Description

Time and cost overruns in construction projects are what everyone involved are often most keen to avoid, but Ian can tell you how careful planning and foresight can help you escape this eventuality. He covers impacts and consequences of overruns, reasons why they occur, and methods of mitigation you can employ. 

KEY TAKEAWAYS

• Time and cost are the main measure of success of the project yet also the main factors in why they fail. This can result in the investors proposed income from the investment not being realised at the right time, which can have a knock on affect on the whole life project, contractors ongoing schedule being disrupted or even overall failure.    
• Possible reasons for overruns are incomplete design, inexperienced or inappropriate professional team, unforeseen site conditions, poor contractor selection, late payments resulting in cash flow blockages, or poor site supervision.
• Client expectations and requirements are absolutely key to standing a chance of avoiding overruns. A competent management team, precise and correct scheduling, quality contractors with appropriate skills, and risk analysis are all good mitigation tools also. 
• Increasing material costs due to unforeseen circumstances are an issue, especially currently, as the upper end of the budget can be tested by not only material shortages but also unpredicted economic inflation. Waste minimisation is important.
• Poor communication is the cause of project failure in a third of cases. 

BEST MOMENTS

‘Studies have shown us that at least 60% and in some instances 80% of all projects fail in some way or another. That's a pretty damning statement on the industry and the success of the industry.'  

‘Consequences of getting this wrong are substantial.'

‘A lot of this in my opinion stems from what I've already covered in previous shows. It's getting the clients requirements crystal clear right at the very, very beginning. As I say, the phrase I've got here is ‘the cornerstone of cornerstones.'' 

‘The reasons for the overruns were incomplete design, inclement weather, variation in size and specification and it was ten years late and had a cost overrun of $95 million on an original value of $7 million.'

‘Again that's a lot of wastage up front. So what were these non-optimal activities? The culprits were fixing mistakes, looking for project data, managing conflict resolution. All of these sorts of things.' 

VALUABLE RESOURCES

https://www.ianjrogers.com/

ABOUT THE HOST

Ian Rogers is an entrepreneur running businesses in the Real Estate, Construction and Facilities Management arena. Ian has over 40 years' industry experience, as he was effectively born into construction with his father having his own building company and Ian spending time working on sites from the age of 11!. As a result Ian has seen the industry from a trades person perspective, as a chartered quantity surveyor working on large commercial projects, as a project manager and then working on structured project finance through PFI/PPP deals. This has given Ian a unique whole life approach to any project by considering the end game at the beginning.

CONTACT METHOD

https://www.ianjrogers.com/

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