Several construction projects and relationships between the contractors and owners start with the best intentions. However, over time, the project might face problems in terms of finance and cash flow. Financial risks are one of the most dreaded construction project management risks that everyone fears. It needs to be identified and arrested in its early stages so that the project is not stalled and losses do not occur.
Kanat Sultanbekov New York – The role of the construction project manager and how can he tackle financial risks of the project?
Kanat Sultanbekov is an esteemed construction project manager from New York widely respected for his ability to balance strategic planning, operational processes, and risk management for all his projects. He maintains the highest safety standards for his projects and has exemplary leadership skills to ensure they are completed on time and within budget.
Good relationships between clients and contractors
In the opinion of Kanat Sultanbekov New York, like every service professional, contractors should nurture positive client relationships for expanding and developing their business. However, communication is often a major obstacle even in a healthy relationship, and the contractor must foster the trust of the owner that the construction project is on budget and within the timeline.
According to him, when it comes to hiring a manager or a general contractor, they vary in their levels of experience and understanding of the process needed to keep financial risks at bay. The job is complex, and it takes time, so construction managers need to start detecting these risks before the project starts. However, it is here that an anticipated estimate of the risks that the project is likely to face help.
The sharing of reports, contracts, and records should be transparent and regular
Reports and records should be shared between the concerned parties on a regular basis, and a contract on the job cost and compliance audit will render peace of mind to ensure that the project resources are being managed carefully. This step allows the project owner to focus on different technical issues that arise on a day-to-day basis and invoke confidence in the manager or contractor that an independent authority is present to monitor the work completed.
Evaluation of the technical aspects of the project needs to be done
According to Kanat Sultanbekov New York, there must be a good relationship between clients and contractors for all construction projects. Both of them should mutually agree to hire an experienced architect or a professional in construction management to supervise all the project’s technical details. This is one of the best practices in the industry for reducing financial risks.
There needs to be an evaluation of the costs, performance, schedule, and regulatory and safety compliance. The amount of time left for the review of all the above factors needs to be done in detail, along with the analysis of the invoices, payment applications of the sub-contractor, delivery receipts, and other factors that are important for the construction project.