When Construction Projects are Losing Money

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 What does a Project Manager do when their construction project is losing money?

Well we know what their managers will do! They’ll probably be angry and order the project manager to cut costs. Even replace the project manager.

The project manager will possibly try and hide the problem. Maybe hope that things will improve. Even blame others – especially the estimator.

All of the above usually just makes the problem worse. It’s important to find the reasons for the loss. I say reasons because there’s almost always a number of contributing reasons. Stay calm. Expose the full size of the loss. Implement measures to prevent or reduce further losses and try and recover money already lost. Ask for help if necessary. As much as your manager might not want to show their boss the full extent of the loss it’s important that they do, so the company can put contingency plans into place to safeguard their cash flow. I’ve seen a large construction company destroyed when a couple of projects lost money and senior management wasn’t prepared for the losses.

I’ll discuss some reasons for losses later. some Reasons why projects lose money

"​I found that referring to this book was like having my own mentor on tap. Excellent." (Reader Amazon)

​Paul Netscher has written several easy to read books for owners, contractors, construction managers, construction supervisors and foremen. They cover all aspects of construction management and are filled with tips and insights.
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The books are available in paper and ebook from most online stores including Amazon.