Cost Transparency: Why Budgets Escalate in Construction Projects
The numbers tell a clear story: The average cost increase for public transportation projects is 33%, while for public buildings it is as high as 44%. Notable examples like the Elbphilharmonie, which became 146% more expensive, are just the tip of the iceberg. These massive overruns are often due to poor coordination and inadequate documentation. The trend towards larger projects exacerbates this problem. The share of construction projects with a volume over 500,000 euros has increased from 7% to over 31% in the last 22 years. Precise and comprehensive Project Management for Construction Companies is therefore no longer a luxury but an economic necessity. The ability to keep projects within defined parameters determines the profitability of an entire company. The foundation for this control is a clear understanding of the established project phases.
The Foundation: The 5 Phases of Project Management According to AHO
A structured approach is the key to success. The committee of the associations and chambers of engineers and architects for the fee regulations (AHO) defines a clear framework for project management. This framework is divided into five phases that apply to every construction project. A professional Project Management in Construction is oriented towards this proven structure. Here are the phases at a glance:
- 1. Project Preparation: Here, the fundamentals are identified and feasibility studies are conducted. This phase already accounts for 26% of the total performance of project management.
- 2. Planning: Includes preliminary, design, and approval planning (HOAI phases 2-4) and accounts for 21% of management performance.
- 3. Execution Preparation: Includes execution planning and awarding of construction contracts (HOAI phases 5-7), which corresponds to 19% of the performance.
- 4. Execution: The actual construction phase (HOAI phase 8), where monitoring and coordination are crucial.
- 5. Project Completion: Includes acceptance, handover, and defect rectification, as well as final documentation.
The consistent adherence to these phases lays the foundation for project success. However, mere knowledge of the phases is not enough if the tools used ignore the requirements of the modern construction site. Many companies fail in the practical implementation of this inherently clear structure.
Communication Chaos: When Traditional Methods Fail
In practice, project communication is often dominated by Excel sheets, floods of emails, and countless WhatsApp groups. These fragmented tools can no longer cope with the complexity of modern construction projects. A study by DIW and McKinsey shows that the German construction industry is lagging behind in digitization and exhibits low productivity gains. One main reason is inefficient interface communication. Information is lost, decisions are delayed, and documentation is incomplete and not legally secure. Between 1991 and 2010, the number of employees in municipal administrations dealing with construction issues fell by around 35%, which increased pressure on private Construction Companies for Large Projects even further. Without a central, straightforward system for management and documentation, friction losses arise, leading directly to the dreaded cost and time overruns. The solution lies in the targeted digitization of core processes.
Digital Efficiency: Optimizing Processes and Reducing Errors
Digital tools offer the opportunity to significantly improve productivity in construction. A study by the Institute of the German Economy (IW) confirms that the integration of planning and construction through digital solutions significantly reduces interface problems and errors. The crucial advantage is a central, real-time accessible information status for everyone. Instead of relying on outdated plans or incomplete notes, the entire team works with the same data. Already, 74% of construction companies use AI-based tools in areas like planning, underscoring the enormous potential. A well-thought-out Process Optimization Software in Construction ensures transparency and traceability. It allows for precise progress tracking, early identification of bottlenecks, and decision-making based on solid data. This leads to more efficient Construction Coordination and focuses on what really matters: the successful realization of the project. However, acceptance on the construction site depends on the simplicity of the system.
Valoon: The Simple Revolution for Your Project Management
This is where Valoon steps in and redefines project management for construction companies. Instead of introducing yet another complex app, Valoon uses the tool that everyone on the construction site is already using: WhatsApp. Without the need for training or installation for the construction team, all relevant information is directly transferred from the chat into a structured, legally secure project documentation. This transforms communication chaos into an organized data foundation. The benefits for your successful construction project management are immediately noticeable:
- Automatic Daily Construction Reports: Photos, texts, and voice messages are automatically assigned and compiled into daily reports. Manual effort is reduced by up to 80%.
- Legally Secure Photo Documentation: Each image automatically receives a timestamp and location and is archived securely against manipulation.
- Comprehensive Defect Management: Defects are captured by photo, assigned to a responsible person, and tracked until they are resolved.
- Integrated Time Tracking: Employees can easily report their working hours via message, speeding up payroll processing.
- Overcoming Language Barriers: An integrated live translation in over 20 languages ensures that everyone on the team understands each other.
Valoon makes digital project management as easy as sending a message. This simplicity ensures 100% acceptance on the construction site and provides the office with the structured data it needs for effective control. This finally bridges the gap between the site and the office.
Conclusion: Your Advantage with Valoon
Insufficient project management costs construction companies time, money, and nerves. However, the transition to a digital system does not have to be complicated. Valoon proves that efficiency and simplicity can go hand in hand. By intelligently utilizing WhatsApp, you create a comprehensive and legally secure documentation, increase the efficiency of your processes manifold and improve the communication across the entire team. Take full control of your construction projects and secure your profitability. Take the first step towards uncomplicated and powerful project management. Book your free demo now and experience how easy the future of construction management can be.
More Links
Statista provides an infographic on the largest cost increases for major projects.
Die Hertie School published a study showing that public major projects are on average 73 percent more expensive than planned.
Das Fraunhofer IESE offers a study on digitization in the construction industry.
Das BBSR provides an online publication on the topic of construction and spatial development.
Der DVPEV offers a market study on project management and project control.
Wikipedia provides a comprehensive article on construction project management.
PwC highlights the challenges and pressures in the construction industry in an article.
Das Federal Statistical Office (Destatis) provides official information on construction.
FAQ
What is the cost of project management for a construction company?
The costs for external project management are regulated in the AHO and depend on the project volume. The costs for a software solution like Valoon are significantly lower and predictable. Valoon is completely free for employees on the construction site; costs are incurred only for the users in the office, which significantly lowers the barrier to entry.
Is a WhatsApp-based documentation legally secure?
Yes. Valoon only uses WhatsApp as an input channel. All data such as photos, texts, and voice messages are immediately transferred to secure, GDPR-compliant servers in Germany, marked with an immutable timestamp and location, and structured in an archive. This meets the requirements for evidence-secure documentation.
How long does it take to implement a project management software?
With Valoon, there is no lengthy implementation. Since the system is based on WhatsApp, there is no training effort for the employees on the construction site. The web application for the office is intuitive and ready to use in less than an hour. A project can be set up within minutes.
Does project management also work for small construction projects?
Absolutely. Especially for smaller projects, where margins are often tighter, efficient project management helps secure profitability. The ease of use and low administrative effort make a solution like Valoon ideal for construction companies of all sizes.
