Buy Out

It is the time during which purchase orders and subcontracts are issued. In an ideal world it takes place between estimating/preconstruction and construction. In reality, buyout often begins while a project is still in preconstruction and extends into the construction phase. Scope gaps and double ups are identified during buyout. Gaps are blamed on the estimators and double ups are stuffed in a contingency pot where the project team can use the funds to cover poor work performance or add to the bottom line later on. This money is claimed by the construction team as evidence they are performing well and adding to the bottom line. Estimating issues turn into field problems and good estimating turns into field wins.