I’m always amused when I meet a few of my developer friends for Friday coffee. The conversation inevitably turns to project delays and cost overruns—always blamed on someone else: architects, engineers, specialty consultants, operators, interior designers, contractors, and, of course, the project management consultant. The question is always the same: what penalties, legal measures, contract terms, or limits of liability can ensure everyone “plays nicely in the sandbox”? In short, how do we upgrade from a cane to a baseball bat—or even a prehistoric club?

No one likes surprises in business, especially real estate developers undertaking large, complex projects with significant capital and leverage. Price and cost certainty are critical from the outset. Traditionally, that’s meant fixing service costs with a lump-sum fee or a set number of person-months tied to a schedule. The conventional wisdom says cost certainty comes from locking in the number—and then holding people’s feet to the fire. Some go further, insisting the risk be cascaded down to every team member.