Why Construction Projects Go Over Budget — And How We Avoid That at Metal Solutions

by | Jun 28, 2024 | Blog

Let’s be honest —if you’ve ever heard of a construction project finishing under budget and ahead of schedule, you were probably dreaming. 

Cost overruns are one of the biggest headaches in construction. Whether you’re building a backyard shop or a commercial facility the size of a football field, poor planning, lack of transparency and unclear communication and expectations can cause major problems. 

We’ve spent over 16+ years mastering how to keep projects on track, on budget, and built right. We believe in doing things the right way the first time. Here’s what we’ve learned over the years about managing project budgets — and how we do things a little differently here in Big Spring.

The Problem with Cost Overruns 

Every business tries to reduce waste. But in construction? Cost overruns almost feel like a given. They’re so common that many people in the industry have simply come to expect them.

And the impact? It’s huge. Time gets eaten up trying to secure new funding, renegotiate contracts, and seek extra approvals — all while deadlines slip. Meanwhile, physical infrastructure can deteriorate while waiting, adding even more pressure (and dollars) to the bottom line.

When all is said and done, it hits where it hurts most: the wallet. Whether it’s a small-town build or a multimillion-dollar commercial project, cost overruns can drain budgets, test relationships, and derail momentum.

Most of the time, when a project goes over budget, it’s not because someone made one big mistake: it’s because of a handful of small issues that stack up fast.

Why Do Projects Go Over Budget?

Most cost overruns start early, way before anyone breaks ground. That’s because at the beginning of a project, teams are working with what’s known as soft data: rough estimates, generalized numbers, and assumptions. Only later do we begin to gather hard data — actual material costs, labor hours, timelines, etc. That’s when we start to see the real picture… and sometimes, the damage.

The most common drivers of cost overruns include:

  • Unclear expectations
  • Incomplete plans
  • Risk assessment (or the lack of it)
  • Unrealistic or misleading bids
  • Supply-chain issues
  • Too many subcontractors
  • Design flaws or scope creep

Most of these trace back to one central issue: poor project management.

The Real Culprit Behind Cost Overruns 

At the center of most cost overruns is poor project management.

That doesn’t mean someone’s doing a bad job — it often means too many people are doing too many disconnected jobs. Without a single, clear point of ownership, things fall through the cracks. Planning, estimating, scheduling, and execution get siloed. Delays stack up. Decisions get made too late (or not at all). And suddenly, the budget is off and no one’s sure who’s accountable.

Here’s what that looks like on the ground:

Unclear or incomplete plans
When clients bring in a rough idea and builders don’t ask the right questions, the gaps don’t show up until construction is underway. By then, changes can be expensive and frustrating.

Unrealistic or misleading bids
Some contractors underbid to win the job, knowing the price will climb later. It works in the short term, but it almost always leads to disappointed customers and strained relationships.

Too many players, not enough coordination
Relying on multiple subcontractors and out-of-town suppliers means more moving parts and more room for things to go wrong. One miscommunication can cause delays that ripple across the entire project.

Supply chain issues
Even the best-laid plans can be thrown off by delayed deliveries or material shortages. Without strong systems to anticipate and respond to those delays, projects stall — and costs spike.

Here in West Texas, it’s easy to think small-town contractors are insulated from these big-city problems. They can be devastating. Smaller projects have tighter budgets, less room for error, and far more at stake when things go wrong.

So having an experienced team with strong leadership and project management expertise is crucial. Without it, even simple projects can spiral out of control fast.

Government vs. Private Sector

Historically, government construction projects have become almost synonymous with cost overruns. This dates all the way back to the Erie Canal in 1817, a project that ballooned far beyond its original budget.

Research indicates that underestimation is a normative feature of institutional incentives. This practice is encouraged by:

  • exemption from the profit-motive
  • political motivations
  • strong union and legal protections for managers

Without a profit motive, concern for costs becomes a political decision instead of an economic calculation. On top of that, managers with poor performance are difficult to remove to ensure the best talent and skills can successfully implement the project. 

Add in bureaucratic red tape, strong legal protections for managers, and minimal accountability for poor performance… and it’s easy to see why many public projects spiral out of control.

That said, private companies aren’t off the hook. According to McKinsey & Company, nearly 80% of private construction projects go over budget, and 20% are delivered behind schedule.

The difference? Government projects make headlines. Private projects just quietly eat into the bottom line.

Complexity In The Modern Construction Site

Construction today isn’t what it was 20 years ago. The ever-increasing complexity of the modern construction site adds more zeros to the final price tag. 

Sites are more complex. Client expectations are higher. Materials are more specialized. And software tools, while powerful, require skilled, certified (and expensive) operators to run them.

All of that adds up.

From sourcing custom materials across international supply chains to coordinating dozens of subcontractors on tight timelines, the complexity of a modern build makes it harder than ever to predict and control costs.

And when complexity goes up, so does the risk of overruns.

It’s like trying to build a sandcastle during high tide: if you’re not paying close attention to the waves, everything can wash away before it’s finished.

The Metal Solutions, Solution: Vertical Integration

We run things differently at Metal Solutions and it’s all thanks to one key strategy: vertical integration.

We know that sounds like corporate jargon. But here’s what it really means: we keep as much of the project under one roof as possible. 

The best way to approach cost overrun in construction is to manage the problems by vertically aligning the supply chain. It’s typical to layer organizations and to spread risk around, but this increases costs in the process, and these costs usually appear in administration, insurance, and contingencies. 

By doing everything in-house, we cut down on miscommunication, reduce delays, and eliminate the finger-pointing that happens when multiple companies are involved. 

That includes the design, the build, the materials, even the team swinging the hammers.

Our crews know our process, our standards, and our expectations — and they collaborate and work together every day to get the job done right.

Plus, we fabricate our own metal through our sister company, Bulldog Steel. Which means we’re not waiting on someone else to ship parts across the country. We know what we have, where it’s going, and how it fits into your build.

Bottom line? Fewer middlemen means fewer mistakes. It also means faster timelines and more accurate pricing, which is exactly what customers want. 

Big Ideas in Big Spring, Texas 

Let’s face it — Big Spring isn’t Dallas or Austin, and we’re proud of that. Around here, customers appreciate transparency, honest work, and people who show up when they say they will.

When you’re building, you can’t afford to overcomplicate things. You need a contractor who understands the local economy, the local codes, and the unique challenges that come with West Texas weather.

Because we’re based right here in Big Spring, we’re not just familiar with the area — we’re invested in it. . That gives us a level of insight and care that out-of-town builders just can’t match.

And since we keep things local, we’re not waiting on materials to arrive from five states over. We can move quicker, adjust faster, and get your project off the ground without a bunch of red tape slowing things down.

We believe construction doesn’t have to be complicated and it definitely doesn’t have to break the bank.

When you work with Metal Solutions, you’re not just hiring a builder. You’re partnering with an experienced crew that’s been doing this for over 16+ years, right here in your own backyard. 

We take pride in our work, we stand by our word, and we treat every build like it’s our last. 

So if you’re tired of delays, surprise costs, and contractors who don’t call you, swing by the office or shoot us an email. We’ll walk you through the process, get you a quote on pricing, and build something that will last for decades to come. or any kind of structure, or simply need a reliable, thoughtful contractor who has eliminated waste from the equation altogether, we’d appreciate you reaching out to us. 

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