50+ CAUSES OF CONSTRUCTION PROJECT FAILURE
There are many causes of Construction project failure, whether a small or complete failure, and most failures are a result of more than one cause. Some causes may directly or indirectly affect other causes. For example, political problems can lead to planning and execution failure. For easy understanding, I have divide project failure into three categories
1)planning/execution failures
2)Governance/stakeholder failures
3)Political failures
Let’s discuss one by one…
1)Planning/execution failures:
The main causes of construction project failure is due to execution of work. let’s discuss all failure points.
- Business case deterioration.
- Business case requirements changed.
- significantly over the life of the project.
- Technical obsolescence has occurred.
- Technologically unrealistic requirements.
- Lack of a clear vision.
- Plan asks for too much in too little time.
- Poor estimates, especially financial.
- Unclear or unrealistic expectations.
- Assumptions, if they exist at all, are unrealistic.
- Plans are based upon insufficient data.
- No systemization of the planning process.
- Planning is performed by a nonplanning group.
- Inadequate or incomplete requirements.
- Lack of resources.
- Assigned resources lack experience or the necessary skills.
- Resources lack focus or motivation.
- Staffing requirements are not fully known.
- Constantly changing resources.
- Poor overall project planning.
- Established milestones are not measurable.
- Established milestones are too far apart.
- The environmental factors have changed causing outdated scope.
- Missed deadlines and no recovery plan.
- Budgets are exceeded and out of control.
- Lack of replanning on a regular basis.
- Attention does not provide to the human and organizational structure aspects of the project.
- Project estimates are best guesses and not based upon history or standards.
- Not enough time provided for estimating.
- Miss data of important mild stone.
- Team members working with conflicting requirements.
- People are shuffled in and out of the project with little regard for the schedule.
- Poor or fragmented cost control.
- Weak project and stakeholder communications.
- Poor assessment of risks if done at all.
- The wrong type of contract.
- A not clear understanding of the whole project.
- management, especially virtual team members.
- Technical objectives are more important than business objectives.
- Not sufficient time to important work.
- Poor performance tracking metrics.
- Poor risk management practice.
- Insufficient organizational process asset.
2) Governance/stakeholder failures:
- End-use stakeholders not involved throughout the project.
- Minimal or no stakeholder backing; lack of ownership.
- The new executive team in place with different visions and goals.
- Constantly changing stakeholders.
- The lower organization does not know about the goals of the company/project.
- Unclear stakeholder requirements.
- Passive user stakeholder involvement after handoff.
- Organizational processes vary with each stakeholder, it will create problems.
- Weak project and stakeholder communications.
- The inability of stakeholders to come to an agreement.
3) Political failures:
- New elections resulting in a change of power.
- Changes in the host country’s fiscal policy, procurement policy, and labor policy.
- Civil unrest resulting from a coup, acts of terrorism, kidnapping, ransom, assassinations, civil war, and insurrection.
- Significant inflation rate changes resulting in unfavorable monetary conversion policies.
- A contractual failure such as license cancellation and payment failure.
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