The biggest mall in Scandinavia opened in Solna today. It’s been built by a big Swedish company called Peab and from what I have heard, this 686 420 318 $ project has been a tough one. I mean, I find it challenging to keep deadlines and sort out all challenges when managing a 50 000 $ renovation of a house..
But. I tend to meet my deadlines because I know every month without rental income will cost me money and if I had someone else managing the project for me, Id expect them to deliver for that same reason.
According to the newspapers, the stock of the building company that built Mall of Scandinavia is taking a fall after the build ended up costing the company a lot more than expected. My friends wife who has been working on the project said most of those expenses is a result of not keeping their deadlines. Pretty sure that’s not her fault as she is super clever, but, I do know that being behind schedule comes with costs.
If it’s me restoring a house I want to rent, the cost is a lack of rental income. If it’s a big company like Peab building a place like the Mall of Scandinavia, the cost it a penalty that has to be payed to the buyers. If I want to avoid the cost of not getting rent or Peab wants to avoid the penalty, the alternative cost is for more manpower and equipment to get everything done in time.
And now we have just spent a few minutes reading about me thinking out loud after reading some business news online. I hope you are having a good day! I’m off to the gym.