The reality of large projects: Why 7 out of 10 projects fail
The statistics for large projects in Germany are sobering: A study by the Hertie School of Governance revealed average cost increases of 73% across 170 examined projects. In the transport sector, the additional costs average 34%, with individual road construction projects becoming up to 125% more expensive than planned. These figures are not exceptions but the result of systematic problems. Budgets are often approved on the basis of politically motivated estimates long before a robust plan even exists. The government’s reform commission identified a lack of collaborative partnership and insufficient use of digital methods as core issues. These deficits lead to a vicious cycle of planning changes, construction delays, and spiraling costs, which can only be broken through a structured approach. A key lever is the effective project management, which establishes clear structures from the very beginning. The following analysis shows how a practical guide addresses these challenges.
Phase 0: Laying the foundation for project success
The official guide for large projects from the Federal Government emphasizes that the most important decisions for success are made before the actual planning begins – in the so-called ‘Phase 0’. In this crucial preparatory phase, project goals are defined bindingly, and a clear risk management is established. Here, a ‘project charter’ is formulated that operationalizes the goals and clearly assigns responsibilities. Instead of vague agreements, measurable criteria for costs, deadlines, and quality are set. At least 80% of later problems can be traced back to errors in this early phase. A central tool here are the ‘Guidelines for the Planning and Construction Phase’, which set a priority for project requirements. This ensures that all stakeholders have a shared understanding of the action plan of the large project . This early structuring prevents later costly changes and creates a solid foundation for all subsequent steps.
Establishing collaborative partnership as a driver of efficiency
A central lever for avoiding conflicts and costs is the establishment of a collaborative project culture, as demanded by the reform commission. Instead of confrontational negotiations over change orders, a win-win approach is pursued, where clients and contractors pursue common goals. The guide from the Federal Ministry suggests concrete tools for this, such as a joint project charter or cooperative contracting models with bonus-malus systems. An essential aspect is open communication about risks and challenges. Projects with a lived partnership culture reduce the effort for processing change orders by up to 40%. Valoon supports this approach by creating a transparent and direct communication bridge between the office and the construction site. This allows issues to be discussed early and solution-oriented, rather than escalating into email chains. This strengthens trust and promotes the collaboration so vital for the success of large projects .
Digital documentation: Your legally secure guide for large projects
Comprehensive and legally secure documentation is the backbone of every successful large project. It not only serves transparency but is a decisive piece of evidence in disputes. Manually creating daily construction reports and assigning photos by hand costs valuable time daily—up to 60 minutes—and is extremely error-prone. This is where digital construction documentation comes into play. Good software automates the collection of weather data, photos with timestamps, and GPS data, ensuring structured storage. Valoon goes even further by integrating these processes into the familiar WhatsApp chat. Employees on the construction site can send information, photos of defects, or timesheets simply by message. The platform processes this data automatically and creates legally secure daily construction reports and logs from it – a time saving of over 80% in documentation work. This efficiency and the ease of use without a new app make Valoon the ideal tool for implementing the guidelines for the planning and construction phase in practice.
Continuous controlling through quality gates and risk management
The Federal Government’s guide provides for fixed ‘quality gates’ before the start of each new project phase. During these meetings, the project status is systematically reviewed by an interdisciplinary team to ensure that all prerequisites for the next step are met. This prevents errors or incomplete plans from being carried over into the next phase. In parallel, continuous risk management must be established. Here, risks are not only recorded once but continuously reassessed and measures for control are determined. A study shows that active risk management can reduce the likelihood of cost overruns by more than 50%. With Valoon, project managers receive real-time insights into construction progress and can immediately recognize and counter risks such as material shortages or defects. This transparency is the basis for effective controlling of large projects and ensures that decisions are made based on current data.
Conclusion: Achieving project success through structure and digital tools
Successful management of large projects is not a coincidence but the result of a structured approach. The Federal Government’s official guide provides the perfect framework to keep costs, deadlines, and quality in check. The key factors are careful preparation in Phase 0, a collaborative project culture, and comprehensive, digital documentation. Valoon is the ideal tool to easily and efficiently implement these principles in practice. By seamlessly integrating into WhatsApp, any training efforts for the construction site are eliminated, while the office benefits from automated, legally secure reports. This creates the necessary transparency and efficiency to successfully complete your next large project as well. Take control and put an end to communication chaos. Request your free demo now and experience how easy the digitalization of your construction documentation can be.
More Links
Federal Ministry for Digital and Transport (BMDV) provides information on hydrogen large projects.
Federal Statistical Office (Destatis) provides statistics and information on the topic of construction.
Federal Office for Building and Regional Planning (BBR) provides information on federal construction projects.
German Institute for Standardization (DIBt) is a technical approval office in the construction sector and offers comprehensive information on construction products and methods.
Association of German Engineers (VDI) provides information on its technical guidelines relevant for planning and executing projects.
DIN Media provides detailed information on DIN standard 32835-1, which is important for standardization in project management.
FAQ
What is the Large Projects Guide?
The ‘Large Projects Guide’ is an action framework published by the Federal Ministry of Transport and Digital Infrastructure (BMVI). It specifies the recommendations of the Reform Commission for the construction of large projects and provides practical tools to plan and execute projects in a cost-, time-, and quality-conscious manner.
Why is ‘Phase 0’ so important in large projects?
‘Phase 0’ is the project preparation phase before the actual planning starts. It is crucial because this is where the fundamental foundations for project success are laid, e.g., through the definition of clear goals, establishment of risk management, and determination of project organization. Errors in this phase are difficult and costly to correct later.
How can Valoon help with implementing the guide?
Valoon helps implement the principles required in the guide, such as transparent communication and comprehensive documentation, easily. By integrating with WhatsApp, construction progress, defects, and other relevant data can be captured directly from the site in a legally secure and automated manner, without employees needing a new app. This saves time and creates the data foundation for effective controlling.
What are ‘quality gates’ in a large project?
Quality gates, also called ‘quality gates’, are fixed milestones in the project course, typically before transitioning into a new phase. At these points, the planning status is systematically reviewed by an interdisciplinary team to ensure quality and to decide whether the prerequisites for the next project step are met.
Is digital construction documentation legally recognized?
Yes, properly conducted digital construction documentation is legally recognized and serves as evidence. It is important that the entries are comprehensive, timely, and tamper-proof, e.g., by using immutable timestamps and GPS stamps with photos. Platforms like Valoon ensure this legally secure capture.
What is the average cost overrun for large projects in Germany?
Studies show that the average cost overruns for public large projects in Germany are about 73%. In the infrastructure sector, the increases for road projects average 30%, and in the energy sector even 136%.
