OVERVIEW

Conditions in the construction market are always changing; construction activity fluctuates up and down mainly as a result of economic forces. Specific types of construction are in or out of vogue depending on demand. Last year's sizzling residential market will perhaps be replaced by this year's new "hot" markets in, for example, office, retail, and mixed-use developments. Some regional markets that are "booming" now may be fading before too long. These constant shifts have a significant impact on construction companies as they scramble to adapt to the latest market trends and avoid being left out of the game.

The construction industry itself is in a state of transition as it tries to keep up with an increasingly complex and demanding world. Project owners' expectations are higher than ever with regard to contractor expertise, quality of work, service, and ability to meet tight budget and schedule requirements. Owners are also as eager as ever to shift the bulk of the risk to the constructor. The work itself is becoming more complex as better, smarter, and "greener" building designs and systems are becoming popular. New project delivery alternatives are sprouting in every direction in efforts by construction companies to offer something "new" and to satisfy increasingly sophisticated customer and project needs.

And yet, some things never change. We're still faced with age-old industry weaknesses and problems with no resolution in sight, including low profitability, intense price competition, material price fluctuations, inefficient purchasing methods, shortages in labor and materials, combative relationships on...