Stop the Bleeding: How Proper Project Controls Can Save Construction Companies from Cost Overruns

As you know, one of the biggest challenges that companies in the construction industry face is cost overruns. These overruns can occur due to a variety of reasons, such as changes in design or scope, unexpected issues or delays, and poor management of resources and materials.

Cost overruns can have a significant impact on the profitability and success of a construction project. They can cause projects to go over budget, delay project completion, and damage the reputation of the company. However, by implementing proper Project Controls systems and processes, companies can better manage their resources and ensure that projects are delivered on time and within budget.

Project Controls is a set of procedures and tools used to manage cost, schedule, quality, and safety on construction projects. By implementing these systems and processes, companies can monitor project costs and progress, identify potential issues, and take corrective action to keep projects on track.

One key component of Project Controls is cost management. This involves tracking project costs and ensuring that they are within the approved budget. By monitoring project costs, companies can identify potential cost overruns and take steps to address them. For example, if it becomes clear that a project is going over budget due to unforeseen circumstances, the company may need to renegotiate contracts with suppliers or make changes to the project scope to bring costs back in line.

Another critical aspect of Project Controls is schedule management. This involves tracking project progress and ensuring that it is on track to meet the project’s timeline. By monitoring project progress, companies can identify potential delays and take corrective action to ensure that the project is completed on time. For example, if it becomes clear that a project is falling behind schedule, the company may need to increase the number of workers on the project or adjust the project schedule to ensure that it is completed on time.

In conclusion, you already know the pain points of cost overruns in the construction industry. By implementing proper Project Controls systems and processes, companies can better manage their resources and ensure that projects are delivered on time and within budget. By managing costs, schedules, and quality, companies can deliver successful projects and maintain profitability in a highly competitive industry.