1| How to fail in a construction project
Failure blueprint (Story no.1) — Business Case
As we all know construction project has a big impact on its business objectives, we saw a lot of businesses bankrupt because of their construction project lack of management or failed to handover or even the usual heard word executed over budget, So what is the main reasons of those big failures ?
After 12 years in Middle East construction project it is pretty obvious to me how can a construction project fail, and all of these reasons can be prevented if we just align the plans together.
Let me take you in the journey of executing a project and I’ll highlight the reason on the road.
1- Business Case
Before starting any project there is a business case or feasibility study shall be prepared, here few mistakes can occur in this stage:
— A) Considering lowest cost benchmark vs highest revenue in the market which will mislead the business owner in many aspect and can impact the project once these assumptions cannot be confirmed.
— B) Use Rough Order of magnitude amount without considering a buffer cost during the stages development, Like using plot area, unit number, or built-up area to calculate the cost and not consider any buffer for authority requirement or stakeholders impact.
— C) All of business case assumptions stay in a locked drawer and not verified or updated periodically.
— D) Not considering time impact or project duration and price fluctuation which of course will lead to over budget project.