CHAPTER 2

Law One: Projects Are All About Money and the Quality of the Deliverable; Like Water, Both Leak Out Through Holes in the Project’s Structure

The basic project model requires the client to have, or have access to, sufficient funds to meet all budgeted costs and for the contractor(s) to have access to sufficient funds to meet all material and labor costs during periods of negative cash flow between tranches of payments. It’s all about the prevention of leakage or waste of money.

We can talk of “water-tight” contracts where the specification and terms are simple, absolutely clear to all, with no gaps through which money can escape. Projects of any size, which are usually made up of several disciplines and sometimes multiple subcontracts, ...

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