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"THE COMMERCIAL REAL ESTATE REVOLUTION"
Nine Transforming Keys to Lowering Costs, Cutting Waste, and Driving Change in the Broken Construction Industry.
Authors: Rex Miller, Dean Strombom, Mark Immarino & Bill Black.

Chapter 2

What Every Executive Needs to Know About Low-Bid Contracting

All too often projects suffer because the design and construction team are cobbled together for the first time and have no expectation of ever being together in the future. Worse still, most of them will have been selected on a lowest price basis, where profit margins have been squeezed to the bone and the only way of making a decent profit may well be through claims against other team members, or against the client. —Clive Thomas Cain, Profitable Partnering for Lean Construction

The 2004 U.S. Olympic men’s basketball team should have won the gold medal. They were the best players on the planet. They all wanted to win gold; they had strong incentives and the pride of representing their country. Yet the team failed. In 2008, the U.S. team—great players with strong incentives and the pride of representing their country on the world stage—did bring home the gold. The difference wasn’t in the varying skills of the individual team members, but in the

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What Every Executive Needs to Know About Low-Bid Contracting

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specific kind of leadership provided by Coach Mike Krzyzewski. In picking players for his team, he invested a great deal of time considering not only individual talents, but how well the players interacted with other team members: chemistry and complimentary talents. The winning difference is seldom the aggregate of talent but how well players act as a team, making the most of the talent they have.1 The 2008 team’s success was crafted and assured before they ever assembled as a team.2 This winning approach would seem tailor-made for the building projects,

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