Is your construction project over budget? Are you sure your estimate for a project is realistic? Thinking of your problem in a new way – with less focus on the details you know about about more emphasis on similar projects could be a way to get a better handle on what the project will actually take.

90 percent of infrastructure projects go over budget, by an average of 28 percent

In his 2019 book, “Range: Why Generalists Triumph in a Specialized World,” David Epstein shows how narrowly focusing on a problem – say, your latest construction or retrofit project – can lead to being overly optimistic about your schedule and budget.

Bent Flyvbjerg, chair of Major Programme Management at Oxford University’s business school, has shown that around 90 percent of major infrastructure projects worldwide go over budget (by an average of 28 percent) in part because managers focus on the details of their project and become overly optimistic.

The experts in Range suggest taking an “outside view,” that is, compare your current projects with those that are broadly similar.

Some suggestions:

  1. Ask someone outside of your organization: How long does it take other companies to finish work similar to mine?
  2. Don’t focus on all of the details of your project – the more detail you or someone considering your construction project knows, the worse the estimate will be.
  3. Can’t ask anyone outside of your organization? Take a moment to think about your job again, as if you were still bidding or as if you didn’t have it. In the abstract – what is your experience with similar projects?

Questions like these can help you regroup and recalibrate if your job has gotten off track.

Other ways to save with ongoing construction projects

Be sure to take over-paying for equipment out of your project by registering for Fleet Up.  With equipment vendors across the U.S., the site can help you quickly compare machine costs and find the right one for your job.

Already done with a project and need to de-fleet? Sell on Fleet Up today.

More on construction project cost overruns

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