The problem: Why 7 out of 10 large projects become more expensive than planned
The numbers are alarming: An average cost overrun of 73% for public large projects in Germany is a clear warning signal for the entire construction industry. For megaprojects with a volume over 500 million euros, costs even double on average. According to the final report of the reform commission on large projects, the causes are manifold: Often, costs are already quantified before a reliable plan exists at all. Additionally, there is an inaccurate determination of client wishes and a lack of risk management, leading to costly planning changes during execution. This unstructured approach leads to a domino effect of delays, claims, and legal disputes. A systematic guide for large projects is therefore essential. Without a clear action plan, even experienced project managers navigate blindly. The consequences are not only financial losses but also a damaged reputation with clients and investors. These challenges require a fundamental cultural shift towards greater transparency and cooperation.
Foundation of success: The 4 pillars of your action plan
The official action plan of the federal government defines 10 central fields of action, which can be translated into four strategic pillars for your company. These form the framework for a robust action plan for large projects and address the core issues directly. A central point is the collaborative cooperation of all parties involved to overcome the often confrontational attitude on construction sites. The second pillar is rigorous management of planning, costs, and risks, which starts already in phase zero. Thirdly, the plan calls for transparent and fair procurement, favoring the economically most viable partner rather than the cheapest. The fourth and perhaps most important pillar is comprehensive digitalization to improve transparency, control, and communication. Here are the four pillars at a glance:
- Partnership & communication: Establish a culture of cooperation and open information exchange.
- Planning & risk management: Conduct a detailed needs analysis (phase zero) and implement ongoing risk management according to ISO 31000.
- Procurement & contracting: Use qualitative criteria in procurement and design contracts to be clear and fair.
- Digitalization & transparency: Leverage digital tools like BIM and communication platforms for seamless documentation and control.
The consistent implementation of these four pillars is crucial for the success of large projects and the avoidance of typical pitfalls.
Phase 1: Detailed planning and risk assessment
The principle ‘Plan first, then build’ is a central demand of the action plan and must take top priority. Every change in planning during the construction phase causes exponentially increasing costs. A study by the Federal Foundation for Construction Culture emphasizes the importance of ‘phase zero’, an intensive analysis phase before actual planning. In this phase, at least 95% of all requirements from clients and users must be clarified in detail and bindingly. Ongoing risk management, aligned with ISO 31000, is mandatory from day one. Risks must be identified, assessed, and documented with concrete mitigation measures before even a euro is spent. In practice, this means:
- Conduct detailed needs analyses with all stakeholders before starting the planning.
- Create a seamless execution plan for the entire project before construction begins.
- Implement a risk register that captures and assesses all potential hazards from the construction site to supply chains.
- Communicate costs and deadlines only when a reliable, checked plan is in place.
This disciplined approach prevents many of the reasons for the failure of large projects and creates a solid foundation for execution.
Phase 2: Seamless communication and legally secure documentation
One of the main causes of problems in large projects is inadequate communication and lack of coordination. Information silos between the office, construction site, and various trades inevitably lead to mistakes, which account for an average of 33% of costs in transport construction. Therefore, the action plan demands a lived culture of cooperation in which all project partners possess the same information. This is exactly where modern digital tools play a role. Valoon transforms unstructured communication via WhatsApp into legally secure, automatically logged channels. Every instruction, every defect report, and every construction daily report is directly assigned to the correct project and is traceable at any time for all authorized persons. This meets the demand for greater transparency and control and creates a seamless chain of evidence in case of disputes. Effective controlling for large projects thus becomes possible. The automatic live translation also overcomes language barriers, which can lead to misunderstandings and costly errors on construction sites with international teams.
Phase 3: Transparent procurement and partnership contracts
Awarding to the cheapest supplier is often the beginning of the end. The action plan unequivocally recommends awarding the contract to the most economically advantageous offer, taking quality criteria such as the effectiveness of risk management or the personnel’s experience into account. Companies submitting at self-cost often speculate on achieving their margin through additional claims, leading to constant conflicts. Partnership project collaboration, which is already anchored in the contract, is a key lever for success. This includes clear regulations for out-of-court dispute resolution and incentive systems like bonus-malus arrangements to align the interests of clients and contractors. Transparent communication about the financing of large projects creates additional trust. For your procurement strategy, you should therefore define at least 3 qualitative award criteria that go beyond just the price.
Phase 4: Digital control with BIM and mobile tools
The consistent use of digital methods like Building Information Modeling (BIM) is a core point of the action plan. BIM allows a project to be built first virtually and then in reality, reducing planning errors through collision checks by more than 40%. It creates a synchronized database that everyone can access, significantly increasing transparency and cost certainty. However, BIM alone does not solve the problems on the construction site. The bridge between the digital model in the office and the implementation on-site must be built. Valoon complements complex construction software with an extremely simple interface on the construction site: WhatsApp. Employees do not need to learn a new app. They send photos, videos, and voice messages as usual, while Valoon automatically documents everything legally secure and structured in the background. This ensures acceptance and guarantees that the valuable data from the construction site actually gets into the system and supports the agile management of large projects .
Conclusion: Your advantage with Valoon
A successful action plan for large projects requires a cultural shift towards greater partnership, transparency, and digital competence. Implementing the official recommendations is not a bureaucratic act but an economic necessity to remain competitive. Valoon is your direct partner in implementing the crucial points: We create a seamless and legally secure communication chain among all parties involved, eliminate misunderstandings due to language barriers, and reduce manual documentation effort by up to 75%. You gain full control and transparency without burdening your staff on site with complex software. This way, you can simply and efficiently implement the demands for digital control and cooperation. Minimize your risks in the construction industry and secure your margins. Book your free demo now and learn how Valoon revolutionizes communication in your large projects.
More Links
Fraunhofer ISI provides insights into the institute’s research topics in the field of construction economics.
FAQ
How does Valoon specifically help implement the action plan for large projects?
Valoon directly implements central demands of the action plan: It creates transparent, legally secure communication channels, improves partnership collaboration through seamless information flow, and ensures digital, automatic documentation from the construction site to the office – without requiring employees to learn a new app.
Is communication via Valoon legally secure and GDPR-compliant?
Yes, absolutely. Unlike the private use of WhatsApp, Valoon is a professional corporate solution. All data is stored on German servers, processed in compliance with GDPR, and archived in a way that can serve as evidence in legal disputes.
Our employees on the construction site speak many different languages. Does Valoon help with that?
Yes. Valoon has an integrated live translation feature. Voice messages and texts are automatically translated into the recipient’s respective language. This reduces misunderstandings, prevents costly mistakes, and fosters collaboration among international teams.
Do our employees on the construction site need to install a new app?
No, and that’s the key advantage. Employees on the construction site continue to use WhatsApp as usual. Valoon integrates seamlessly and processes the data in the background. This ensures 100% acceptance and requires zero training effort.
What advantage does an action plan provide for private construction companies?
Although the original action plan was developed for public projects, the principles are universal. Private construction companies can secure their margins, minimize risks, increase customer satisfaction, and significantly enhance their competitiveness through more efficient and transparent processes via a structured action plan.
What does Valoon cost for employees on the construction site?
For employees on the construction site who communicate through WhatsApp, Valoon is completely free. Costs only arise for users in the office who utilize the web application for management, documentation, and analysis. This pricing model significantly lowers the entry barrier.
