When we utilize the term “distressed” we use it to represent a project that is almost 20% off its originally approved planned progress and schedule baseline targets or 20% over its A project can be “distressed” at all stages of the construction lifecycle including pre-construction, construction and post-construction.
- Pre-construction milestone dates could be consistently missed due to lack of efficient and effective project management and consultant coordination.
- Construction baseline target dates could be missed due to poor contracts administration and schedule management.
- Post-construction forecasts could be missed due to lack of contract closeout expertise.
Spotting the early warning signs of a project becoming distressed can be difficult and are not always obvious, or easy to spot. Particularly if you have never been involved with and/or recovered one.
The early warning signs of distressed project include:
- communication problems
- slow progress on site compared to what was planned
- inordinate number of Requests for Information (RFIs)
- numerous Change Orders (COs)
- significant reduction and/or lack of site labour and personnel
- delays and non-delivery to planned material and equipment supplies
- replacement of subcontractors, trade contractors, vendors and suppliers
- high turnover of Site Managers and Staff including Site Supervisors, Site Clerks and Site Coordinators
- missing or late payments
- overpayment due to contractor over-claiming on each application for payment
- failure to rectify or remedy breaches of contract
- failure to rectify or remedy construction deficiencies
For project owners, developers and stakeholders, the turnaround or recovery of a distressed project is usually a stressful and expensive initiative that also carries high risks of failure.
With the construction industry is facing an unprecedented personnel and material shortage and with complex construction projects often left to inexperienced general contractors, construction managers, project managers, site supervisors, contracts administrators and trade contractors we are seeing now more than ever projects severely delayed, deficient and or distressed leading to project failure and suspension.
In the face of crisis and uncertainty, The GeoFocus Group provides leadership, experience and technical expertise. Our 50+ year record in the industry combined with our experience in the provision of technical due diligence and strategic project recovery and turnaround, enables us to understand the issues that are associated with project failure and or suspension. With the priorities established and the issues defined, we progress to creating, implementing, and then executing a recovery and turnaround plan.
