What makes a construction project successful?

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"Will your construction project be successful for all participants?"

Many construction projects are unsuccessful. (Based on a study by KPMG last year only 31% of respondents’ projects over the previous three years came in within 10% of their budgeted cost and only one quarter of projects over that period came in within 10% of their original deadlines.) This judgement is based solely on the fact that they were finished over budget or late. But even when construction projects are finished within budget and on time are they necessarily a success? Well, that answer often depends on your association to the construction project!

Let’ ask these questions about construction projects

• What happens when a construction project is finished on time and within the customer’s budget? Certainly the customer may regard the project as being a success. But what if the contractor lost money – obviously the project isn’t a success for the contractor.
• What if the construction project is completed on time, within budget and the general contractor made money, but some subcontractors lost money? Well of course the project wasn’t successful for the subcontractors! What if the subcontractors weren’t paid – well then the project definitely wasn’t a success for them.
• What about if a worker was killed while working on the project? The construction project certainly was a disaster for the worker and their relatives and probably has ramifications for the company that employed the worker. Can we regard a project with a poor safety record and injuries as a success?
• Of course, we often have construction projects delivered on time and within budget which don’t deliver value for money. Politicians often force through projects that are clearly unsuitable for the environment, the neighbourhood or simply are construction projects that can’t deliver what they are supposed to deliver or are unaffordable. The world is cluttered with white elephant projects. Again, I would label these projects as unsuccessful, no matter how successful the construction phase was.
• What if the construction of a new apartment complex is completed successfully, but the developer cannot sell the apartments because the apartment market is oversupplied, or the quality, style, or size of the apartments doesn’t suit what buyers are looking for?

Indeed, there is the opposite, where some of the most disastrous construction projects have turned out to be hugely successful. Consider the Sydney Opera House – named in the Hall of Shame of landmark building projects with major cost blowouts (the project was completed 14 times over budget and 10 years late), yet today the Sydney Opera House now stands as a city icon (even a national icon) recognised worldwide, a mega tourist attraction and successful venue.
Are your subcontractors profitable? Should you care?

"Do you know who the stakeholders on your construction project are?"

Construction project stakeholders

Every construction project has many stakeholders which include:

• The customer or project owner.
• The contractor.
• The design team.
• Neighbours.
• Those who will directly benefit from the project.
• The community.
• The environment.
• The customer’s operations staff.
• Subcontractors.
• Investors.
• Shareholders.
• Workers.

Each of these stakeholders often has competing demands that can jeopardise the success of a construction project. We want a win-win for all stakeholders involved with a construction project. Is this possible?

Does the client have to get the construction project delivered under-budget at the expense of the contractor? Does the contractor only make a profit at the expense of their subcontractors and their workers?

Does the community want a cheap project that is a blight on the neighbourhood?
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Is the design team interested in the long-term maintenance of the facility?

Dealing with the different construction project stakeholders

​Unfortunately, often all of the stakeholders aren’t considered, while in other cases some stakeholders are allowed to dominate the process at the expense of others. In some instances personal interests and egos are allowed to dictate the project. Running through all of this is money – everyone wants the cheapest price and the most profit.
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There needs to be honest dialogue with the various stakeholders to ensure the best outcomes for all parties and the project. They might not be the desired outcomes at the start of the process, but the outcome should be best result for all parties after due compromises have been made. The Importance of Stakeholder Management in Project Success

"Will all those on your construction project be happy with the final project?"

What defines a successful construction project

​A successful construction project is one which:

• Is finished on time.
• Is completed within budget.
• Is of good quality.
• The facility achieves what it is supposed to.
• Adds value to the community.
• Resulted in profits for the contractors.
• Is completed safely
• Makes efficient use of resources
• Benefited the workers – wages, learnings and promotions
• Doesn’t damage the environment
• Doesn’t have major disputes – labour, legal or contractual
• Results in long term success for the project achieving:
  • Commercial success.
  • Process efficiency.
  • Minimal ongoing maintenance over the life of the project.
  • Operational safety.
  • Sustainable operations.

Indeed a Win-Win for all parties.
Why Safety Is Important On Your Construction Project
How important is quality on your project?

Delivering a successful construction project

Is it possible for a construction project to tick all the boxes and be successful in every respect?

​Good construction project management with open and honest dialogue and a team that is focused on the project and not on individuals and companies is surely a good start. One stakeholder’s success shouldn’t depend on another’s failure.
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What do you think?
Have you delivered a truly successful project?
What disastrous projects have you been involved with?
Why many government construction projects aren't successful
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