Broken Buildings, Busted Budgets: How to Fix America's Trillion-Dollar Construction Industry

Maybe I can not be objective about this book. LePatner cites my book on running construction companies about fifty times. That's flattering. On the other hand, he cites me only when he borrows my criticisms of our building industry. He never cites me when he is proposing solutions, though many of his resemble those my book offers and are, in fact, practiced by many builders. That irks me a bit. Even so, I give LePatner's book 5 stars. Here's what I wrote about it in the Resources section of my new book, CRAFTING THE CONSIDERATE HOUSE: "Rightly criticized for being overly redundant and for a lawyer's bias toward his clients (owners as opposed to builders and designers), LePatner's book is, nevertheless, an exceptionally vigorous exposition of the ailments of and possible cures for the construction industry." In fact, the book is so energetic and provocative it's downright fun to read. LePatner takes ideas for remodeling the construction industry much farther than my book does. When I write my next edition I will borrow back some of my ideas along with his added insights.

As one of the leading construction lawyers in the nation, Barry Le Patner doesn't necessarily expose the faults of the $1 trillion construction industry as much as he lays it out for public view. In writing this book he risks being labeled a pariah in the construction industry for biting the hand that feeds him. Of the $1.23 trillion spent on construction in the U.S. last year, La Patner points out the industry wastes $120 billion, enough money to set Social Security on the path to financial solvency. What's the root cause of the waste? La Patner emphasizes the two most hated words an owner hears from a general contractor: cost overruns and change orders. The mom and pop construction industry purposely bids low on a project to lock in a mutable contract. Once in hand, the contractor becomes a monopoly that can run roughshod over the owner with schedule delays and change orders that almost guarantee a large profit for the general contractor. This is why we see so many articles in newspapers about delays and huge overruns on projects. A recent example of this waste is the Big Dig in Boston. $12 billion over budget, years late, and it leaks. Mr. LaPatner's solution seems simple, fixed-price contracts and consolidation of the mom and pop small contractors into a larger corporation that will take responsibility for all the construction tasks. He also recommends an intermediary to oversee the project with the interests of the owner in mind, and not the contractor, This well-written, 200 plus page book will not threaten James Patterson's novels for domination at the beach next summer, but it may have the potential to influence public opinion of the wasteful construction industry just as Rachel Carson's book, Silent Spring influenced and kick-started the environmental movement. It's probably too late to change the ways and habits of the entrenched contemporary construction industry, but it's not too late to influence the minds of the future architects and engineers attending the nation's universities. This book should be required reading of those students who will someday steer the beleaguered industry.

Barry LePatner's essay on the state of the failed construction world in the US reminds us that not all things are created equal. The concepts of financial leverage, specialization of trades, diffusion of risk, and vertical/horizontal integration are explained so the lay person can grasp the intent of the book. The essential truths of "time, price, and quality" have been replaced by "time value of money" and this theme is quietly woven throughout the book. No single volume can elucidate the myriad forces affecting an industry some call the `second oldest profession,' but Mr. LePatner's admirable attempt to uncover the sources of inefficient and cost overrun construction makes us want to understand more. It used to be there was an `art' to construction that matched the glorious designs of prolific architects and what was built was a source of pride for all. Mr. LePatner's book is both nostalgic and forward thinking; it offers us glimpses of the malaise that characterizes the antiquated design-bid-build business model. Not since Dana Cuff's "Architecture: The Story of Practice"--the exposé about the esoteric underpinnings of the architectural profession--has an essay attempted to exorcise the silent demons lurking in the counterpart profession of construction. If asymmetric information is a source for unequal footing at the outset of every project, perhaps the economic context of construction too is antiquated. I appreciate the boldness with which Mr. LePatner argues his position. As a developer and financier of high-end real estate, I empathize with each scenario illustrated. The lessons and practical advice to owners to overcome false starts and overbudgets are put forward with a studied determination guided by good intentions. Will Mr. LePatner's book single-handedly be the catalyst to fix the construction industry? No one can predict the future, but we can't say he didn't warn us. -Roy R. Pachecano, Real Estate Columnist, BUILDERnews Magazine

Never has a book so thoroughly explored the troubles plaguing an industry. But as sobering as the book is, it's also encouraging. Mr. LePatner proves that a reformed construction industry doesn't have to be some kind of unattainable utopia. He lays out what we can all do, engineers and architects alike, to make positive improvements in the industry. Now it's time to make his suggestions a reality.

LePatner presents a courageousness expose on the enduring problems within the design and construction industry and offers a well constructed scenario on what can be done to fix these problems. This book will become the "baseline" for all others on the subject which follow. Well written and researched. A great read ....