Every project owner wants a successful construction project—one that finishes on time, on budget, without defects in design or construction, and with minimum conflict among the project parties. Construction cost overruns can convert a potentially successful project into an unprofitable boondoggle. Controlling cost overruns is key to achieving a successful project.

Cost overruns on construction projects seem to be the rule, not the exception. Research by Dodge Data & Analytics shows 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.