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Minimizing construction cost overruns

from Law.com

Construction cost overruns seem to be the norm, not the exception. Research by Dodge Data & Analytics has consistently shown that projects are frequently delivered over budget and late. According to a McKinsey & Co. survey, large projects across asset classes typically take 20% longer to finish than scheduled and are up to 80% over budget. Cost overruns may be caused by poor estimates; overly ambitious scopes, schedules or budgets; weather conditions and/or human errors, among other things. Controlling overruns is key to achieving a successful project. more


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