CETANA PROOF - Flipbook - Page 38
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
Supply Chain Pyramid:
Materials are rarely ever sourced directly. Instead, materials are
sourced through layers of small-scale intermediaries that act
like compound interest on material cost, without the benefit of
large-scale buying power.
Payment Pyramid:
Like the Supply Chain, Payments filter through the same
intermediaries on Pay-when-Paid contract terms. This causes
significant working capital costs on subcontractors and
Vendors. Margin is often added to offset the cost. The Owner
ultimately pays.
Highly Litigious:
Misaligned incentives create bad behaviour.
ACKNOWLEDGEMENTS
Why hasn’t the business model been disrupted?
The Design & Construction industry is siloed and fragmented.
Our current contracting practices have created a significant
power imbalance so change cannot come from within. Over 99
per cent of companies have fewer than 50 employees. These
small companies deliver more than 80 per cent of the value
created in the industry world-wide. Individually, these companies
do not have the power to change the industry. But collectively,
they can create a revolution!
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