As a design-build company, our mission is to ensure that our projects are effectively on-time and on-budget. But there are many factors that can contribute to cost overruns during project delivery.

 

Here are the Top 5 issues that our experienced Project Managers solve to make sure that our projects are always delivered as promised:

1. Inaccurate Project Estimates

Project estimates play a big role in the budget and timeline planning of a project. Faulty schedules and unrealistic budgets set the tone for the rest of the project, with the possibility of unmet expectations and exceeded deadlines.

What are some reasons for inaccurate project estimates?

  1. Mathematical errors and miscalculations
  2. Vague specifications for plans, drawings, and scope
  3. Inexperienced estimators, lack of knowledge by contractors

2. Poor Site Management

On-site communication is one of the biggest factors that impact site management. The complex nature of construction projects makes communication difficult to maintain. This becomes a nightmare when the operation also lacks an experienced project manager.

According to KPMG’s 2015 Global Construction Survey, people wish for more contractor collaboration. This makes it necessary to have a good PM, to maintain and nurture contractor relationships while keeping the client’s best interest in mind.

3. Changes in Scope, and Delays in Schedule

Another common reason for cost overruns is project changes and changes in scope.
Project changes can include things that were not part of the initial budget and need to be accounted for later. These changes can be unexpected and are often out of the hands of the owner or the project manager, as in the case of material or supply issues.

The best way to prevent project changes is to plan and address potential issues at the beginning of the project. Our project managers are able to reduce the need for project changes by identifying problem areas in advance.

Changes in scope are extra requirements from the client. These are costly and generally delay the construction schedule further than planned. These changes should be addressed in the construction agreement document.
The best way to approach changes in scope is to discuss your exact space needs with the PM, thus removing confusion and the need for future revisions.

4. Lack of Project Management Experience

A good project manager should be able to see the project from start to finish and plan for potential roadblocks along the way.

Hiring an inexperienced project manager may lead to poor budget planning and delayed or missed deadlines. Ideally, your project will have various project managers working together. This is especially valuable in the planning phase because if done right it will save money and time.

5. Poor Communication

Proper communication is paramount when it comes to construction projects. This is one of the project manager’s biggest roles. They need to explain project requirements clearly and manage communication with people throughout the project.


In short, having an experienced project manager can provide you more value than saving time and money. They can anticipate the problem areas well in advance and give you peace of mind that your project is in good hands.

 

As a design-build firm, our project managers collaborate with the internal team members, the contractors, as well as the suppliers. Our effective communication ensures everyone is one the same page and keeps unexpected costs and schedule delays minimal. We address these problems at the discovery and contain them to avoid further complications. Our PMs will review estimates and prevent avoidable errors throughout the project. Concrete Cashmere has implemented solutions that ease on-site communication including using a construction management system, an effective tool used by our PMs for managing projects, finances, and clients.

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