Even when construction projects seem to be running with moderate efficiency, key stakeholders are often surprised when the project goes over-budget and runs behind schedule.

While looking at the bottom line may be hard on management’s eyes at project completion, many companies still fail to realize where exactly those extra building costs came from. “Invisible costs” like minor design modifications and the odd, minuscule engineering flaw often manifest throughout the project process.

The kicker? These major budget burners and time wasters that can be prevented.

As Project Managers we see the writing on the wall from the onset. The following are key problems present in any size of project, commercial or industrial.

 

Key Stakeholders Aren’t Always Experts

 

Management isn’t trained in how to efficiently complete a project, instead they are expected to identity the key variables of a project, i.e. overall cost and general timeline.

Project Consulting services bridge the communication gaps between design team, engineers, contractor and clients.

 

Solution: Sound Project Management

 

Management generally focuses on the big picture questions like; “What is the end goal of a project?” “What do we need to do to get there?” but don’t always have an answer for how to execute a project.

Project Managers manage “the how” by conducting periodic cost and expense analysis, project quality audits, schedule control and an array of other logistical considerations. 

Sound like a lot garble? That’s ok. Project Managers focus on the technicalities so everyone else can focus on their job at hand.

  

Estimating is a Process Not a Guess

 

Many assume estimates are speculative and difficult to measure. This is untrue.

A good estimate takes into account all the variables present in a project without exceeding the resources allocated for the estimate. Estimating is a process just like designing code is a process.

 

Solution: Comprehensive Pre-project Planning

 

Project Managers understand that there is a science behind making a project more efficient. They know that the estimating process in the pre-planning stage is crucial to the later success of the entire project. Here are two important realities to take into account in the pre-planning phase: 

1. All estimates have a known and appropriate level of accuracy. It is important to recognize that an estimate process, no matter how comprehensive, may still have unknown variables.

2. Each estimate must include appropriate contingency costs to account for the associated financial and logistical project risks. 

By keeping this in mind, Project Manager’s can communicate information extracted from estimates and analysis to manage stakeholder expectations.

Having a highly skilled project manager on your team reduces headaches down the road. The team at EPS is committed to offering the best service to Canada’s top commercial and industrial businesses. See how we managed Tim Horton’s Restaurant One on Global News.