Their are multiple causes of Construction Cost Overruns , some of which are noted in the following graphic.
In reality, however, virtually all negative causal factors can be eliminated or at least mitigated through the use of LEAN construction planning, procurement, and project delivery processes (LCPPP).
LCPPP processes have proven capable of a 90% success rate in the consistent delivery of quality repair, renovation, and new construction projects. This is a significant improvement over the AEC industry-wide average of only 10%-20% of all projects being completed on-time, on-budget, or in a manner satisfactory to project participants/stakeholders.
Examples of LCPPP include integrated project delivery (IPD) for major new construction projects and job order contracting (JOC) for repair, renovation, maintenance, and “minor” new construction. When implemented and managed properly, both methods are capable of consistently delivering BEST VALUE outcomes for all participants.
Tools and services are readily available to enable any organization to start the successful and ongoing deployment of LCPPP.
