Reasons Construction Projects Go Bad

Engineers — by Alton Heathcoat, representing the Society of Professional Engineers

• Poor understanding between the parties involved
• Failure to receive timely approvals and permits
• Design errors
• Designing to "wants" not "needs"
• Design changed to fit budget
• Poor onsite inspection
• Poor contractor quality
• Untimely delivery of equipment, reports, payments

Contractors — by Ron Crutcher, representing the Association of General Contractors

• Poor plans and specifications
• Unclear areas of responsibility and authority
• Delays: weather, deliveries, design details
• Payment delays
• Disputes: Who can stop work?

Owners — by Larry McElroy, representing Consolidated Utility District, Rutherford Co.

• Delays: TDOT, other utilities
• Misunderstandings between parties involved
• Too many bosses
• Professional incompetence of the parties involved
• Gray contract language

Financial — by SCORE members

• Incomplete forms and applications
• Inadequate financial resources
• Incompetence of the parties involved
• No central clearinghouse

Construction Managers — by Earl Sizemore, P.E., representing Sizemore Consulting

• Poor communication
• Poor plans and specifications
• Inexperienced contractors
• Financial confusion, pay requests, change orders, retainage, payment delays

Legal Perspective — by R. Loy Waldrop Jr., representing Lewis, King, Krieg, Waldrop & Cantron, P.C.

• Poor direction and project definition
• Project and funding mismatched
• Personnel quality
• Poor conflict resolution

Root Causes of Failed Construction Projects
Shortage of:

• Skill
• Effective Communications
• Knowledge
• Time
• Money