Why some projects fail and how to avoid it?
Some construction projects are doomed to failure from the start, while others fail due to external factors. Construction projects likely to be unsuccessful during their development time or after completion can be identified by examining their initial design, reviewing the current conditions of the construction site, and exploring possible problems.
No matter how well a project is planned and managed, there is always the potential for something to go wrong. Medical fitouts and Healthcare fitouts are no exception. While some problems can be averted with proper preparation, others may be beyond your control.
How do you prevent failures?
Often, the challenges come during several stages of a construction project. What’ll happen when something big threatens your success? It can be difficult to ruin a project when a minor problem occurs, but it’s extremely difficult to overcome a major setback.
Planning for the future is probably the best way to ensure any construction project goes smoothly. There are some vital points that can be covered in planning stages when preparing for a successful construction project. It’s important not only to develop your plan, but also to implement it correctly and see it through.
Commercial construction services professionals have analysed infrastructure projects to determine why they failed. This analysis has led to a list of common causes for failures, including:
Unrealistic Budgeting
It is one of the main factors responsible for project failure. Most people tend not to look at budget things thoroughly, although it plays an essential role in deciding whether a project will meet its goals before beginning with it. If it is concluded that there is no possibility to finish the project within a certain budget, then there is no point of going further with it.
Moreover, another research has shown that 38% of projects were finished over budget and only 7% at their predicted cost. Comparing these numbers, it can be inferred that making a realistic budget for a project is a very hard and demanding task that requires more time and efforts from people involved in the decision-making process or responsible for this particular job.
Inappropriate Team Formation
It was recognised that inappropriate team formation was one of the most common causes, eventually leading to failure. In fact, if people who work on a construction site have incompatible goals or opinions on how to complete a project, it may lead to serious problems during the construction process.
The most common signs that show insufficient compatibility between the team members are:
- Lack of motivation and productivity within a team
This is the easiest way to recognise that something is wrong. Finding no particular work to be done by certain team members – there comes a time when some people get tired of their job and do not seek new tasks or objectives, but just wait for further instructions from supervisors. It may occur that such employees will leave for another company where they will find something to do.
- Unwillingness of the workers to share the required information
Many construction projects fail because they make the wrong decisions. As mentioned earlier, well-prepared plans can help avoid such mistakes and guarantee project success. When developing plans for a particular project, there are many aspects that should be considered in detail before making any final decision. It’s not enough to think about them briefly, but each of them should be properly analysed.
- Inappropriate decision making process when taking important decisions
Many construction projects fail because they make the wrong decisions. As mentioned earlier, well-prepared plans can help avoid such mistakes and guarantee project success. When developing plans for a particular project, there are many aspects that should be considered in detail before making any final decision. It’s not enough to think about them briefly, but each of them should be properly analysed.
- Absence of trust between members
As mentioned earlier, trust can be easily broken if people do not open up. Trust is a very important element of any team, and only a group of trustworthy employees can efficiently and successfully complete a project on time.
- Lack of commitment by the team to perform tasks
If employees show no interest in the project, or if they even don’t care about it, their commitment to tasks may not be sufficient enough to complete them well. The lack of required motivation makes people think there is no point in trying hard to do something when there are other people who can do this job better than themselves.
The reason why this happens is that people usually forget about their differences when putting together a team, especially when it comes to solving particular problems during construction.
They also do not emphasise their individual opinions to make decisions collectively, which can save time and effort in the long run.
Finally, it is always better to look at the skills and qualifications of a person when hiring him/her, but also to pay attention to his/her outlook on how projects should be completed in general.
Too Many Clashes with Authority
On the other hand, team members should be aware of how important their role is, and they must understand what responsibilities they have.
Thus, construction professionals suggest that companies carefully select people willing to work for them, or at least hire employees with appropriate qualifications and experience that match project requirements.
It is equally important to ensure that all team members are assigned their jobs according to their capabilities, and know how to complete them successfully.
Failure of Project Manager
Who should be responsible for controlling the progress of a construction project? Considering there are many projects running simultaneously, it may be difficult to control them all simultaneously, especially for companies.
This is why construction professionals suggest splitting larger projects into different stages, and then assigning each of these stages to a responsible project manager.
It should be noted, however, that responsibility for success or failure should not belong to one person responsible for all project stages, but should be distributed between them according to their area of responsibility. Moreover, company owners should not try to do other people’s jobs and expect professionals to achieve the results they want by themselves.
Inappropriate Design
Inappropriate design is another important factor that leads to failure, as this factor determines how much money will be spent on a particular project, and whether there would be any changes needed later, which costs even more money.
Thus, making a good design before starting the project is crucial for its success, as it increases the likelihood of achieving goals and helps avoid unexpected situations that play an essential role in almost every construction project.
People involved in the design process should understand that their project is unique and requires a proper design that takes into account all aspects, including technical necessities.
One of the most common mistakes is designing something before making an assessment of what type of construction material will be available for use based on location. This leads to increased costs or changes during construction, which may lead to additional expenses.
Unrealistic Expectations
Another main reason for project failure is unrealistic expectations. People sometimes expect things that are almost impossible to happen due to different reasons, including lack of knowledge or experience with similar projects.
An example could expect an architect’s drawings finished within 2 weeks, although 4-6 weeks is usually required for this type of job.
Thus, to prevent such situations and ensure that people understand what is required to complete a certain task, it is best to inform them about all the necessary steps to achieve this goal. It is also important to ensure that employees know how much time they need for each stage or task, so it would be clear when deadlines are met and when they are not.
Excessive Costs
This issue can affect construction projects in multiple ways. For example, employed workers may demand higher wages, or sub-contractors could ask for additional fees. To prevent such situations, construction professionals suggest discussing all possible solutions with people involved in the project beforehand, to ensure they understand what is needed and why this job should be done at that price.
Also, it is crucial to find out about potential issues before starting the project, so that potential risks can be avoided.
As a rule, many problems arise when people expect the project to be completed right away, and forget that doing so requires certain preparations and expenses. In such circumstances, progress will likely be slow, which may lead to changes in the initial plan or troubles with attracting extra resources.
Therefore, it would be more difficult to complete the project on time, which means leaders should not expect their subordinates to complete the entire project alone.
Fuzzy Objectives
It may seem silly to say a project must be oriented towards a goal, but that is the reason it fails. Typically, the resulting projects do not contain the critical issues they were addressing when developing. The project scope plays an essential role in any project successfully completed.
In most cases, project managers or other people in charge make a list of objectives and divide it into multiple stages. Each stage is associated with a certain number of tasks that need to be completed. It is crucial for project managers to understand that there should be no too many objectives for any one task, otherwise the objective will not be achieved in time. Establishing too many objectives also makes it harder to determine the reason for project failure, due to their vague relevance.
Also, having too many objectives may confuse people involved in the project. For example, if a construction worker is given five goals for one task, he probably does not know what his primary objective is and which goal should be accomplished first.
Scope creep
As the work goes on, scope creep can easily creep in. The problem occurs when project stakeholders try to introduce additional items to the first design, but fail to anticipate the effects. This can occur if your delivery plan doesn’t have clear parameters, or you add additional delivery options too late in the process.
Adding new items to an already completed project (or even to a plan of any size) can increase the cost of your project, which may make the whole initiative not feasible anymore.
Project managers should notice when scope creep is happening and do their best to stop it, before it disrupts all their achievements. This can only be possible if team members can identify when this problem occurs and take appropriate measures to avoid it.
Poor Accountability
It is possible for a project manager to be aware of all issues related to the project and know what needs to be done to complete it, but fail to do so. This problem can appear due to personal reasons, such as desire for additional rewards or fear of punishment. In this case, leaders should identify the main cause that makes them pursue their own interests, rather than the common good.
Moreover, they should clearly explain why some initiatives may not be beneficial for projects, and understand that subordinates must follow the established rules if they want to see results. Establishing responsibility on all levels of your staff can significantly reduce this problem.
People need to know who to ask about relevant issues, so that leaders should communicate more often with their subordinates. Also, they must do their best to meet the needs of every team member and treat each project member fairly.
These simple things can help leaders solve the problem of poor accountability, allowing them to build a strong team that can complete projects successfully.
In general, it is crucial for managers and people in charge to establish responsibility at all levels, rather than only at one or two positions. If a project manager fails to do so, he or she should not be surprised if the project fails to meet the plan, as it is unlikely that subordinates will take responsibility for their own actions.
Poor Measurement or Testing
Projects often fail due to poor testing. It is essential for managers or other people in charge to determine what needs to be tested and how, before the project starts.
Measurement of results should be done regularly during the implementation process, because it allows for adjusting actions if necessary. Also, it helps build strong teams confident in their work and shortens the feedback loop, which is crucial for better decisions.
Project managers need to clearly establish testing procedures before the project starts, and ensure that subordinates know what needs to be tested and how to do it.
The results of the project may be influenced if there are any issues measuring and testing the project.
Lack of Transparency
It is easy to recognise this problem. It appears managers do not share their plans with subordinates or fail to give them relevant information about the project.
When leaders are transparent to their team members, they increase responsibility and build strong teams that can complete projects successfully. Also, it helps people feel more comfortable during the implementation process and reduces mistakes.
Project managers should share all relevant information with subordinates as early as possible. This may help staff better understand the requirements and avoid mistakes that could have been prevented. Also, sharing plans with people closely involved in a project can increase their engagement level towards the initiative’s success.
It is not easy to identify this problem, but it can still be prevented. Project manager should ensure they share all information with the team as early as possible, and guide them to improve results regularly.
Lack of Communication
Mastering communications skills is essential if managers want the project to succeed. People involved in projects need to communicate regularly and discuss any issues they are experiencing.
For example, if some members of the project repeatedly fail to meet deadlines or produce high-quality results, it may be a sign of poor communication gaps. In this case, superiors or project managers should discuss these issues as soon as possible and provide feedback on how they can improve their work.
Project managers must do whatever is necessary to ensure that all members of the team communicate, discuss issues that may occur during the implementation process, and help each other improve results.
If leaders fail to do this, it can lead to unexpected problems and hinder the project’s success.
External Issues
In some cases, projects fail because of external factors, such as changes in market conditions or competitors’ behaviour. For example, if managers make wrong decisions about who their clients are and what they need, it could ruin the project. External issues aren’t always easy to detect and can ruin a project.
External factors can also be much harder to control than many managers think, especially when they depend on the behaviour of other people.
For example, marketing strategies for promoting products depend on competitors’ decisions and market changes that are out of their power. Many companies end up wasting time and resources because they fail to predict changes in the market.
Managers must always consider all possible factors before acting. If they are unable to do so, it can lead to problems that could have been prevented if they were more prepared.
Lack of Recognition or Feedback on Performance
It is easy to recognise this problem, because it appears people do not receive feedback on the results they achieved. It also often occurs when managers fail to provide their subordinates with information about how well they perform, which leads to low engagement and insufficient motivation.
People need to know about the progress of the project to feel satisfied with their work, because they know how much effort is needed to reach the final goal.
Project managers should regularly give feedback to subordinates, and encourage them to understand that every member contributes to the initiative. It may take more time than usual, but it can pay off in the long run.
Managers should also give good advice about how to do better next time, instead of focusing on their mistakes. If they focus too much on making subordinates aware of what they did wrong, people will feel under pressure and not want to work with them again in the future.
How do you prevent project failure?
Often, the challenges come during several stages of a construction project. What’ll happen when something big threatens your success? It can be difficult to ruin a project when a minor problem occurs.
You can avoid the risk of failure by being aware of what could happen during each stage.
Use project management software
Management projects involve juggling projects, ensuring everything runs smoothly & on budget. This is overwhelming. The Project Manager software should also be of great importance to help you keep an eye on costs, resources & time via the dashboard. They let you see how far your project has come and what to do next.
Start using it now to track everything important for the smooth running of your projects. It makes it easier to hold everyone accountable for their tasks and progress, making sure things get done when they’re supposed to.
Implement risk management
Even if one expects something great, it is important to be realistic. The issue could come up unexpectedly. When integrating risk management into projects, you can stop a small problem from turning into a big problem in the long-term. Make sure you have a good plan in place, a clear purpose, and a team capable of handling every task.
You do not want to invest countless amounts of time and money into a project, only to see it fail. The risk management will ensure you are prepared for any obstacles.
Knowing the focus is always on efficiency helps managers determine how long it takes to complete tasks and give them better forecasts for future projects. It also helps keep everyone accountable by tracking their progress and how it relates to the project as a whole.
Conclusion: Assessing & recovering failed projects is one of the hardest jobs that project managers do and can do for organisations. However, if it fails, it can have huge returns. So, a lot of effort needs to be put into avoiding this catastrophe.
Project managers must carefully plan every step of the project and take into account all possible risks. They have to guarantee they have everything they need, so they won’t fail when problems arise.
But if it fails once, you can always start thinking about how to get it back on track and rebuild it. You can do this by using project management software, risk management, and giving regular feedback to subordinates.
