What is the most common cause of construction cost overruns on commercial projects? Incomplete coordination during preconstruction causes more overruns than any other single factor. Most cost events that appear in the field were visible in the drawings first, particularly conflicts between mechanical, electrical, plumbing, and structural scopes. Resolving them during drawing review costs a fraction of resolving them after installation begins.
How are cost overruns different on a multi-site program than on a single build? On a single build, a cost problem stays inside one budget. On a multi-site program, the same problem repeats at every location that follows and draws down the contingency meant to protect the entire rollout. That compounding effect is why program-level planning matters more than any individual site’s buffer.
How much do commercial construction projects typically go over budget? McKinsey research on large projects found budgets exceeded by up to 80 percent and schedules running about 20 percent long. KPMG’s survey of construction owners found that only 31 percent of projects finished within 10 percent of the original budget. Results vary widely by project type and delivery method.
Can change orders in construction be eliminated completely? No project eliminates change orders entirely, because site conditions and owner requirements shift during construction. The realistic goal is removing the preventable categories, which are the conflicts a coordinated drawing review would have caught. Harris United reduces those by keeping mechanical, electrical, and plumbing coordination in-house rather than routing it through separate subcontractors.