Construction Projects and Construction

¶ … Decision

As the general contractor of a medium size, one of the most important decision points in construction is a go no-go decision. Go no-go decisions have become common in the modern construction industry because of the changing marketplace that has in turn generated complex procurement choices. In light of the changing marketplace in the construction industry, construction companies face new challenges in identifying the most suitable project proposals to adopt and develop vetting measures that help in making the appropriate go no-go decision (Illia & Rubin, 2014). Despite the complexities of such decisions, go no-go decisions remain very crucial choices in this sector because of their significance in weighing costs for the most appropriate project fit.

Contractors need to conduct a go no-go analysis in order to determine the best project fit depending on project specifications and needs. The analysis helps in several aspects including serving as a process of researching and collecting information when there is insufficient information to make the most suitable decision. Additionally, a go no-go analysis helps in exploring the different ways for approaching the project, examine the project's impact on resources, relationships and other factors, and examine the significant opportunities and risks relating to the project implementation.

The go no-go decision making process is also crucial in Design-Bid-Build construction projects, which are commonly used by many building owners. These projects are preferred among many building owners because they utilize different companies for the design and construction segments of building projects (Bryan Construction Inc., n.d.). Notably, these types of projects consist of three major phases i.e. design, bid, and build. In the first phase i.e. design stage, building owners work in collaboration with the architect to determine the specifications of the design. Upon completion of the process, the architect provides bid documents, which include technical aspects and drawings of the building. The documents are used during the second phase to identify contractors through reviewing proposals from different contractors. After identifying the contractor, the construction process of the project commences depending on the initial bid documents and specifications.

For a Design-Bid-Build office building project in Auburn, Alabama, a go no-go decision will be important in ensuring that each of these three phases are carried out in an effective manner that meet initial specifications and needs. As previously mentioned, this process requires considering several decision points using a go no-go analysis. The first decision point to consider in making a go no-go decision is whether the technical specifications and drawings provided by the architect are suitable for an office building. The process of creating the building's design specifications is usually completed by the architect in collaboration with the building owner. While the contractor is not involved in the first phase of the project, an evaluation of whether the design specifications are for an office building is an important decision point in making a go no-go decision. During this process, the design specifications will be evaluated in line with regulations that govern the development of office buildings in Alabama. This is an important consideration in go no-go decision making because states have slightly different regulations for construction of different kinds of properties. Compliance with Alabama's Building Code during the design phase is an important issue of evaluation before proceeding with the construction process in order to avoid any legal hurdles that could arise if the office building does not meet the provisions of this Code.

The second decision point for consideration in a go no-go decision for a Design-Bid-Build office building project in Auburn, Alabama is whether there are adequate resources and time for completion of the project as required. Once a review of the design specifications is completed, the identification of necessary resources and time for project completion is important in a go no-go decision. One of the vital aspects of a go no-go decision is weighing the costs for the best project fit through a rigorous process that entails identification of the necessary resources and time for the construction. As a medium size general contractor, the determination of resources and time is vital to avoid premature termination of the project once construction begins.

The third consideration is whether we have expertise to complete the project if our proposal or bid is accepted. As previously indicated, the second phase of these kinds of construction projects involves bidding where different companies provide proposals based on bid documents provided by the architect and building owner regarding design specifications. Therefore, an examination of whether there is expertise to complete the office building based on the design specifications is significant in determining whether to proceed with the project or not. The evaluation of expertise also entails determining whether the company or contractor can successfully compete with the other candidates bidding for the project.

The final consideration in a go no-go decision relating to this project is evaluating whether the cost is worth the probable fee (Rudy, 2014). Some project bids involve certain bidding costs or fee, which must be evaluated before making a decision on whether to bid for the project or not. This is an important consideration that is carried out as part of initial evaluation of internal factors before committing to a construction project. If the cost is not worth the potential fee, then it will be inappropriate for the contractor to commit to the project and vice versa. This also helps in avoiding bidding for inappropriate projects that could result in loss or consumption of time and resources and eventual financial failure (Bagies & Fortune, 2006).