Construction overruns have become an industry-wide status quo in the past few years. According to a study from Engineers Daily, design errors accounted for almost 38% of disputes in construction. However, with the project budget and costing being scrutinized more so than ever before, construction professionals can’t afford to accept this as the new norm with the prevalent industry productivity issue.
To learn how to handle and address cost overruns in construction project, the first step is understanding the root cause of the problem. Generally, overruns are just side effects of even deeper issues in project management for construction- with budget and schedules not being correctly set in place during the construction phase as the top cause. Even though forces beyond human control such as extreme weather and global pandemic can impact budgets, a project overrun results from inaccurate planning and analysis before the construction even starts in most cases. Apart from better planning, technology can also be a good tool in helping reduce common factors that contributes to cost overruns to ensure maximum efficiency and profits for your construction company.
In today’s blog, we will help you keep your cost overruns to a minimum by highlighting its most common causes in construction projects. Additionally, we will also include helpful strategies and implementations to manage construction projects within budget.
Let’s dive into it.