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65% of Mega-projects Fail

There’s a reason why  Mega-projects are simply called “Mega-projects.” Extremely large in scale with significant impacts on communities, environment and budgets, mega-projects attract a lot of public attention and often cost more than 1 billion. Because of its grandiose, a successful mega-project requires a lot of planning, responsibility and work. Likewise, the magnificence of such projects also creates a large margin for failure.

Mega-projects Come with Big Expectations. But a Project’s Success Is Often in the Eye of the Beholder

Despite their socio-economic significance mega-projects – delivering airports, railways, power plants, Olympic parks and other long-lived assets – have a reputation for failure. It is thought that  over optimism, over complexity, poor execution, and weakness in organizational design and capabilities are  the most common root causes of megaproject failure.

Blinded by enthusiasm for the project, individuals and organizations involved with mega-projects often miscalculate the complexity of the project. When a mega-project is pitched, its common for costs and timelines to be underestimated while the benefits of the project are overestimated. According Danish economist Bent Flyvbjerg, its not unusual for project managers who are competing for funding to massage the data until it is deemed affordable. After all, revealing the real costs up front would make a project unappealing, he said. As a result, these projects are destined  for failure.

For example, building new railways spanning multiple countries could prove to be disastrous if plans are overly complex and over-optimized. Such a large-scale project involves national and local governments, various environmental and health standards, a wide range of skills and wages, private contractors, suppliers and consumers; therefore, one issue could put an end to the project. Such was the case when two countries spent nearly a decade working out diplomatic considerations while building a hydroelectric dam.

Complications and complexities of mega-projects must be considered thoroughly before launch. One way to review the ins and outs of a project is through reference-class forecasting. This process forces decision makers to look at past cases that might reflect similar outcomes to their proposed mega-project.

Poor execution is also a cause for failure in mega-projects. Due to the overoptimism and overcomplexity of a project, it’s easy for project managers and decision makers to cut corners trying to maintain cost assumptions and protect profit margins. Project execution is then overwhelmed by problems such as incomplete design, unclear scope, and mathematical errors in risk assessment and scheduling.

Researchers at McKinsey studied 48 struggling mega-projects and found that in 73 percent of the cases, poor execution was responsible for cost and time overruns. The other 27 percent ran into issues with politics such as new governments and laws.

Low productivity is another aspect of poor execution. Even though trends show that manufacturing has nearly doubled its productivity in the last 20 years, construction productivity remains flat and in some instances has even declined. However, wages continue to increase with inflation, leading to higher costs for the same results.

According to McKinsey studies, efficiency in delivering infrastructure can reduce total costs by 15 percent. Efficiency gains in areas like approval, engineering, procurement and construction can lead to as much as 25 percent of savings on new projects without compromising quality outcomes. This proves that planning before execution is worth its weight in gold.

We Tend to Exaggerate the Importance of Contracting Approach to Project Success or Failure

Finally, weaknesses in organizational design and capabilities results in failed megaprojects. For example, organizational setups can have multiple layers and in some cases the project director falls four or five levels below the top leadership. This can lead to problems as the top tier of the organizational chain (for example, subcontractors, contractors and construction managers) tend to focus on more work and more money while the lower levels of the chain (for example, owner’s representative and project sponsors) are focused on delivery schedules and budgets.

Likewise, a lack of capabilities proves to be an issue. Because of the large-scaled, complex nature of mega-projects, there is a steep learning curve involved and the skills needed are scarce. All the problems of megaprojects are compounded by the speed at which projects are started. When starting from scratch, mega-projects may create organizations of thousands of people within 12 months. This scale of work is comparable to the significant operational and managerial challenge a new start-up might face.

In the end, it seems that if organizations take the time to thoroughly prepare and plan for their mega-projects, problems like overcomplexity and overoptimism, poor execution, and weaknesses in organizational design and capabilities could be avoided. After all, mega=projects are too large and too expensive to rush into.

 

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How To Deliver On The Promise of MegaProjects

Due to the large scale and outlook attached to them, mega-projects have a large opportunity for failure. Typically, the failure begins at the outset of the project, whether that be due to poor justification for the project, misalignment among stakeholders, insufficient planning, or inability to find and use appropriate capabilities.

Underestimated costs and overestimated benefits often offset the baseline for assessing overall project performance. This is why it is important for organizations to first establish social and economic priorities before even considering what projects will answer their needs. Once social and economic priorities are established, only then can a project be considered. Selecting projects must be fact-based and transparent in order to ensure accountability with stakeholders and the public.

Successful Megaprojects Must Have Robust Risk-analysis or Risk-management Protocols

It’s also important to maintain adequate controls. Successful megaprojects must have robust risk-analysis or risk-management protocols and provide timely reports on progress relative to budgets and deadlines. Typically, progress is measured on the basis of cash flow, which is less than ideal as data could be out of date and payments to contractors do not correlate construction progress. Instead, project managers should deliver real-time data to measure activity in the field. For example, cubic meters of concrete poured relative to work plans and budgets.

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Overall, improving project performance requires better planning and preparation in three areas: doing engineering and risk analysis before construction, streamlining permitting and land acquisition, and building a project team with the appropriate mix of abilities.

Project developers and sponsors should put more focus into pre-planning such as engineering and risk analysis before the construction phase. Unfortunately, most organizations and sponsors are reluctant to spend a significant amount of money on early-stage planning because they often lack the necessary funds, they are eager to break ground and they worry the design will be modified after construction is underway, making up-front designs pointless.

However, it’s proven that if developers spend three to five percent of capital cost on early-stage engineering and design, results are far better in terms of delivering the project on-time and on-budget. This is because through the design process, challenges will be addressed and resolved before they occur during the construction phase, saving both time and money.

It’s not unusual for permits and approvals to take longer than the building of a megaproject. However, if developers look to streamline permitting and land acquisition, that would significantly improve project performance. Best practices in issuing permits involve prioritizing projects, defining clear roles and responsibilities and establishing deadlines.

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In England and Wales, developers applied these approaches to cut the time needed to approve power-industry infrastructure from 12 months to only nine months. On average, timelines for approval spanned four years throughout the rest of Europe. Likewise, the state of Virginia’s plan to widen Interstate 495 in 2012 was able to cut costs and save hundreds of homes thanks to land acquisition planning by a private design company.

Investors and Owners Must Take an Active Role in Creating the Project Team

When it’s all said and done, projects cannot deliver the best possible return on investment without a well-resourced and qualified network of project managers, advisers and controllers. Investors and owners must take an active role in creating the project team.

It’s not enough to have a vague overview of what the project might look like in the end. Instead, it’s necessary to review risks and costs and draft a detailed, practical approach to tackle various issues. An experienced project manager cannot do it all alone. The project team must include individuals with the appropriate skills, such as legal and technical expertise, contract management, project reporting, stakeholder management, and government and community relations among others.

Failure to Properly Plan for These Projects Could Have a Negative Impact on Society

While mega-projects are important in filling economic and social needs, failure to properly plan for these projects could have a negative impact on society.  Take  Centro Financiero Confinanzas (Venezuela), the eighth tallest building in Latin America at 45 stories, located in the financial district of Venezuela’s capital, Caracas for example.

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To those unaware of its history, the Centro Financiero Confinanzas is actually home to over 700 families, a “vertical slum” that is a truly fascinating example of reappropriation of space in an urban environment. An ironic symbol of financial failure that was intended to represent the unstoppable march of Venezuela’s booming economy.

It’s much more than an unbuilt building, bridge or tunnel, failed mega-projects are a blow to the economic growth and social improvements of communities around the world.

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42 Masterful Quotes to Inspire Healthier Relationships

42 Masterful Quotes to Inspire Healthier Relationships

Conflict is part of our working life and is often used as a way to work out our differences and reach a conclusion. It’s usually the approach you take that tends to exacerbate the issues and cause undue stress. How you deal with conflict reveals your character.

  1. The wise man doesn’t give the right answers, he poses the right questions — Claude Lvi-Strauss
  2. A crisis is a turning point — Anne Lindthorst
  3. Conflict is inevitable, but combat is optional — Max Lucade
  4. Don’t be afraid of opposition. Remember, a kite rises against, not with, the wind — Hamilton Mabie
  5. There is no way to peace. Peace is the way — AJ Muste
  6. The real art of conversation is not only to say the right thing in the right place but to leave unsaid the wrong thing at the tempting moment — Dorothy Nevill
  7. The most basic of all human needs is the need to understand and be understood. The best way to understand people is to listen to them — Ralph Nichols
  8. The more we sweat in peace the less we bleed in war — Vijaya Lakshmi Pandit
  9. To live a creative life, we must lose our fear of being wrong — Joseph Chilton Pearce
  10. A man convinced against his will”¦is not convinced — Laurence J. Peter
  11. My problem is I say what I’m thinking before I think what I’m saying — Laurence J. Peter
  12. Discussion is an exchange of knowledge; argument an exchange of emotion  –  Robert Quillen
  13. You can’t influence somebody when you’re judging them — Tony Robbins
  14. Quarrels would not last long if the fault were only on one side — Duke François de La Rochefoucauld
  15. It is astonishing how elements which seem insoluble become soluble when someone listens. How confusions which seem irremediable turn into relatively clear flowing streams when one is heard — Carl Rogers
  16. If it’s mentionable, it’s manageable— Mr. Rogers
  17. Don’t let yesterday use up too much of today — Will Rogers
  18. The best way to persuade people is with your ears,  by listening to them  — Dean Rusk
  19. The greatest challenge to any thinker is stating the problem in a way that will allow a solution — Bertrand Russell
  20. It is with the heart that one sees rightly; what is essential is invisible to the eye — Antoine de Saint-Exupry
  21. Human beings love to be right. When a person is willing to give up being right, a whole world of possibilities opens up — Pete Salmansohn
  22. The test of a successful person is not an ability to eliminate all problems before they arise, but to meet and work out difficulties when they do arise — David J. Schwartz
  23. Why not go out on a limb? Isn’t that where the fruit is? — Frank Scully
  24. Before you speak, ask yourself: Is it kind, is it necessary, is it true, does it improve the silence? — Shirdi Sai Baba
  25. When things are not working for us, instead of fighting and struggling, we need to say, “What’s happening here? How am I not being true to who I am? What is pulling me away from my purpose?” — June Singer
  26. The only people with whom you should try to get even are those who have helped you — John E. Southard
  27. It takes two to quarrel, but only one to end it — Spanish Proverb
  28. The first problem for all of us, men and women, is not to learn, but to unlearn— Source unknown
  29. Confidence, like art, never comes from having all the answers; it comes from being open to all the questions — Earl Gray Stevens
  30. Life is ten percent what happens to me and ninety percent how I react to it — Charles Swindoll
  31. If you are patient in one moment of anger, you will escape a hundred days of sorrow — Carol Tavris
  32. Peace is not the absence of conflict but the presence of creative alternatives for responding to conflict—alternatives to passive or aggressive responses, alternatives to violence — Dorothy Thompson
  33. Let us not look back in anger, nor forward in fear, but around in awareness — James Thurber
  34. A good manager doesn’t try to eliminate conflict; he tries to keep it from wasting the energies of his people. If you’re the boss and your people fight you openly when they think that you are wrong,  that’s healthy — Robert Townsend
  35. Knowledge becomes wisdom only after it has been put to good use — Mark Twain
  36. People who fight fire with fire usually end up with ashes — Abigail VanBuren
  37. The most common way people give up their power is by thinking they don’t have any — Alice Walker
  38. It isn’t a mistake to have strong views. The mistake is to have nothing else — Anthony Weston
  39. I’ve found that I can only change how I act if I stay aware of my beliefs and assumptions. Thoughts always reveal themselves in behavior — Margaret Wheatley
  40. I would not waste my life in friction when it could be turned into momentum — Frances Willard
  41. When you’re at the edge of a cliff, sometimes progress is a step backward — Source unknown
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5 Indicators You’ve Hired the Right Project Manager

5 Indicators You've Hired the Right Project Manager

The importance of hiring the right project manager cannot be overstated enough. Whenever senior managers are asked  to identify outstanding project managers, they almost always have a hard time doing so. What’s most concerning about this is that almost £2 trillion pounds  are spent on these projects across the globe, according to Gartner.

There is no doubt that it takes a lot of time and effort to become an outstanding project manager. This isn’t a job  for the faint hearted.

A great project manager has leadership traits that should be easily recognised in all   steps of the hiring process.

Things like psychometric testing and method certificates can only provide so much information on potential employees. To find  the best candidates for your position you need to  ask them real questions about their experience, such as how they dealt with and recovered from a failure; what methodologies they use to manage projects and deal with sponsors; or their creative process when coming up with original ideas for strong team building. An awesome project manager is able to answer these questions easily.

Successful project managers should have experience in dealing with both failures and successes to gain the skills they need to build a strong team that delivers results consistently.

Here are five strong indicators that the person you have hired as a project manager is likely to be successful in their new role:

You Can Catch More Flies with Honey than with Vinegar

1. People like them!

Project managers who are difficult to get along with or have unlikeable personalities are not likely to be great motivators. Awesome project managers aren’t afraid to listen to the ideas and feedback of their team members for the best overall results.

They should be friendly and have respect for everyone they are working with at all times.

2. They don’t blame others nor take credit for successes.

It can be hard not to get involved in the “blame game” when something doesn’t go exactly as planned. It can be equally as challenging to not “glory grab” when a project goes off brilliantly and without a hitch.

A strong project manager will shield their team when criticism is raining down by passing the message down in a constructive way, so it can be addressed and fixed promptly. In the event of a project success, great project managers make sure the people who were key to the assignment are rewarded for their work. When they speak of a successful project, they highlight the strength of their team and not just themselves.

3. They involve the entire team in planning.

A great plan is usually always the result of a “mastermind”, or the combined effort of one or more people working towards a common goal. Strong project managers encourage everyone on the team to contribute their thoughts and feedback in the planning process. While not everyone will be actively contributing to the campaign design, they listen to the opinions and ideas of people who the project will affect, such as the CEO, and the marketing department.

A strong project manager should foster a productive, creative and enjoyable work environment. By doing so, they maximise the time they work with their team so they deliver a great end product.

4. They’re serious team builders.

A great project manager understands that a major key to their project success is the team that stands behind it. Successful project managers take the time to select from the talent that is best suited for the job they need to complete. Instead of settling for just anyone who can join the team because they’re free, a skilled project manager is willing to do what it takes to onboard and recruit the people they think will bring the most to the table.

5. They’re strong managers.

A strong manager knows how to take the lead. They understand what it takes to lead their team. They know how to motivate those working with them. They realize that they are a part of something greater. They’re not afraid to take responsibility for all aspects of the project, regardless of whether it’s failure or success.

As a project director  or hiring manager, it can be a challenge to find a powerful project manager, but once you connect with the right person, you’ll know it almost instantly. A strong project manager absolutely loves what they do and they’re not afraid to tell you about how excited they are about their past, present and future endeavours.

They strive to be the best leaders and always respect the ideas and positions of others who present them with questions that need solutions. They go the extra mile to make sure that all details of their projects are addressed and fine tuned. They speak positively of their peers, their team and anyone else who is involved in the project.

What are your thoughts on what makes a project manager shine? What do you think makes the cut between being an average project manager and an awesome project manager? We  invite you to share your thoughts and experience.

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The Good, the Bad and the Ugly of Agile Methodologies

The Good, the Bad and the Ugly of Agile Methodologies

The “agile” buzzword has really taken hold among a myriad organisations worldwide. That result is not particularly surprising. Who wouldn’t love to employ light and fast tactics that allow them to respond to rapidly changing challenges? Despite all the optimism about agile methods, the bigger question is how well companies are actually doing when it comes to employing these methodologies in the real world. Without understanding what the core objectives of embracing agile methods are, it’s not going to be easy to gain results.

Agile methodology is employed in order to reduce the time, risk, and cost that is associated with a project. However, these massive benefits are not going to materialise out of thin air. They are the result of the dedicated work of a team who is well versed in implementing the methodology.

To become “agile” will require organisations to take a quantum leap in their culture. They will have to embrace the entire philosophy behind these methods or no real change will take place. Truly agile companies are the ones that have gone through a transformative process in order to implement brand new processes that say goodbye to the past. This takes a lot of work and effort and not all organisations are willing or able to do this.

Ugly Agile Implementations

Project teams that are solely focused on results and who don’t do their homework end up with very ugly agile implementations. These teams are so excited about agile as a concept that they convert everyone in their organisation into adopting the methods. The problem is, they do not spend the requisite time getting everyone on board with exactly what needs to be done.

Because of this oversight, the projects are plagued with poor communications and engagement. The project team and others in the organisation are each working on their own tasks with no thought to how the pieces fit together in the “big picture.” This is a major problem because agile methods really only shine when the whole organisation works as one well-oiled unit. In this scenario, major issues at the core of the project are neglected and the entire project goes off the rails. This leaves a bad taste in the mouths of managers, who are no longer excited about agile methods.

Really ugly agile implementations have the wrong focus. Because of this myopia, the true benefits of agile employment are never realised. Before long, things, unfortunately, go back to “normal.”

Bad Agile Implementations

Some businesses completely miss the boat when it comes to agile deployment. They’re interested in receiving the benefits of reduced costs, faster time to market, and cutting “red tape.” Despite this knowledge, they’re not truly committed to the all of the values that are espoused by the Agile Manifesto. Without this commitment, they cannot possibly hope to fully embrace a functional implementation.

Organisations like to invest in education and communications, but they ignore important concepts like utilising the tools that help them truly embrace agility. They even form teams that understand cross-functionality, but without empowerment they are unable to make vital decisions.

Lastly, organisations that do poor agile implementations perform project reviews regularly enough, but the input from the meetings is never acted on by anyone. The key issues that are preventing proper implementation are never properly addressed and the project fails on its promise. Organisation members swear off the agile methods forever at this point.

Good Agile Implementations

When business personnel and IT staff work together, good implementations of agile are the result. These units work together so that a project delivery methodology is presented to the organisation that meets its needs. They also spend the time to create the cultural changes needed to ensure the methods are successful.

In organisations like this, team members, business end users, along with senior management and key stakeholders received a continuous education that empowers them all. Cross-functional teams that excel are the results. These organisations also invest in the techniques and tools that fully support agile. That includes test driven development, continuous builds, new standards, and more. With these in place, a platform that ensures long-term success will be installed.

Particularly telling, these businesses conduct regular project reviews which they conceptualise as opportunities to improve instead of something that simply has to be done. When change is needed, they embrace it and plan for it. When it arrives, they are ready and the organisation continues to excel. A sign of a good agile implementation is when the organisation is  commits to making long-term changes that will benefit the methodology in the long run.

It doesn’t pay to underestimate just how difficult implementing good agile really is. Since major internal changes to how project delivery is done need to be embraced, the road ends up being a challenging one. Traditional managers will be challenged because empowered teams now have more input than ever before.

Once a good agile implementation is in place, the benefits are obvious and plentiful. An energised, cross-functional community of empowering people who are all focused on common goals get more done than ever before. Good implementation put platforms into use that improve project delivery because they allow for test-driven development, continuous integration, standards implementation, and best practice design applications.

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Top 10 Project Management Myths Debunked

Since the dawn of time, mankind has used myths to make sense of the uncertainty that surrounds us.  In the early 1990s  a lot of  people believed that project management was the best kept secret in business.  However,  because project management was not  seen as a  prevailing profession at that time, it suffered from a lack of awareness  which was  in a sense, a double edged sword. Those who were knowledgeable in the practice of project management became extreamly valuable to organisations and pioneers for  the profession.

These early adopters were able to convince organisations that project management practitioners were needed.  Myths around project management began to form in the business community  and as the role of the  project manager was unclear, questions were raised as to what project management was  and what it could offer organisations.

The definition of the word myth is a “widely held, but false belief or idea.” Here, we’re going to examine 10 of the most pervasive PM myths that have emerged.

Myth #1 – Contingency pool is  redundant  

This is one of the most ‘mythical’ myths that has plagued the industry  for a long time. Coupled  with the tendency to presume that ‘real work’ is tantamount to implementation or building something concrete and you have the perfect recipe for project disaster.  The thought pattern behind this approach typically originates from budget constraints and/or having unrealistic expectations. As we all know, or should know, the unexpected happens quite regularly. An effective contingency plan is important as it aims to protect that which has value (e.g., data), prevent or minimise disruption (e.g., product lifecycle), and provide post-event feedback for analysis (e.g., how did we fare? did we allocate funds correctly?).

Myth #2 – Project Management software is too expensive

If your idea of project management software involves purchasing servers, and purchasing a software application from a major vendor for a small practice with 10  practitioners  then, yes, it  is too expensive. If, however, you have gone cloud and elected to use a powerful web-based project management solution (such as Smartsheet), then you are likely to save thousands of pounds while reaping the benefits of a pay-as-you-go price structure. The present, and future, lie in cloud solutions that provide equal, or superior, functionality at a fraction of the cost.

Myth #3 – Project Management methodologies will slow us down

Project  managers  have  a reputation of using  process-intensive  methodologies  that favour ideology over pragmatism. In some instances this may, indeed, be the case when  there is a mismatch between a specific project management approach and the organisation’s acutall needs (e.g., a process-driven method, such as PRINCE2, may not be appropriate for a slightly chaotic environment that favours an adaptive approach, such as Scrum). So, in sum, put down the paint roller (“Project Management isn’t for us!”) and take out your fine-bristled brush (“The Critical-Chain method may not be our cup of tea, but Agile on the other hand”¦”).

Myth #4 – Facts and figures are more important than feelings and perceptions

While facts are very important, projects are often derailed and sabotaged because of false perceptions.  The PM must pay attention to both fact and fiction to navigate through turbulent  organisational change.

Myth #5 – Project managers need to be detail oriented and not strategic in nature

While it is of the utmost importance for the project manager to understand how to read the details of the project, they must also understand how the project supports organisational objectives.  Having a strategic perspective adds great value to the skill-set of the project manager.

Myth #6  Rely on the experts in everything that you do

It is true, we do need to rely on the experts but our trust can not be a blind faith.  The job of the project managers in this area is twofold.  First we must extract information and second we must verify that the information is accurate.  A good example of this is asking a planner  to provide an estimate on the effort required to perform a task.  In some instances team members forget to include tasks which ultimately results in a faulty estimate.

Myth #7  All the battles have to be fought and won so that we can succeed

Project managers sometimes make the assumption that they need to stand firm to get the job done, however, coming to compromise  on a particular issue is often a better course of action  in order to  win the war.

Myth #8 Project Managers  can wear multiple hats  

Wearing different hats can be extremely confusing.  This is especially true if the project manager is asked to be a business analyst or technical expert on top of serving in their PM role.  They end up doing  both roles with mediocrity.  When we “wear two hats” we essentially tell ourselves that both hats fit on one head at the same time. However, what happens if the demands of two roles conflict  and what assurances do we have that we’re managing the inherent conflict of multiple roles  and the  risks the  roles introduce? Sadly, multiple roles become more common as we move up the management hierarchy in an organisation, and that’s exactly where potential conflicts of interest can do the most harm.

Myth #9  Once the risk register is created, it’s full speed ahead

Risk management provides a forward-looking radar. We can use it to scan the uncertain future to reveal things that could affect us, giving us sufficient time to prepare in advance. We can develop contingency plans even for so-called uncontrollable risks, and be ready to deal with likely threats or significant opportunities.  Too often, it’s not until a catastrophic event occurs and significantly impacts project progress that ongoing risk reviews are conducted.

Myth #10 Project managers can not be effective in their role unless they have specific technical expertise in the given field that the project falls  within

You don’t need to be an engineer to manage a construction project or a IT  technician to manage a software development project.  All you need is a  fundamental  understanding with strong PM skills to manage  the team.  Experience in the field helps but does not guarantee success.

Project management is challenging enough without the myths. The profession has come a long way since the 1990s and some of these myths are fading. However, we still see remnants of them in one form or another.  Great projects cut through false assumptions and confusion, allowing their teams to make smart decisions based on reality.

These are just 10 project management myths, what are yours?  

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13 Basic Facts You Should Know about Modular Homes

The concept behind a tiny garden pavilion in London, UK was simplified by the following equation: shed + office = Shoffice.

Modular homes sometimes referred to as “factory-built construction“,  encompass a category of housing built in sections typically at a factory  location.   These houses must conform to local and regional building  codes for the country the buyer plans to situate the dwelling.  

Just like site-built housing, construction teams build modular homes to  last and increase in value over time.   As the factory finishes building sections of the house, each piece is transported to the homeowners build site on large truck beds.   Local building contractors then assemble the house and inspectors ensure the manufacturer has built your residence to code.   Most customers find that modular housing is less expensive than  site-built homes.

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1. Benefits of Construction

One of the benefits of  construction is that manufacturers build them indoors in an enclosed factory setting, where the materials  used to build the homes are not subject to adverse weather during construction.  

Most building contractors can finish erecting a house in as little as 1-2 weeks, though it may take up to 4 weeks or more for local  contractors to finish building the dwelling on-site once it has been  delivered.

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2. Differences Between Modular and Site Built

Modular homes are not the same as site-built homes, which contractors create 100% at the build site.   That means the
contractor must collect all the materials for a house and built it on-site.   Like a modular home, the site-built home must conform to all regional, state and local building codes.   Many refer to site-built construction as stick-built homes.   Stick built housing is also well-built and designed to last a lifetime.

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3. Difference Between Modular and Manufactured

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Manufactured housing is another form of factory construction.   Many  consumers have mistakenly referred to these homes in the past as mobile homes.   Others refer to manufactured homes as trailers.   Manufacturers do build these houses in a factory like modular homes on a steel chassis.  

The manufacturer then transports sections of the home to the building site as completed.   These dwellings are usually less expensive than both modular housing and site built housing, in part because they don’t come with a permanent foundation.   Trailers and mobile homes are more likely to depreciate than modular or site built homes.

4, Advantages of Modular Construction Over Site Built

Modular homes offer many advantages over traditional site built dwellings. Many consider modular homes a hybrid breed of housing.   Not a manufactured house and not a site built house, these homes offer consumers multiple benefits including costs savings, quality and convenience.   In many ways modular homes surpasses site built housing in quality and efficiency.  

Modulars have grown up. They are more and more becoming a mainstream  selection for first time and secondary homebuyers.   Most people now realise they don’t’ have to give up design quality or customization to buy a prefabricated house.   One of the biggest misconceptions people have of prefabricated housing is they are look alike.   “Boxy” is not a word that can begin to describe prefab dwellings. In fact, more suitable descriptions of these buidlings would include: “Elegant, durable, customised and high-class”.   Many people find they can afford to include more specialization and customization when they buy a factory built house over a traditional stick built construction.  

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5. Cutting-edge Designs

Looking for a building design with a little pizzazz?   You need to check out the latest architectural designs associated with prefabricated buildings.   Firms are now building more    elegant and unique designs to meet the increasing demands of selective customers.   People are selecting modular designs over stick built designs to build their dream homes.

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6. Customised Design and Modification

There are hundreds of companies that offer modular prefabricated construction kits and plans, and most employ various architects and specialized designers to help customize your  home.   That means you have more choices and a wider selection of designers to choose from.   If you don’t find a style you like with one designer you can often move onto another, without even switching  manufacturers.  

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7. Huge Range of Selection

Its always best to select a home that matches your lifestyle and design preferences.

8. Rapid Customisation  

These are often the ideal selection for homeowners in need of a speedily designed homes.   You simply can’t build a dwelling faster.   Site built housing can take months to design and build.   A manufacturer can design and place a prefab house in a few short weeks. You can pick from just as many different styles as you would a site built home if not more, but don’t have to wait weeks for contractors to build your custom house.

9. Precise Budgeting and Timing

Yet another benefit of these designs is the lack of guesswork involved.   You don’t have to worry about how something will look.   You know that everything will arrive to the build site complete and you will know the exact outcome. You also don’t need to worry about unexpected expenses, which is commonly the case with site built homes.   With a prefabricated house, you know exactly what your home will cost and can control that cost from the point of buying to final construction.   This isn’t the case with stick built housing. With stick built housing you also have to worry about surprises in the middle of construction.   It isn’t uncommon for example, for a contractor to quit in the middle of a project.   If this happens you have few choices.  

Your home will sit partially built until you are able to find a new construction team.   This alone may cost you valuable time and money.  

10. Improved Energy Efficiency    

Many prefab houses also come with what manufacturers call the “Energy Star” certification.   This is a national company that promotes energy efficiency.   Buildings with this label use 30-40 percent less energy yearly than traditional stick built housing.  

This saves you time and money.   Some key features of prefabricated housing that help improve energy efficiency include tight installation,  high performance and weather resistant windows, controlled air systems and duct systems, upgraded air-conditioning and heating units and use of efficient lighting and heating appliances.   As a bonus, these features not only save on annual energy costs but also improve the quality of your indoor air. Think energy efficiency isn’t significant?   Think again.   Over the lifetime of your house you could save thousands of pounds  in energy bills by buying a prefabricated dwelling.

11. Design Modification is Easier  

Most prefab homemakers now use computer aided design systems when conducting operations.   This adds to the efficiency of construction and improves the appearance and architecture  of homes.   Prefabricated construction ranges from plain vanilla styling to intricate and complex modern designs.

12. On Time and  on Budget    

Perhaps the two biggest features or benefits of prefabricated housing that manufacturers hone in on are the speed that  they can be built with and the competitive pricing they can offer on the final product.   This is one reason that modular homes are gaining popularity.  

13. Appreciate in Value

These dwellings also appreciate much like site  built housing designs.   Most homeowners are interested in building value in their house over time.   Prefab housing afford you the opportunity to do this (keep in mind however much appreciation is dependent on real estate location).   Select a good build site and your house will gain significant value over time. Other factors may also affect appreciation including landscaping and how well the house is cared for year after year.   These factors also affect site built housing.   Unlike mobile homes, which depreciate, a modular homeowner can expect to gain value from their home year after year. Study after study suggests that modular homes appreciate just as well as site built homes.   They are also just as easily insured and financed.

As far as risk goes, you are no more at risk buying prefabricated housing than site built construction.

Modular Home Facts

  • Modular homes appraise the same as their on-site built counterparts do.
  • Modular homes can be more easilly customised.
  • Most modular home companies have their own in-house engineering departments that utilize CAD (Computer Aided Design).
  • Modular home designs vary in style and size.
  • Modular homes are permanent structures – “real property.”
  • Modular homes are considered a form of “Green Building.”
  • Modular homes are faster to build than a 100% site-built home.
  • Home loans for modular are the same as if buying a 100% site-built home.
  • Insuring your modular home is the same as a 100% site-built home.
  • Modular homes can be built to withstand 175 mph winds.
  • Modular homes can be built for accessible living and designed for future conveniences.


Would you consider a modular home for yourself, or are you more of a traditionalist?

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50 Quotes to Inspire Successful Leadership

Most people  believe  that the key to successful leadership is influence, not authority. Do you agree? The answer to that question, it seems, lies in whether the goal is to get others to work from a place of compliance or from a place of commitment  which underlines the difference between influential leadership and authoritative leadership.

Working within an influential leadership model, committed employees will give up discretionary time to solve problems, serve customers, and think creatively. On the other hand, people working under command and control, as we more commonly know it will only work to achieve compliance, doing only what needs to be done to get by.

As a  leader  you  must realise that every  decision  you  make  influences your  next five decisions.  Fortunately, great leaders are made, not born.

Maximise your effectiveness by emulating these words of wisdom that will motivate you in  achieving your goals  and  overcoming your fears:

  1. Build your own dreams, or someone else will hire you to build theirs — Farrah Gray
  2. Perfection is not attainable, but if we chase perfection we can catch excellence — Unknown
  3. proverb is to speech what salt is to food — Arabic Proverb
  4. Hold fast to dreams,  For if dreams die  Life is a broken-winged bird,  That cannot fly — Langston Hughes
  5. Remember no one can make you feel inferior without your consent — Eleanor Roosevelt
  6. We can easily forgive a child who is afraid of the dark; the real tragedy of life is when men are afraid of the light — Plato
  7. Every strike brings me closer to the next home run — Babe Ruth
  8. If I had six hours to chop down a tree, I’d spend the first four hours sharpening the axe — Abraham Lincoln
  9. If you look at what you have in life, you’ll always have more. If you look at what you don’t have in life, you’ll never have enough — Oprah Winfrey
  10. I can’t change the direction of the wind, but I can adjust my sails to always reach my destination — Jimmy Dean
  11. Believe you can and you’re halfway there — Theodore Roosevelt
  12. Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do, so throw off the bowlines, sail away from safe harbour, catch the trade winds in your sails. Explore, Dream, Discover — Mark Twain
  13. To handle yourself, use your head; to handle others, use your heart — Eleanor Roosevelt
  14. Too many of us are not living our dreams because we are living our fears — Les Brown
  15. Whatever the mind of man can conceive and believe, it can achieve —  Unknown
  16. I am not a product of my circumstances. I am a product of my decisions — Stephen Covey
  17. When everything seems to be going against you, remember that the airplane takes off against the wind, not with it — Henry Ford
  18. The most common way people give up their power is by thinking they don’t have any — Unknown
  19. It is during our darkest moments that we must focus to see the light — Unknown
  20. Don’t judge each day by the harvest you reap but by the seeds that you plant — Robert Louis Stevenson
  21. The only way to do great work is to love what you do — Steve Jobs
  22. Change your thoughts and you change your world — Unknown
  23. The question isn’t who is going to let me; it’s who is going to stop me — Ayn Rand
  24. Remember that not getting what you want is sometimes a wonderful stroke of luck — Dalai Lama
  25. You can’t use up creativity. The more you use, the more you have — Maya Angelou
  26. I have learned over the years that when one’s mind is made up, this diminishes fear — Rosa Parks
  27. I would rather die of passion than of boredom — Vincent Van Gogh
  28. A person who never made a mistake never tried anything new — Unknown
  29. If you want to lift yourself up, lift up someone else — Booker T. Washington
  30. Limitations live only in our minds. But if we use our imaginations, our possibilities become limitless — Unknown
  31. Certain things catch your eye, but pursue only those that capture the heart — Ancient Indian Proverb
  32. How wonderful it is that nobody need wait a single moment before starting to improve the world — Unknown
  33. The only person you are destined to become is the person you decide to be — Ralph Waldo Emerson
  34. We can’t help everyone, but everyone can help someone — Ronald Reagan
  35. Everything you’ve ever wanted is on the other side of fear — George Addair
  36. Nothing will work unless you do — Maya Angelou
  37. I alone cannot change the world, but I can cast a stone across the water to create many ripples — Mother Teresa
  38. What we achieve inwardly will change outer reality — Plutarch
  39. Courage is being scared to death, but saddling up anyway — John Wayne
  40. Success is walking from failure to failure with no loss of enthusiasm — Winston Churchill
  41. It always seems impossible until it’s done — Nelson Mandela
  42. Successful and unsuccessful people do not vary greatly in their abilities. They vary in their desires to reach their potential — John Maxwell
  43. Without ambition one starts nothing. Without work one finishes nothing. The prize will not be sent to you. You have to win it — Ralph Waldo Emerson
  44. There are no traffic jams along the extra mile — Roger Staubach
  45. Dreaming, after all, is a form of planning — Gloria Steinem
  46. Stealing someone else’s words frequently spares the embarrassment of eating your own — Peter Anderson
  47. The Book of Proverbs are the cream of a nation’s thought — Unknown
  48. Life is 10% what happens to me and 90% of how I react to it — Charles Swindoll
  49. The most difficult thing is the decision to act, the rest is merely tenacity — Amelia Earhart
  50. When I was 5 years old, my mother always told me that happiness was the key to life. When I went to school, they asked me what I wanted to be when I grew up. I wrote down “happy”. They told me I didn’t understand the assignment, and I told them they didn’t understand life — John Lennon

 

 

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Playing God: Swedish Train operator uses Big Data to ‘avoid train delays that haven’t happened yet’

In a sign of things to come, a Swedish train operator is using new technology that employs big data to predict the entire commuter train system two hours into the future.

Welcome to the world of “Big Data.” We have more information at our fingertips than any generation in history. We live in the world of “Big Data.” That is the new way people are trying to describe this sea of digital facts, figures, products, books, music, video, and much more. Twitter, apps, Facebook–they’re each giving science new ways to look at what people do and why.

“Hopes, fears, and ethical concerns relating to technology are as old as technology itself.”

We actually welcome some aspect of Big Data. These mysterious data successes (or accidental successes) are easy to see as a kind of Big Brother future, where technology can track your every move and report back to ”¦ someone. However, StockholmstÃ¥g, the train operator is using new technology that employs big data to predict train delays before they happen.

“The Commuter Prognosis –  A Social Scientist’s Dream Come True.”

The mathematic algorithm, called “The commuter prognosis” was  developed in Stockholm, Sweden.

When a train is not on time the algorithm forecasts disruptions in the entire network by using historic big data  to  prevent the ripple effects that actually causes most delays.
Wilhelm Landerholm the mathematician who has developed the algorithm said:

“We have built a prediction model, using big data, that lets us visualize the entire commuter train system two hours into the future. We can now forecast disruptions in our service and our traffic control center can prevent the ripple effects that actually cause most delays.”

The algorithm has been tested but is not currently being  used by traffic controllers.

How  does it work?

The key to the model is a large  amount of historical data. The model works similar to a seismograph, an instrument that measures and records details of earthquakes, such as force and duration, but instead identifies late train arrivals. When this happens, the system  uses historical data from previous occurrences to forecast the likely  impact on the entire train network.

Real-time public transportation information is already used around the globe, however, traffic control centers still typically assess  delays manually to try and prevent further problems in a network. The commuter prognosis system, on the other hand, will forecast these delay effects instantaneously  and provide a prediction of how a single or multiple  disturbance might  affect  the whole  train network. The  commuter prognosis system could change how traffic control centers operate all over the world.

“The Effects of One Delayed Train Can Quickly Multiply Within a Train Network”

Imagine that “The commuter prognosis” forecasts that a train will be 10 minutes late to station C in two hours. To deal with this the traffic control center issues a new train from station A that will arrive on time at station C. As soon as the new train has been put in motion the algorithm re-calculates and gives the traffic control center a new forecast for the entire train network within minutes.”

The most important benefit of “The commuter prognosis” is that it  provides for a more punctual public transportation.

“The commuter prognosis” will be available in a smartphone app based on the original model. The app will integrate with other transportation big data to make commuting easier and  will indicate which coaches are more or less crowded.

Big Data, Ethics, and Religion

These stories remind us that even though companies and governments are doing amazing things with data, it’s at best imperfect. The algorithms and programs they use to filter and respond to data are at least as fallible as the human beings who designed them.  We can also see its complexity and failures as evidence of the amazing omnipotence of our God – who doesn’t make errors and who knows right where to find us, even inside a great fish or the depths of hell.

The arrival of big data has already brought with it numerous questions that have yet to be properly addressed. These questions are methodological, epistemological, and ethical, and they concern (inter alia) the ways in which data is collected, stored, interpreted, represented, and traded.  A further complication is a speed with which data science is advancing, which means that (for example) the application of legal and ethical restrictions to the practice of that science will always risk being several steps behind the point that it has currently reached. There are indications that we are currently sleepwalking towards a situation in which the commercial exploitation of big data routinely increases social division, and renders privacy a thing of the past.

Ket factors

  • A mathematical model interprets big data to forecasts for each train in the train network.
  • The commuter prognosis can warn about delays two hours before the departure or arrival actually takes place.
  • The commuter prognosis calculates how the delay affects other trains in the system.
  • The purpose of “the commuter prognosis” is to make life easier for traffic control centers and to give passengers  a better service.
  • In the future, the algorithm will be potentially adaptable for more types of public transportations and cities.
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The Golden Gate City’s out-of-control Housing Market: San Francisco Shack Just Sold for $1.2 million

The listed property at 16 De Long Street in San Francisco that sold for $1.2 million. Courtesy of Vanguard Properties

Long Way from Home: The Housing Crisis Lingers On “Distinguished home in need of work” as  listed with Vanguard Properties “Housing Special.” However, is this property a rich man’s dream or worst nightmare?

With rotting wooden shingles, peeling paint and boarded-up windows, this 1906 single-story home need’s a lot of work. But the price is what had people talking. The asking price was  $350,000, for 2 bedrooms, one bath, and a mere 765 square feet, about the size of a hotel suite.

The Golden Gate City’s out-of-control Housing Market

Located at 16 De Long Street in the more affordable Outer Mission district, the house price reflects  the out-of-control  real estate market in San Francisco. Since 2012, the city has seen a 103% increase in housing prices.  The average apartment in the city rents for $3,500 a month, and the median housing price reached an all-time high of $1.2 million and it’s expected to climb another 5.2% in the year ahead, according to Zillow. Manhattan rents in August, by comparison, topped $3,460, according to StreetEasy, a New York real-estate research firm that’s part of the Zillow Group Z, -2.95% .

The San Francisco Real-estate Market Is Probably the Hottest Market in the U.S Right Now

Not surprisingly, given the state of the actual building, the home’s value isn’t in the structure but in the land that it sits on.

Thinking of Moving to San Francisco to Make It Big in the Tech Industry

With the influx of tech workers driving up the housing market, along with a strain on the supply of houses to meet demand, it is understandable to brokers in San Francisco  why prices seem so unrealistic.

$1.2 Million Is What It Costs to Buy a Shack in San Francisco, Literally

The home is an earthquake shack. These tiny homes were built after the 1906 earthquake to house people who lost their residences. Many still remain around the city and have been restored, updated and refurbished.

According to a report from  Curbed San Francisco, the house had rats, black widows, mold, and hundreds of bottles of urine  inside it when it went up for sale and was subsequently  sold for $1.52  million.

The tiny home backs on to the eight-lane 280 freeway and a Bay Area Rapid Transit, or rail line that begins running at 5 a.m. and doesn’t stop until nearly 2.a.m.

On the flip side biking it to the local  station only takes eight minutes and getting on to the freeway isn’t difficult either, if you want to get out of town or into the city by car. Three golf clubs are also nearby.  And, for those late-night snacks, a convenience store stands just a few steps away at the corner of De Long and San Jose Avenue.

So maybe it wasn’t  such a bad deal, after all? or is it a sign  of how crazy the San Francisco real estate market has become?

Michael Lewis, writing for The New Republic, describes the negative effect of wealth on the moral behavior of wealthy people. He cites studies in which wealthy people, again and again, demonstrate a sense of entitlement and disregard for justice.

“As the recession lifted, poor and middle class Americans dug deeper into their wallets to give to charity, even though they were earning less. At the same time, according to a newChronicle analysis of tax data, wealthy Americans earned more, but the portion of the income they gave to charity declined.”

So rich people, statistically speaking, demonstrate disregard for their fellow citizens and the laws of the land. None of this should come as a surprise for Christians. Jesus warned of the dangers of wealth (Matthew 13:22) and of course Paul warns in 1Timothy, “the love of money is the root of all evil.” And yet solving the problem of extreme wealth in America is not so easy as spouting Bible verses. And for wealthy Christians, the solution to the problems of extreme wealth comes from entrusting that wealth to the Lord to the benefit of all.

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Spectacular Architecture and Infrastructure Projects That Take Your Breath Away

DBOX for CIM Group & Macklowe Properties

The advent of the ‘megaproject’ is truly upon us as such projects become a key feature of city landscapes.

The Empire State Building, the Panama Canal, the Regatta Hotel in Indonesia – these are just a few of the architectural and infrastructure wonders of the world that you probably take for granted. With the National Geographic putting images on the map and now the Internet fuelling easy access to pics, it’s easy to forget how difficult these projects are for engineers to build. Behind the scenes, much goes on to tackle the making of a magnificent bridge, building or highway and byway. Here are a few such projects that should cause you to sit up and have your breath taken away because of their grandiosity, complexity and stunning beauty.

New York Residential Building

DBOX for CIM Group & Macklowe Properties
DBOX for CIM Group & Macklowe Properties
DBOX for CIM Group & Macklowe Properties
DBOX for CIM Group & Macklowe Properties

Still in the building stages, a residential towel at 432 Park Avenue is set to be one of the most expensive addresses in the U.S. Taller than the Empire State Building by 50 meters, the 426 meter building is considerably large, but plans to host just 104 apartments. Living in the building will cost you, though. If you’ve got $17 million you can start the process of bargaining for an apartment; however, the best apartments are the penthouses that will span an entire floor and go for $82 million or more.

The Panama Canal

Now that the Panama Canal has been in place nearly 100 years, we take for granted how it revolutionised trade and travel. The recent billion dollar improvement projects increased the length and width of the canal, adding more locks at both ends of the passageway connecting the Atlantic and Pacific oceans. Now that even bigger container vessels can travail the Canal, neighboring Nicaragua is in the planning stages of building its own canal – to the tune of $40 billion. The best and brightest engineers harnessed real ingenuity to figure out how to tame Mother Nature to advance the cause of expanding travel.

Hong Kong Zhuhai Macao Bridge, China

Hong Kong Zhuhai Macao Bridge, China
Hong Kong Zhuhai Macao Bridge, China

 

Hong Kong’s bridge project is one of the largest most complex in the world and uses a series of tunnels and bridges to connect three major cities: Hong Kong, Zhuhai and Macau. Costing more than $10 billion to build, it will drive the freight land transport needs of the region as well as facilitate the movement of passengers between the cities. The three-lane bridge and tunnel roadway includes the construction of two artificial islands to accommodate the building of the various roads involved with the project.

These and other architectural projects that defy gravity, plunge the depths of the ground and cover the sea are a wonder to behold. They put the best of human genius to work to solve complex problems such as how to build a bridge over a considerable expanse of water and accommodate tunnels under the water. The creativity of the world’s engineers and architects are put to the test, and they come up as winners every time with projects like the Park Avenue residential building, the Panama Canal and The Hong Kong-Zhuhai-Macau Bridge.  However, the human mind still can’t come close to understanding the vastness of the whole universe. But as we get better at it, we clearly see two things: how tiny and insignificant man is by himself—and just how huge and wonderful is the plan that God most have for us!

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Professional Consultancy Responds to Health and Social Care Challenges

As people in the UK live longer, demand for residential care and nursing homes is growing, as are our expectations of the standard of living they will provide.  Dean Jones  offers insights about the value a professional consultancy has for overcoming the challenge and driving value for patients.

The current state of affairs

As a result of some well-broadcasted care scandals that attracted extensive, and in some cases, damaging media attention, the government has responded with cuts that are impacting local authority (LA) fees and resulting in far tougher  Care Quality Commission (CQC)  policies.

Office for National Statistics (ONS)  Projects That by 2035 There Will Be 3.5 Million Uk Residents Aged 85 and Older, Compared to Only 1.4 Million Currently

In spite of this, the “extra-care” – or Residential Elderly Care (REC) sector – continues to overcome these challenges, attracting new investments, particularly into new-build care homes. These are specially designed, owner-occupied, self-contained housing, often with round-the-clock support and meals and sometimes with nursing assistance.

A typical pattern is for owner-founded care home operators to reach a growth limit, based on the founder’s management capacity, access to capital and appetite for risk. They cease to invest in new capacity and don’t benefit from economies of scale which can be passed on to commissioners. Public markets typically do not fulfil their function as a supplier of capital in the case of healthcare services, because they generally demand relatively modest gearing.

There’s a widely recognised need across all health and social care market segments for innovation and system change, as well as capital investment in new services. A private equity investor is well placed to leverage technical services to strategically programme and project-manage Residential Elderly Care (REC)  public real estate schemes across their entire lifecycle.

Supply and demand challenges

Today, professional healthcare businesses and registered social landlords (RSLs) are the main providers of new capacity, period. Since 2008, private and voluntary status providers, who service 92 percent of all Residential Elderly Care, have reported an upswing in demand and occupancy. Paradoxically, as adult social care budgets are decreasing and the provision of residential care by the  NHS  and local authorities has shrunk, the number of UK people who require help and support is rapidly increasing.

The Increasingly Ageing Population of the Uk Appears to Be Underpinning the Overall Rise in Rec Capacity and Occupancy

While Local Authorities (Las) are seeking to divert placements to inexpensive non-residential/domiciliary-based alternatives, the increasingly ageing population of the UK appears to be underpinning the overall rise in REC capacity and occupancy. Britons are living longer than ever. The  Office for National Statistics (ONS)  projects that by 2035 there will be 3.5 million UK residents aged 85 and older, compared to only 1.4 million currently. The cost of caring for these residents is also forecasted to increase. For example, caring for a person with dementia will increase to $1,142,677 by 2025 and $2,092,945 by 2051. In total the government estimates that 1.7 million more adults will require some type of care and support over the coming decades.

As a result, the current number of nursing and residential care homes in the UK (over 381,000) will need to almost double over the next 20 years to cope with rising numbers of people aged 85 or more.

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A bright future?

The demand for care will continue to rise as a result of life expectancy increasing and ageing. A robust REC independent sector arises primarily from the net increase in residential demand, and more recently, improved occupancy. These are the result of a number of competing forces:

  • Demographics, with the ageing population expected to drive the demand for health and social care.
  • Outsourcing, the long-term transfer of residents from LA homes to independent care homes.
  • Severe financial constraints, at least over the next five years, as the government – which pays for the bulk of health, social care and special education – seeks to eradicate the public expenditure deficit and restrict new builds.
  • Outdated assets, or older care homes that no longer meet needs.
  • Consolidation, a trend within segments of the independent sector.
  • Maturity, against a currently immature healthcare market.
  • Efficiency, highlighted by the “Nicholson challenge” for the NHS to make £15 to £20 billion in efficiency savings between 2011 and 2014. (It costs the NHS approximately £3,000 a week to care for elderly patients with no clinical need to be in a hospital ward. By contrast, it comes to about £1,000 per week for a residential care home provider.)
  • Demand and Occupancy. Unless the supply of new builds increases (currently by approx. 7,500 beds p.a.), it’s possible that some regions may see bed shortages, driving up LA fees.
  • New Technology. Progressive management capabilities in leveraging technology and strategic collaboration will constitute the formula for success and sustainability in the new healthcare business environment.

While a longer life is welcome news for millions of Britons, it could ironically trigger a public service meltdown as our national health system is stretched to its breaking point. Local authorities and NHS trusts retain a significant role in delivering services, with 75 percent of nursing home places funded by the public sector. There exist ever-increasing opportunities for private care providers to take some of the strain from NHS and ease bed-blocking by caring for patients, mostly elderly, in a residential setting when there is no clinical need to be in a hospital ward.

The REC Sector Could Potentially save the Nhs Billions of Pounds.

A combined approach to health and social care and some innovation is required for this savings to become a reality. In addition, Care Home Operators have a unique opportunity to grow their businesses and benefit from economies of scale, leveraging the expertise and resources of a professional consultancy. In doing so, they’ll have necessary resources and systems to bid for significant re-provision of services tendered by local authorities.

About Dean Jones

Dean is an Associate in AECOM’s Programme Leadership Practice. Dean joined AECOM from Care UK, the UK’s largest independent provider of health and social care, where he was a Programme Manager and delivered a £250m investment growth programme over 2012/15 which increased Care Uk’s number of homes circa 33%. Dean was also Programme Manager for a £60m Suffolk programme to build ten new care homes and ten day clubs, bringing much needed additional nursing and specialist dementia care to the Suffolk community.

 

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