Are your jobs running over budget or behind schedule? You’re not alone. Less than one-third of construction projects in the last three years came within 10% of budget, according to Klynveld Peat Marwick Goerdeler (KPMG). The McKinsey Global Institute discovered that large projects run 20% over schedule and up to 80% over estimate.
What’s the cause? You can blame lousy weather, picky clients or bad luck, but poor planning is often the source of the problem. Renewing your focus on project management can keep schedules and budgets on track.
Before you respond to an RFP, consider a feasibility study. Are the project timeframe and requirements realistic? Can you make money? Are the required labor, material and equipment resources available? Understand the risks and rewards before you commit time and energy to bidding a job, and don’t be ashamed to walk away if you can’t be profitable.