An Ounce Of Prevention Is Worth A Pound Of Cure

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“An ounce of prevention is worth a pound of cure.” Among the many idioms attributed to Benjamin Franklin, this phrase stands out as a timely admonition for the construction industry. Its origin has been linked to Franklin urging Philadelphia to create a firefighting group similar to that which existed in Boston circa 1735. We likely cannot fathom a society where the profession of firefighting is nonexistent and the responsibility for fighting fires falls to anyone -- regardless of training and experience -- who happens to find himself in close proximity to a blaze, and Franklin’s words of caution seem prescient in retrospect. Similarly, the current cross-roads in the construction industry as to whether and to what extent contractors…show more content…
II. What is a pre-bid risk assessment? A pre-bid risk assessment is precisely that which its name suggests: an assessment of a project’s risks undertaken by a party prior to that party’s submission of a bid for work on the project. However, this simplified definition of a pre-bid risk assessment fails to account for the nuances and high level of detail associated with such an undertaking. More than a mere step in the process of bid/no-bid decision-making, a pre-bid risk assessment analyzes not only a project’s risks but also its opportunities. Implicit in this analysis is the fact that a project’s risks and opportunities vary greatly depending upon a list of variables that include the individual contractor’s size, sophistication, and risk tolerance. To that end, a pre-bid risk assessment is more accurately defined to include the disciplined approach, procedures and tools initiated prior to tender to evaluate viability, feasibility, complexity, challenges and the financial attractiveness of a project. This evaluation is facilitated through the identification and tabulation of project risks and opportunity, with the ultimate goal being an increase in key performance indicators such as win rate and capture rate. After the requisite identification and tabulation of project risks and opportunities, each is graded by severity, in terms of probability and impact. Through this identification and
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