The audience had been warned of the risks of prefabrication, briefed about the complications of P3s and enlightened about recent studies whose author emphasized that contractors must avoid a growth-at-all-costs business model.
That’s when Timothy W. Triplett, the senior risk executive at Black & Veatch and a keynote speaker at ENR’s Risk & Compliance Summit on Sept. 30th at Georgia Tech in Atlanta, said that his company planned to expand its annual revenue from $3.5 billion to $7 billion by 2020.
At a required growth rate of around 20% to 22% per year, one audience member pointed out, the growth goal itself invites risk-taking.
Triplett, who is an attorney, is president of Black & Veatch’s legal and risk management division at a time when the company, once dominated by engineering services, performs more than half its work as a construction manager and contractor. He has helped put in place a detailed risk-management framework. It includes, for example, procedures to make sure higher-level review is made before any contract is accepted that carries liquidated damages. And to assure that higher-level managers stay involved with sensitive overseas projects and the problems they entail.
And while the various guidelines and reviews are carried out, Triplett said, Black & Veatch must be sure not to stifle the entrepreneurial energy that will be needed to reach the company's goals.
Growth and Decision-Making
Although the decision to proceed on certain projects should be made by both the operating divisions and corporate divisions in unison in light of the company's overall risk portfolio--that decision needs to be made in a way that, Triplett said, does not become an obstacle to the firm's growth.