Budget Overruns And Delays!
More than 90% of construction projects run over budget and 3 out of 4 face serious delays. About 10% of the total construction costs are failure costs.* Sounds familiar? Do you want to know what might be the root cause? In most cases these unnecessary costs are the result of underdeveloped project management skills and a lack of time and experience.
The Four Pillars of Construction Project Management
Whether your company is expanding for the first time or building its 25th retail store, good project management is indispensable (in order to avoid budget overruns and delays).
It’s important to work according to a “Project Life Cycle”, which includes formal decision points, making sure that everything is cleared out at each stage of the project. It’s the project manager's job to make sure you have all the required information to make the right decisions.
We focus on four pillars that apply to any construction project:
- Careful planning (scheduling)
- Clear scope description (as early as possible)
- (and not to forget) communication to all stakeholders
These pillars aren’t rocket science, but are essential for the efficient execution of a construction project to avoid failure. Together with the Threon Construct team I’ll be diving into each pillar in a mini-series of articles to show you how we deal with them. For now let’s start with the beginning and focus on the bigger picture.
Get The Big Picture As Early As Possible
My colleague Anton Boone explains:
“The sooner the purpose of the investment is clear, the easier the scope can be maintained during execution and hence failure costs are avoided.”
Let’s zoom in on the word ‘sooner’.
Anton Boone: “The first key moment for your construction project lies in the very beginning, when investigating the feasibility of your construction project. This is the time when you should ask yourself the following questions: 1. Which company processes should be housed in my new construction project? (e.g. The orientation of a production hall so suppliers can easily deliver their goods,...) 2. How should these processes be linked with the normal operational procedures of my organization/business? And; 3. What’s in scope (and out of scope) of my building project (making things clear and understandable for all stakeholders, including myself)?”
Is Outsourcing Something For Me?
This probably all sounds very logical. But take a second or even a minute to think of your (future) construction project. Now try answering Anton’s questions.
Harder than you thought, right? If this was hard, imagine managing and controlling a money eating project. If you don’t deal with construction projects on a daily basis, you probably don’t know everything there is to know about specific regulations, permits, tender procedures, contractual terms and conditions... Let alone that you can easily control construction partners with different interests.
The Only Source Of Knowledge Is Experience
Years of hands-on project management experience across different industries combined with construction knowledge has lead us to develop Threon Construct. Only with knowledge, founded on experience, your construction project can become as successful as you envision it.
Or, as per Albert Einstein:
“The only source of knowledge is experience”