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How One Construction Firm Cut Project Overruns 40 Percent With a Single Contract Change
Episode 92 of The Operator's Manual looks at how a mid-size commercial construction company in Austin slashed schedule overruns by 40 percent and cost overruns by 28 percent by rewriting one clause in its subcontractor contracts. Lucas and Luna walk through the specific change: replacing the standard 'time is of the essence' clause with a 'shared delay risk' framework that tied penalties to root cause analysis. They discuss why most construction contracts incentivize blame-shifting, how the new clause changed behavior on the ground, and the surprisingly simple data…
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