Construction cost overruns seem to be the norm, not the exception. Research by Dodge Data & Analytics has consistently shown that projects are frequently delivered over budget and late. According to a McKinsey & Co. survey, large projects across asset classes typically take 20% longer to finish than scheduled and are up to 80% over budget. Cost overruns may be caused by poor estimates; overly ambitious scopes, schedules or budgets; weather conditions and/or human errors, among other things. Controlling overruns is key to achieving a successful project.

Pre-Construction

Controlling overruns starts at the initial stages of the project by thinking through every detail, planning out every contingency and making sure that all project players know what to do and are coordinated. The Dodge study referred to above concluded that owners who are educated and informed about the construction process, and who demonstrate strong and effective leadership and communication, have greater likelihood of avoiding project overruns.