Working within the construction industry is challenging, exciting, and ever-changing. What one construction manager knew ten years ago would not necessarily apply to today’s construction projects. This is why it is important to constantly look at the ways in which construction projects are working and failing. Today we are going to cover the five most common ways that today’s construction projects lose money.

1. Getting off schedule

It is no surprise that one of the easiest and most common ways a construction project loses money is by getting of schedule. Even a one-day delay can cost thousands of dollars and can further have a domino effect that makes it difficult to make up the time. When you use Fund Control, we allow you to easily see each piece of the puzzle so you can anticipate potential problems and avoid them.

2. Not adequately managing the budget

Budgets are not suggestions. They are there to ensure that things are done on time and that there is enough money to pay for what needs to be done. If a company does not manage the budget and has to dip into reserves to pay for something, then extra costs can occur. If changes must be made at the last minute because there are no funds, then money can be lost in the long run.

3. Not hiring the right people

Having the wrong employees is more than frustrating – it can result in losing money. It could be something drastic like an unvetted employee embezzling money from a construction project or it could simply be an employee who takes longer breaks and lunches and therefore is not earning their wage. The wrong employees can easily lose any construction project money.

4. Issues with construction contracts

This can be an issue in a wide range of ways. Did you forget to include comprehensive language that left you open for a lawsuit? Have you negotiated away too much and are left with less profit than you need? We recommend working with a contract attorney to ensure that your contracts are covering you the way you think they are.

5. Unanticipated changes

There is no question that changes that come up at the last minute can cost a pretty penny. Sometimes there is nothing that could have been done to prevent them but all too often they could easily have been prevented with better planning and superior communication. This is where our fund control software comes in.

Our fund control software is not a business application that can be modified to work for the construction industry – it was created specifically for the construction industry. It allows your employees to communicate quickly and easily, it makes it simple for you to see every penny that’s going out and coming in, and it can truly help prevent you from losing money on your next construction project.