April 1, 2021

7 Reasons Why 69% of Construction Projects Exceed Their Budgets

Fewer than one in three construction projects come within 10% of budget. Consider these 7 reasons why yours might be overspending

The run-up to an Olympic Games or World Cup wouldn’t be complete without headlines screaming about the soaring cost of building work. London 2012 overspent by 76%, Sochi 2014 by an eye-watering 289% and the Rio Games by a projected 51%.

But whether the project is a global sporting event or an infrastructure scheme of more modest size, the chances are that it will bust the budget.

As schemes get more complex, it’s becoming harder to hit deadlines, budgets and specifications. And the pressure to get projects off the ground often means corners are cut when estimating construction costs and risks.

But that’s where the excuses run out. Many projects are simply blighted by poor planning, issues with subcontractor payments or inefficiencies in the back office.

Time wasted chasing paperwork, correcting mathematical errors, manually dealing with the payment approval and certification process or just arguing over numbers can result in delays and cost overruns. At a time when construction costs are rising, cutting out these issues by using the right software is crucial.