How to Deal With and Prevent Construction Cost Overruns

Cost overruns can, well, cost you and your client a lot of extra money. 

We’ve all been there. Your clients expect you to hit the budget and timeline for your projects, but, due to several factors, you go over budget.

“Hey, we need more money,” is not a fun conversation to have with your clients.

This is what’s known as cost overruns in the construction industry, and it’s an extremely common issue.

Only 31% of all construction projects came within 10% of the budget in the past three years. 

And the average cost overrun for a project that cost between $50 million and $1 billion is a whopping 32.5%.

That means that if you budgeted a project for $50 million, you’d actually end up spending 

$66, 250,000. Yikes.

Cost overruns are a real problem. You need to know what causes them and, even more importantly, how to avoid them.