CETANA PROOF - Flipbook - Page 36
FORWARD
STATE OF
THE MARKET
THE NEW KID
ON THE BLOCK
THE PROJECT
OVERCOMING
CHALLENGES
CHALLENGE:
Conventional
Design
SOLUTION:
Choose the
Right Team
CHALLENGE:
Attracting
Investors
SOLUTION:
Building
Confidence
CHALLENGE:
Real Estate
Acquisition
SOLUTION:
Resident
Engagement
CHALLENGE:
Competitive
Industry
SOLUTION:
Building
Legitimacy
CHALLENGE:
Community
Support
SOLUTION:
Local Leadership
& Influencers
CONCLUSION
ACKNOWLEDGEMENTS
Despite all this, the industry remains steadfastly adherent to
a business model that has proven since its inception to be
remarkably ineffective in delivering value to the Owner. It does,
however, deliver exceptional value to the Owner of the GenerallyHeld contract. Innovation cannot meaningfully happen until the
business model is changed.
The diagram opposite is a graphical depiction of the DesignBid-Build delivery model. This is the most common form of a
generally-held contract and unfortunately, the most inefficient
and anti-collaborative. The common problems associated are:
Silo Effect:
Each party has and must fulfill its own separate/
individual obligations.
Risk:
Each party must manage its own assigned risk.
Risk Laundering:
Deliberate efforts are made to contractually
shift risk on to other parties.
Lack of Transparency:
Information is often withheld in order to shift risk
on to other parties.
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