Top 5 Reasons for Cost Blowouts on Asia-Pacific Construction Projects

EcoSys, EPC, Enterprise Project Controls, Ceros

By Adam Cimino

While construction activity in Asia-Pacific continues to increase, budgets are becoming increasingly tighter, and project controllers are expected to do “more with less.” 

Companies are demanding improved visibility into project and portfolio performance, with access to timely and accurate information to make business-critical decisions.

In my role with EcoSys, I am fortunate to meet regularly with project controllers across the region. No matter which industry these professionals come from, their challenges are similar. The top five that we see are:

  1. Inaccurate or missing progress data: Large projects potentially involve hundreds of different contractors and subcontractors. Gathering accurate progress data from so many parties is a huge challenge and often comes at a cost to the integrity of project reporting and analytics.
  2. The Excel trap: When project controllers need to align data from different systems – schedule, finance/ERP, time sheet, asset management, procurement – many turn to trusty Microsoft Excel. While Excel is an excellent program suitable for many things, managing large construction projects is not really one of them. We often see mismatched data and other inconsistencies as a result of its use.
  3. Hours wasted on reporting: When you’re pulling data from different sources manually, the time it takes to gather information for reporting purposes increases exponentially. I’m sure companies would prefer their cost engineers analyze reports rather than create them.
  4. Reporting inaccuracies: As well as being time consuming, the other potential risk of manual reporting is inaccuracy due to human error. A summary report must provide accurate details in work breakdown structure and costs, or it is virtually useless.
  5. Ineffective change management: Scope creep on today’s projects is close to inevitable. So are the questions that come with it: How did the change affect the budget and the forecast? Were all changes accurately reported on? Does the current budget and forecast reflect the change? Poorly managed change can severely impact the accuracy of reporting and jeopardize the potential success of a project.

Today’s enterprise project controls solutions have been created to help you overcome these challenges, providing a single source of truth to help keep your project on budget and on schedule. I invite you to learn more about our solution, EcoSys EPC (Enterprise Planning & Controls) with this interactive experience. 

Headshot, Adam Cimino

Adam Cimino is the EcoSys Delivery Lead for Intergraph PP&M's efforts in the Asia-Pacific region.