Broken Buildings, Busted Budgets: How to Fix America's Trillion-Dollar Construction Industry

  Author:    Barry B. LePatner
  ISBN:    0226472698
  Sales Rank:    125317
  Published:    2008-10-01
  Publisher:    University Of Chicago Press
  # Pages:    240
  Binding:    Paperback
  Avg. Rating:    4.0 based on 12 reviews
  Used Offers:    8 from $10.60
  Amazon Price:    $11.56
  (Data above last updated:  2008-12-04 04:32:20 EST)
  
  
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Broken Buildings, Busted Budgets: How to Fix America's Trillion-Dollar Construction Industry
  
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11-19-08 5 (NA)
(Hide Review...)  A must read book for engineers and students
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As one of the leading construction lawyers in the nation, Barry Le Patner doesn't necessarily expose the faults of the $1 trillion construction industry as much as he lays it out for public view. In writing this book he risks being labeled a pariah in the construction industry for biting the hand that feeds him.
Of the $1.23 trillion spent on construction in the U.S. last year, La Patner points out the industry wastes $120 billion, enough money to set Social Security on the path to financial solvency.
What's the root cause of the waste? La Patner emphasizes the two most hated words an owner hears from a general contractor: cost overruns and change orders. The mom and pop construction industry purposely bids low on a project to lock in a mutable contract. Once in hand, the contractor becomes a monopoly that can run roughshod over the owner with schedule delays and change orders that almost guarantee a large profit for the general contractor.
This is why we see so many articles in newspapers about delays and huge overruns on projects. A recent example of this waste is the Big Dig in Boston. $12 billion over budget, years late, and it leaks.
Mr. LaPatner's solution seems simple, fixed-price contracts and consolidation of the mom and pop small contractors into a larger corporation that will take responsibility for all the construction tasks. He also recommends an intermediary to oversee the project with the interests of the owner in mind, and not the contractor,
This well-written, 200 plus page book will not threaten James Patterson's novels for domination at the beach next summer, but it may have the potential to influence public opinion of the wasteful construction industry just as Rachel Carson's book, Silent Spring influenced and kick-started the environmental movement.
It's probably too late to change the ways and habits of the entrenched contemporary construction industry, but it's not too late to influence the minds of the future architects and engineers attending the nation's universities. This book should be required reading of those students who will someday steer the beleaguered industry.
(Review Data Last Updated: 2008-12-04 04:35:17 EST)
10-27-08 1 (NA)
(Hide Review...)  Pretty Deficient
Reviewer Permalink
Like others here have said - the book offers a promise but doesn't deliver. Ironically - much like the sub-standard contractors the author faults for all of the industry's problems.

The book has serious deficiencies - it is questionable how much the authors really know about certain industry practices such as cost estimating, building information modeling (BIM)or Job Order Contracting (which is never mentioned). Some of their observations are simply anecdotal (despite an over-abundance of footnotes, like some academic text). They seem not to realize some of the circumstances that lead to the current configuration of the industry - such as specialized crafts and training required by contractors in order for owners to get manufacturer's warranties on certain products such as roofing. A general contractor can't keep people like that on the payroll all the time - it's just-in-time work, and a good deal of it is refurbishment, not new construction. Also, much of what the author faults the entire industry for are simply examples of bad management - on the part of architects, contractors and owners. Nothing new there. Then again - that's how the author makes his living - as an attorney in contract disputes. As another reviewer opined - he never sees the good projects.

For example - the author lauds architect Frank Gehry and specifically the Strata Center at MIT. Apparently the book was written before MIT sued Gehry for the many flaws in the design of the $300 million Strata center (search the Boston Globe of November 6, 2007 for the full article.) Just because MIT paid Gehry $15 million - MIT expects a building that doesn't leak, have poor drainage and a host of other problems. The nerve!

Here's another take on Gehry's Strata Center:

"It really is a disaster," said former Boston University president John Silber, who sharply criticizes the Stata Center's design in a new book, "Architecture of the Absurd: How 'Genius' Disfigured a Practical Art."

I was especially amused at how the authors tap-danced around the issue of how the construction industry in the US is supposedly deeply flawed, but leads all the others in the world in productivity! An interesting oxymoron that really isn't addressed.

This book is a scan read, and library loan at best.
(Review Data Last Updated: 2008-11-23 04:06:37 EST)
10-25-08 2 (NA)
(Hide Review...)  Could have been a good trade journal article, not enough substance for a book
Reviewer Permalink
I agree with several other reviewers, this book starts off strong then quickly fizzles into repetitiveness and too much "armchair economist" speculation.

Contractors bid low to get the job then try to make it up on change orders. Therefore we should maybe try something different with contracts. Anyone who has been around construction for any length of time knows this.

I take issue with his call for consolidation (and bureaucratization) in the industry. Do we really want foremen as lobotomized as Target Team Members? Construction today, while not an egalitarian workers paradise, is a place where a person with ambition can still rise to a decent standard of living with just their own hard work and wits. There are meritocratic elements, consensus decision making, and cooperation within the command structure. Why try to make it more like cubicle life?

With regard to productivity, when delays (expected or unexpected) happen in a centralized office or diversified manufacturer, one can often switch to other productive task while waiting. On the job site you can wait drive somewhere else, with productive hours lost to transit and setup time. Perhaps some efficiencies can be gained but for instance what else do you have workers do when finishing concrete? They have to work the concrete a little bit, sit around in the truck, go back and work it a little more, wait in the truck, etc.
(Review Data Last Updated: 2008-10-28 04:20:30 EST)
04-20-08 3 (NA)
(Hide Review...)  Busted expectations
Reviewer Permalink
A decent book and well written but it is thin on solutions and alternatives. Changing the construction contract is the theme of this book and the only relevant solution proposed.
(Review Data Last Updated: 2008-10-26 05:36:50 EST)
  
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