The root cause: Strategic misjudgments in the planning phase
The foundation for the failure of large projects is almost always laid in the early phase. A study by Harvard and Oxford universities involving 2,000 projects shows that less than a quarter is realized as planned. Costs and benefits are often deliberately inflated to secure approval for a project – a phenomenon referred to as ‘Survival of the Unfittest.’ In the case of the Elbphilharmonie, the costs rose from the planned 186 million euros to nearly 900 million euros due to bidding on the basis of incomplete planning. Incomplete planning is the biggest gateway for cost increases. A solid data basis is therefore crucial for a realistic project financing. Without it, all further steps are based on false assumptions. These initial oversights lead to a chain of problems that are hardly fixable during the project progress.
Communication chaos as an accelerant on the construction site
When the planning is inadequate, communication becomes the decisive factor. Yet this is often where chaos reigns. Information is exchanged through unstructured WhatsApp groups, leading to misunderstandings and incomplete documentation. A Roland Berger study shows that with the number of stakeholders in a project, the number of communication interfaces grows exponentially, significantly complicating management. In a project with just 50 stakeholders, there are already over 1,200 possible communication paths. Missing or misallocated information accounts for up to 30% of construction costs due to rework. Clean construction project management is impossible under these circumstances. The consequences are severe and range from incorrect material orders to serious defects that are only discovered late.
Inadequate risk management and lack of control
Many risks remain undetected due to a lack of systematic recording. According to a PwC study, only 40% of companies have an established risk management process for their projects. In the case of the Elbphilharmonie, project risks were massively underestimated, leading to a cost increase of 146%. Comprehensive documentation is the foundation for any effective risk management. It helps to identify problems early and initiate countermeasures before a construction delay becomes unavoidable. Here are typical risks that are often overlooked:
- Personnel shortages: The absence of key personnel is only considered in 15% of risk plans.
- Subcontractor issues: The insolvency of a major subcontractor can delay a project by months.
- Approval delays: Changes in regulations, such as noise protection for Stuttgart 21, can drive costs up by 10 – 20%.
- Material shortages: Price increases and supply bottlenecks are often not buffered sufficiently.
Without active management of these risks, project managers operate in a blind flight. The continuous collection of data directly from the construction site is therefore not a luxury, but a necessity for successful large projects.
The solution: Radical simplification of construction documentation with Valoon
The biggest hurdle for seamless documentation is often the acceptance of employees on the construction site. Complex construction software with hundreds of features is intimidating and goes unused. This is where Valoon comes in. We use the tool that everyone is already using on the construction site: WhatsApp. Employees take photos, videos, or send voice messages as usual. Valoon structures this information in the background automatically and legally secure. This creates a seamless construction diary without additional effort. This addresses several core problems that contribute to the failure of large projects:
- No training effort: Acceptance is nearly 100% because no new app needs to be installed or learned.
- Seamless evidence preservation: Every photo and message is saved with a timestamp and project reference, making it legally valid.
- Overcoming language barriers: The integrated live translation in over 20 languages prevents misunderstandings in international teams.
- Real-time controlling: The office has insight into the current status on the construction site at all times and can respond early to problems and improve the controlling of large projects .
This simple yet effective method closes the gap between the construction site and the office, creating a reliable data basis for all decisions.
Conclusion: Achieving project success with simple means
The failure of large projects is not an unavoidable fate. The causes are almost always a combination of poor planning, unstructured communication, and lack of control. Instead of relying on even more complex processes, the solution lies in radically simplifying the fundamentals. Valoon ensures seamless, legally secure, and simple construction documentation by utilizing the proven tool WhatsApp. You gain the necessary data foundation for effective risk management and transparent project controlling. This reduces rework, avoids cost explosions, and securely leads your projects to success. Safeguard your projects before problems arise. Book your free demo now and learn how Valoon revolutionizes your construction documentation in just 15 minutes.
More Links
Die Hertie School provides a factsheet on large projects in Germany, highlighting the discrepancy between ambition and reality.
An infographic from Statista visualizes the biggest cost increases in large projects.
Die PwC study illuminates the impacts of digitalization, sustainability, and Corona on the construction industry.
A blog post from Fraunhofer IESE presents a study on digitalization in the construction sector.
Der Central Association of the German Construction Industry (ZDB) provides its position paper on digitalization.
Das Federal Ministry of Transport offers a comprehensive guide for the planning and implementation of large projects.
The website of BIM Germany informs about the initiative to promote Building Information Modeling.
FAQ
What are the most common reasons for the failure of large projects?
The most common reasons are incomplete planning before contract signing, underestimating complexity and risks, unclear objectives, poor communication, and inadequate project progress control.
How does Valoon help prevent project failures?
Valoon radically simplifies construction documentation. By allowing employees to use WhatsApp as usual, Valoon creates an automatic, legally secure, and seamless construction diary in the background. This establishes a solid data foundation for controlling and risk management and increases transparency.
Is documentation conducted via WhatsApp legally secure?
Yes. Valoon ensures that all information sent via WhatsApp (images, texts, voice messages) is time-stamped and project-specific, stored on German servers. Thus, the documentation is GDPR compliant and can be used in court as evidence.
Do my employees on the construction site need to learn a new app?
No. That is the decisive advantage of Valoon. Your employees and subcontractors continue to communicate via WhatsApp without needing to install a new app or undergo training. This ensures high acceptance from day one.
Can Valoon also be used in international teams?
Yes, Valoon has an integrated live translation feature for over 20 languages. Text and voice messages are automatically translated into the recipient’s language, breaking down language barriers and avoiding misunderstandings.
How quickly can Valoon be implemented in our company?
Implementing Valoon is straightforward and often takes less than a day. Since employees on the construction site do not require new software, the rollout process is extremely fast and efficient. You can start legally secure documentation immediately.
