When you develop a construction project, you hope everything turns out well. You recently learned one of your projects ran over its budget. How did this happen?
To build your legal case against the responsible party, learn what Chron says about the reasons for cost overruns. Understand where to focus your energies on recovering damages.
A breakdown in communication
Perhaps the other party did not communicate with you well. If the at-fault individual hired others to complete the project, they could be responsible for the poor communication.
Unexpected costs
Did the other party perform due diligence regarding how much every aspect of the project would cost? Overhead, equipment, labor, legal fees, permits and materials all cost money. The person in charge of your project must check supplier and material agreements, gather financial reserves and keep constant track of the project budget.
Project scope shifts
Depending on your experience in the field, you may already know how projects grow. Increased project scope equals increased spending, which project managers must navigate. To keep a growing project going apace, it helps to establish boundaries that limit how much deviation you accept.
Unrealistic estimates
Underbid constriction projects usually result in losing control of the budget. Your project manager should know how to break down each aspect of your project and all associated costs to guard against oversights and cost overruns.
Underestimating project complexity
The person you hired to help with your construction project may lack the experience to gauge its intricacies, even if you have a small project. Having well-experienced construction professionals review your project may help sidestep a financial blunder.
You deserve to understand how to minimize risks on your construction projects. Learning about costs overruns may protect you from exposure.