This course is a practical guide for leaders running construction companies or are responsible for project, procurement, or financial management for their company. It offers insights into the inner workings of a construction/architecture company and gives you an understanding of the types of problems you might be solving after joining or starting a company in this domain.
Most of the content in this guide stems from my personal experiences of establishing a design and build company, 91Squarefeet. After spending a significant time understanding the challenges of the construction industry, we encapsulated our learnings into a software called Rdash.
While writing this guide, I have found it beneficial to use RDash as an example, as it creates a visual context. Video
This guide will help you learn about various phases of a project along with the typical day-to-day challenges. I endeavour to nudge you into a problem-solving mindset around solving these challenges by offering some advice on how you can tackle these in a resourceful manner.
Twenty years ago, architects and contractors had distinct roles in India's construction market. Architects focused on designing spaces, while contractors handled on-site work. Clients often hired project management consultants to coordinate between the two.
However, economic reforms at the start of the 21st century sparked rapid growth in infrastructure spending. This allowed the industry to evolve quickly. Companies like L&T, Hafeez Contractor, and JLL started developing complementary skills. Construction companies expanded their design expertise, and design firms built procurement and project management capabilities. This shift led to the emergence of the Design and Build era, where companies offered a one-stop solution for construction and fit-out projects.
Why did these companies pursue becoming design and build firms so aggressively, even when their original businesses were successful? The key reason is the potential for higher profit margins. When projects are divided among architects, consultants, and contractors, profits decrease for each party, and the client's bargaining power increases, further reducing supplier margins. By integrating services, companies could retain more profits and have greater control over projects.
<aside> 💡 For a typical construction project, a contractor's margin is twice as high, and an architect's margin is ten times higher when they offer both design and build services compared to just doing construction or design work alone.
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However, simultaneously managing both design and construction increases the complexity of business operations. This is where technology becomes powerful in the current construction context. Established market players will take time to upgrade their technology to adapt to this sector's dynamism, providing an opportunity for new entrants to adopt technology. They can operate more efficiently than existing companies, disrupting the sector. This is our vision for Rdash - empowering new-age design-build companies to operate with increased efficiency and agility.