From failing to read the contract terms to not having a risk management process in place: common construction project management mistakes to avoid

Domino Effect

Construction projects are often very complex and many variables influence the cost and timeline. This is why it is important to make sure that projects are pre-planned and attention is paid to every detail to avoid cost overruns and delays. Even small mistakes can snowball into major issues that can be costly. Here we share with you some construction project management mistakes to avoid:

Mistake 1: Failing to read the contract terms:

Creating a solid construction contract is among the first steps of a successful project and learning about its essential components is very important. However, construction contracts are full of legal jargon and dense language that can be difficult to comprehend. As a result, it is not uncommon for important details to be overlooked. It’s essential to take the time to carefully review the terms of a construction contract and understand the scope and quality requirements of the project. A breach of contract can lead to claims and disputes.

Mistake 2: Creating inaccurate estimates:

In construction projects, creating accurate estimates is the key to success. Failure to do so can result in cost overruns, and schedule delays. To create accurate estimates, you need to take the time to conduct research and generate highly accurate estimates. This process requires effort, but it is essential to avoid last-minute surprises and cost overruns.

Mistake 3: Failing to create a risk management framework :

Each construction project is unique and comes with its own set of risks and challenges. Not identifying and managing construction project risks can disrupt and derail a project. To avoid any derailment, risks must be identified, assessed, controlled, and monitored. Common construction risks include:

  •  Safety hazards that lead to work accidents and injuries
  • Managing change orders
  • Poorly defined work scope
  • Difficult site conditions
  • Unexpected increases in material costs
  • Labour shortages
  • Damage or theft to equipment and tools
  • Natural disasters

Here are the five steps involved in risk assessment:

  • Evaluating the risks
  • Identifying potential hazards
  • Documenting and analysing data
  • Determining what to measure
  • Reviewing regularly

Mistake 4: No communication plan:

Maintaining instant communication can be difficult in construction projects as multiple parties are often far-flung and projects are complex. However, delays in communication or miscommunication can lead to delays. It’s important, therefore, important to determine a chain of command for communication. This should be spelt out in the contract documents.

Mistake 5: Continuing work without change orders:

A change order is a formal document that is used to record changes to a construction project. Change orders can be generated by contractors, owners, or architects. Change orders typically reflect a change in scope, schedule, or price. Change orders can be generated for a variety of reasons, such as unforeseen site conditions, original contract documents and changes in the owner’s requirements. Change orders can have a significant impact on the profitability of a construction project, so it is important to manage them properly. When a change order is issued, contractors should closely review the scope of work and make sure that they understand the impact of the change.

Looking to create a risk management framework for your construction project? Seek the help of the expert

At Contract Square Pvt Ltd, we understand that construction projects come with a unique set of risks. That’s why we can help you come up with a comprehensive risk management process that includes evaluating insurance portfolios and establishing insurance priorities. We conduct regular insurance audits to keep up with any insurance renewals and potential claims. Contact us at or call us at +91 9903023893 to know how we can help you.

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