What is the leading cause of capital project cost & schedule overruns?

The undisputed answer the world over is poor scope definition.  Check out this infographic detailing the 10 commandments of front end planning based on CII’s implementation resource, “Front End Planning – Break the Rules, Pay the Price.”  Each of these 10 practices are proven ways to improve scope definition during front end planning.

What is the leading cause of cost and schedule overruns in projects of any kind? The undisputed answer is poor scope definition. 10 commandments of front end planning; proven ways to improve scope definition as researched by the Construction Industry Institute. First, owners must be actively involved in the front end planning effort. Second, companies must follow a defined and consistent front end planning process. Third, companies must use scope definition tools during the process. Fourth, one must ensure existing conditions are adequately defined to reduce project risk. Fifth, you must determine the correct contracting strategy for the project at hand. Sixth, companies must gain and maintain alignment during the front end planning process. Seventh, companies must build a team with familiarity in the project type, technology, and location. Additional due diligence is needed if this is not possible. Eight, a project team must focus on team building to enhance project performance. Ninth, teams should include experienced and capable personnel for key disciplines. Tenth, companies undertaking renovation and revamp projects must apply extensive coordination and focus on project condition investigation.

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Sandra MacGillivray

Managing Director at Valency Inc.
Sandra is the Managing Director for Valency Inc., an implementer of best practices from the Construction Industry Institute (CII) that dramatically improve capital project performance. She is a Certified PDRI Facilitator, Registered Education Provider (REP) with the Construction Industry Institute (CII), a Project Management Professional (PMP), and a PMI Risk Management Professional (PMI-RMP) with over 15 years of project management experience. Sandra is a past research team member with the Construction Industry Institute on front end planning, risk management and portfolio management. She holds a Bachelor of Science from the University of Waterloo and a Master in Business Administration from Wilfrid Laurier University.