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Delays and Overspendings

The document identifies several factors that commonly lead to delays and cost overruns on construction projects: poor organizational structure and communication, weak performance management, non-universal sharing of information, gaps in planning and task coordination, poor short-term planning, inadequate risk management, and limited consideration of alternative teams that may be better suited to complete tasks. Safety issues are also highlighted as a concern, as work injuries can significantly impact schedules and budgets.

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Wei Yihui
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63 views1 page

Delays and Overspendings

The document identifies several factors that commonly lead to delays and cost overruns on construction projects: poor organizational structure and communication, weak performance management, non-universal sharing of information, gaps in planning and task coordination, poor short-term planning, inadequate risk management, and limited consideration of alternative teams that may be better suited to complete tasks. Safety issues are also highlighted as a concern, as work injuries can significantly impact schedules and budgets.

Uploaded by

Wei Yihui
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Delays and Overspendings

A few important factors of these construction problems have been identified and they are the
following:

 Bad Organizational Structure


The construction project management practice’s decision making and procurement
processes do not have the capacity for the current speed and scale demand.
 Deficient Communication
The lack of a central data system results to delayed and inconsistent sharing of
information and reports. This leads to subcontractors, contractors, and owners not having
a common understanding of the project’s state at any given time.
 Weak Performance Management
Midstream changes, inadequate communication and lack of accountability lead to
unresolved issues piling up.
 Non-Universality of Information
When a different team carries over work to a different team for the next process and when
a problem comes up arising from the precious process, the construction project manager
may have a hard time understanding how to proceed. For example, the procurement team
deals with complicated contracts and when a problem with the contracts arise while in the
middle of construction, it may confuse the CPM (construction project management) lead.
 Connection Gaps
Planning spans a lot of aspects; it includes high-end preparation and daily tasks. If daily
work does not align with the day’s goal, schedulers should be notified but often are not.
This system ends in delays due the absence of real-time updating of task priorities.
 Poor Short Term Calculations
Another construction issue is that companies are good at planning and forecasting
outcomes in the next 3 months but fail to identify and calculate work in the next week or
two. This often results to delays that may be caused by unavailability of an equipment or
materials.
 Inadequate Risk Management
Construction managers and contractors are usually looking into long-term risks of
planning, design, construction, operations, and maintenance. Risks that just pop up on the
job are usually overlooked. These tiny construction issues may just have a snowball delay
in decision making and compound to major schedule overruns.
 Limited Skill Capabilities
Another cultural problem in construction is that companies tend to work with previous
people and teams and fail to connect with more capable firms and manpower suited for
the job.

Safety Issues
Another aspect to look at is safety management practices. Work injuries can set project
schedule back by one week or even more and may cause budget overspending to compensate
for its outcomes.

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