Construction Project Management Services and Construction Books
  • Construction Home
  • About Paul Netscher
  • +Construction Books
    • Successful Construction Project Management
    • Building a Successful Construction Company
    • Construction Claims
    • Construction Project Management: Tips and Insights
    • Construction Management: From Project Concept to Completion
    • An Introduction to Building and Renovating Houses
    • The Successful Construction Supervisor and Foreman
    • Designing your ideal home
  • Construction Management Services
  • Book Reviews
  • Contact
  • Blog | Construction Management
  • Site Map
  • Blog | Home Improvement
  • Index of construction articles
  • Useful Links
  • Index Home Improvement

Reasons why construction projects lose money

8/5/2014

1 Comment

 
Picture

Why is your construction project unprofitable?

There are many reasons for construction projects to lose money, and often more than one for a particular loss. Some reasons may be:
  • There are too many people.
  • Inadequate, poor or insufficient supervision.
  • The wrong mix of trades and skills.
  • Poor worker morale.
  • Poor discipline and time-keeping.
  • Poorly trained workers.
  • Poor safety.
  • Too much equipment or the inefficient utilisation of equipment. ​The impact of poor equipment productivity on construction projects
  • The wrong type of equipment. What Size Equipment Is Right for Your Construction Project?
  • Equipment that continually breaks down. The Alarming Truth about Using Old Construction Equipment
  • A shortage of materials. 
  • Defective materials.
  • Materials aren't available when they're required or where they required. Do Your Material Deliveries Suck? How to avoid problems
  • The project is poorly planned and managed. Daily planning of construction projects
  • Subcontractors not performing as they should, delaying follow on trades. Managing your subcontractors. Ensuring your project is successful.
  • Poor workmanship resulting in work having to be redone. The true costs of poor quality construction
  • Theft of materials and equipment.
  • Wastage of materials.​

Why clients cost contractors money

Of course sometimes the reasons are because of the client, in which case it's important that the contractor notifies the client, claims for the delay, changes, or additional scope, and assists the client to rectify the problem. 15 Rules for construction variation claims and change orders When can contractors claim extra costs?

​Some reasons the client is causing the contractor extra costs may be:
  • Changed project conditions to those expected at tender stage such as restricted working hours, longer haul routes or materials with different properties.
  • Increase in scope.
  • Changed project specifications.
  • Changed testing procedures.
  • Late access.
  • Late information.
  • Changes to work already completed.
  • Different ground conditions.
  • Client provided services are inadequate or further from the work area than specified. 
  • Inadequate access or the client's operations impacting on the work.
  • The client taking too long to approve designs and drawings.
  • The client's design is more complex than the one tendered for.
  • Encountering unexpected services.
  • Finding unexpected artefacts or hazardous materials.

Occasionally the problem is due to a mistake in the project price in which case the estimator should be told so the same mistake doesn't occur on the next tender.
​#constructionprojects #constructionmanagement #contractors

Your Construction Project is in Trouble – Who are you Going to Blame?
Information in this article is from Paul Netscher's construction management books all available on Amazon and from other online stores.
​© 2022 This article is not to be reproduced for commercial purposes without written permission from the author.
Picture
Picture
Picture
Picture
construction management construction project management
1 Comment
Daniel Ranoko
29/5/2014 10:35:01 am

It is normally not being on top of things with regards to document and communicate changes. The other aspect is also brought by lack of resources

Reply

Your comment will be posted after it is approved.


Leave a Reply.

    Picture
    Picture
    Picture

    Archives

    December 2024
    November 2024
    October 2024
    June 2024
    April 2024
    March 2024
    February 2024
    January 2024
    September 2023
    July 2023
    May 2023
    March 2023
    January 2023
    October 2022
    August 2022
    June 2022
    May 2022
    March 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014

    ​Note: We welcome genuine comments, especially comments that add additional information to the subject matter in the article. We however reserve the right to remove inappropriate comments, which includes comments that have nothing to do with the subject, comments that include inappropriate language, and comments that are an advertisement for a product or company, or which include an advertising link. Comments must be in English. We will not enter into discussion on why a particular comment was removed.

    Categories

    All

    RSS Feed

    Copyright 2016 - The attached articles cannot be reproduced for commercial purposes without the consent of the author.
    The opinions expressed in the attached articles are those of the writer. It should be noted that projects are varied and different laws and restrictions apply which depend on the location of the contractor and the project. It's important that the reader uses the supplied information taking cognisance of their particular circumstances. The writer assumes no responsibility or liability for any loss of any kind arising from the reader using the information or advice contained herein.
    Picture
    "I have what I consider some of the best books on construction management."

    Books are available from:
    Amazon.com
    Amazon.co.uk
    takealot.com

    kalahari.com
    Amazon.in
    Amazon.de
    Amazon.fr
    Amazon.it
    Amazon.com.au
    Powell's
    Fishpond
    uread
    bokus
    Amazon.ca
    Amazon.es
    Other retail stores

    Available in paperback or on Kindle
    Picture
    ​"28 YEARS OF CONSTRUCTION PROJECT MANAGEMENT EXPERIENCE, DEVELOPING SUCCESSFUL CONSTRUCTION PROJECT MANAGERS AND BUILDING SUCCESSFUL CONSTRUCTION COMPANIES"
    Picture
    Picture
    Picture

Construction Books

Successful Construction Project management
Building a Successful Construction Company
Construction Claims: A Short Guide for Contractors
Construction Management: From Project Concept to Completion
Construction Project Management: Tips and Insights
​
Build and Renovate Your Home With Your Eyes Wide Open
Book Reviews

Construction services

Construction Management Services
Paul Netscher
Construction Management Blog
​Home Improvement Blog

Contact
Developing Successful Construction Project Managers.

Building Successful Construction Companies.
30 years of construction project management experience
  • Construction Home
  • About Paul Netscher
  • +Construction Books
    • Successful Construction Project Management
    • Building a Successful Construction Company
    • Construction Claims
    • Construction Project Management: Tips and Insights
    • Construction Management: From Project Concept to Completion
    • An Introduction to Building and Renovating Houses
    • The Successful Construction Supervisor and Foreman
    • Designing your ideal home
  • Construction Management Services
  • Book Reviews
  • Contact
  • Blog | Construction Management
  • Site Map
  • Blog | Home Improvement
  • Index of construction articles
  • Useful Links
  • Index Home Improvement