• CSC tag_orngBlu
  • Conference
      • About
        • About the Conference
        • Floor Plan / Sponsor List
        • Sponsors
        • FAQ
        • Contact Us
        • Health & Safety
      • Hotel & Travel
        • Hotel Accomodations
        • Travel Information
      • Attend
        • Why Attend?
        • Registration & Pricing
        • Agenda At-A-Glance
        • Conference Schedule
        • MCLE Accreditation
        • Speakers
        • Speaker Resources
      • Sponsor
        • Why Sponsor?
        • Sponsor / Inquire
        • Sponsor Resource Center
        • Sponsorship & Advertising
  • News
    • Latest News
  • Subscribe
    • Newsletter Signup
  • .
  • Conference
    • About
      • About the Conference
      • Floor Plan / Sponsor List
      • Sponsors
      • FAQ
      • Contact Us
      • Health & Safety
    • Attend
      • Why Attend?
      • Registration & Pricing
      • Agenda At-A-Glance
      • Conference Schedule
      • MCLE Accreditation
      • Speakers
      • Speaker Resources
    • Sponsor
      • Why Sponsor?
      • Sponsor / Inquire
      • Sponsor Resource Center
      • Sponsorship & Advertising
    • Hotel & Travel
      • Hotel Accomodations
      • Travel Information
  • News
    • Latest News
  • Subscribe
    • Newsletter Signup

December 9-11, 2025
Hyatt Regency Coconut Point, Bonita Springs, FL

Register Sponsor
Q

Latest News

November 29, 2017

Opinion—Estimating and Project Management Remain the Key to Success

Latest News
Economic Forecasts | Ethics and Compliance | Infrastructure and Transportation | Insurance and Surety | Latest News | Litigation Strategies/Dispute Resolution | News | Risk & Contract Management | Workforce and Labor
November 29, 2017

Opinion—Estimating and Project Management Remain the Key to Success

By Don Wallis.

Field operations cannot succeed without competent office support.

According to Elizabeth Sanborn, chief operating officer at Independent Project Analysis, Inc., “about two-thirds of [construction] projects over $1 billion fail compared to smaller projects’ 40% failure rate.’’

These astonishing statistics are included in an article in Engineering News-Record co-authored by Debra K. Rubin, Alisa Zevin, Janice L. Tuchman, and Scott Blair.

Projects managed by the largest, most sophisticated construction, architecture, and engineering companies in the world fail 66% of the time. The failure rate for the construction industry as a whole approaches 30 to 40 %.

The main reason for these failures, according to the ENR report, is not shoddy workmanship. It’s inaccurate estimating, imprecise risk analysis, and poor coordination between the design professionals, the owner, the general contractor, and subcontractors and suppliers.

Everyone in construction knows that attention to the details of project management is essential. All construction managers know that profitability is best ensured by sharp pencils in the negotiating process prior breaking ground.

Modern estimating and project programs make it possible to control and coordinate every facet of the construction process. Real-time communication between companies in any part of the word is now available.

Why then do companies in our industry continue to lose money on their projects? There are several reasons.

Many projects are still awarded to the lowest bidder. This is often the company that overlooked a cost item in their bid.

Pricing information provided by owners to bidders is sometimes incomplete. This is especially true for projects where state-of-the-art technology is being tested for the first time.

And there are the classic cost overruns due to weather or unexpected increases in the cost of material.

Contingency funding is often insufficient.

“Stephan Cabano, president of Pathfinder LLC, stressed the importance for the owner to understand clearly a project’s scope and lock it down before the project is fully funded.” Contractors should do the same before signing contracts.

Source—

Economies Are ‘Fragile,’ but Firms Push Robust Strategies, Debra K. Rubin, Alisa Zevin, Janice L. Tuchman, Scott Blair, Engineering News-Record, Nov. 6/13, 2017.

Don Wallis has more than 40 years experience in residential and commercial construction, and land development. He also has a law degree and currently teaches Environmental Law at Santa Fe Community College.

Economic Forecasts•Ethics and Compliance•Infrastructure and Transportation•Insurance and Surety•Latest News•Litigation Strategies/Dispute Resolution•News•Risk & Contract Management•Workforce and Labor

SHARE

Share on Email
Share on Linkedin
Share on Facebook
Share on Pinterest
Share on Twitter
← Previous Article Next Article →
Latest News Latest NewsNews

AGC: “Extreme” Price Hikes for Steel and Aluminum

“The huge increases in steel and aluminum tariffs appears to have enabled domestic producers to push up their selling prices,” said Ken Simonson, the association’s chief economist.

Latest News Latest NewsNews

NYC Attorney Confirms: Defects on the Rise

Carol A. Sigmond, partner at Greenspoon Marder LLP, is seeing a trend; construction defects are on the rise.

Latest News Latest NewsNews

AGC: “Extreme” Price Hikes for Steel and Aluminum

“The huge increases in steel and aluminum tariffs appears to have enabled domestic producers to push up their selling prices,” said Ken Simonson, the association’s chief economist.

Latest News Latest NewsNews

Pricing Risk in Construction – CSC Session Preview

How do you factor in risk from tariffs, immigration crackdowns, and political unrest? CSC will tackle it all.

Latest News Latest NewsNews

Tariffs Drive Up Prices On Key Construction Materials

Steep tariff increases on aluminum and steel, along with a recent tariff on raw copper, drove the producer price index.

Latest News Latest NewsNews

Expanding Roles for In-House Counsel

According to John Fedun, many services that have traditionally been outsourced are now being brought in-house.

Latest News Latest NewsNews

Conference Connections and In-Person Education 

Why spend the time, money, and effort in the digital age? We asked why CSC attendees continue to make the trip.

Latest News Latest NewsNews

Construction Spending Decreases by 0.3 Percent

It's the largest year-over-year decrease since February 2019, according to an analysis by the AGC.

SHOW INFORMATION

SIGN UP

Register now for the opportunity to connect with thousands of atttendees and vendors

Register
Sponsor / Inquire
FOLLOW US ON
  • Follow
  • Follow
  • Follow
Emerald Logo
© 2025 Emerald X, LLC. All Rights Reserved
ABOUTCAREERSAUTHORIZED SERVICE PROVIDERSYour Privacy ChoicesTERMS OF USEPRIVACY POLICY