The Billion-Dollar Dilemma: The Facts Behind the Costs of Large Projects
The numbers regarding large projects in Germany are sobering. An analysis of 170 projects shows that costs are, on average, 73% over budget. For completed projects, the additional costs totaled 59 billion euros. Pioneer projects in sectors like energy (+136%) and IT (+394%) are particularly susceptible. But deviations are also significant in building construction (44%) and transportation (33%). Prominent examples like Berlin’s BER Airport, which exceeded its budget by 125%, show that insufficient external controlling and errors in project organization are often the cause. This statistic is a direct consequence of problems that begin in the earliest phase of a project. The complexity and multitude of stakeholders create an environment where traditional control methods fail. To minimize the risks in the construction industry , a shift in thinking is absolutely essential. The foundation for successful management lies in seamless and transparent communication.
Root of the problem: When the left hand doesn’t know what the right is building
A central issue is the “fragmentation of the industry,” as experts describe it. Architects, specialized planners, and the executing trades often work in isolation from each other. Coordination suffers, leading to errors, rework, and delays that can account for up to 10% of total costs. Communication between the construction site and office is often a one-way street or occurs through unsecured channels. Information gets lost, decisions are made based on outdated plans, and legally compliant documentation is often completely lacking. Especially for large projects with hundreds of employees and subcontractors, this problem is compounded. The following communication failures are typical:
- Important instructions get lost in cluttered WhatsApp chats.
- Photos are shared without timestamps and locations, making them untraceable later.
- Language barriers lead to misunderstandings and incorrect execution.
- The manual creation of daily construction reports costs several hours each day.
- Deficiencies are documented too late or inadequately, jeopardizing warranties.
These inefficient processes are a breeding ground for the well-known cost explosions. Improved controlling of large projects therefore begins with optimizing basic information flows.
The solution: Legally compliant construction documentation at the push of a button
Imagine if every piece of information from the construction site – every photo, every note, every time report – would automatically and legally comply land in the correct project folder. That’s exactly what Valoon does by combining the simplicity of WhatsApp with the demands of professional construction documentation. The process is incredibly straightforward and requires zero training for the on-site team. This reduces administrative effort by up to 5 hours per week per construction manager. The workflow is revolutionized:
- An employee takes a photo or sends a voice message via WhatsApp to a project number.
- Valoon processes the data, timestamps it, and, if necessary, translates it into over 30 languages.
- The information is automatically saved as a legally compliant PDF report in the construction diary.
- Project managers in the office have immediate access to all relevant data and can make decisions based on the most current information.
This continuous digital process bridges the gap between the construction site and the office. It establishes the foundation for a successful future of the construction industry, where efficiency and transparency are at the forefront. But it’s not just about data; it’s also about people.
Connecting people: Overcoming language barriers and increasing efficiency
Teams from around the world work together on construction sites in Germany. Language barriers are common here, posing a daily challenge for over 70% of projects. Misunderstandings in work instructions or safety regulations are not only inefficient but also dangerous. Valoon integrates a live translation feature that ensures every employee receives instructions in their native language. This reduces errors caused by misunderstandings by up to 25% as evidenced. A Polish skilled worker can ask a question in Polish, and the German site manager receives it in German – and vice versa. This feature is more than just a technical detail; it is a crucial factor for project success. It fosters a culture of collaboration and ensures that the expertise of each individual is optimally utilized. Such a guide for large projects, based on clear communication, is the key to avoiding costly mishaps.
Conclusion: How to Successfully Manage Large Projects in Germany
Managing large projects in Germany no longer has to be a gamble. The chronic cost and time overruns are not an unavoidable fate but the result of avoidable mistakes in communication and documentation. With an average cost increase of 73%, the pressure to act is enormous. Valoon offers you the solution to master these challenges. We replace the communication chaos with a structured, simple, and legally compliant process based on the widely used tool WhatsApp. Your advantage with Valoon lies in the combination of simplicity, efficiency, and legal security. You save valuable time in documentation, minimize risks through seamless proof, and improve collaboration across all language barriers. Take control of your projects and lead them to success. Book your free demo now and discover how Valoon can revolutionize communication at your construction site.
More Links
Statista provides an infographic that clearly illustrates the largest cost increases in large projects in Germany.
Der The Main Association of the German Construction Industry reports on new builds and the increasing project volume in the German construction industry.
Das Federal Statistical Office (Destatis) provides comprehensive official statistics and data on the topic of construction in Germany.
Die Hertie School offers a detailed factsheet on large projects in Germany that highlights their challenges and realities.
A press release from the Federal Statistical Office (Destatis) provides current numbers and information on the construction sector.
FAQ
How does Valoon ensure the legal security of documentation?
Every message sent via Valoon, every image, and every document is automatically provided with an immutable timestamp and location stamp, and archived in a secure, GDPR-compliant cloud storage. This creates a seamless and evidence-supported construction diary that serves as proof in disputes.
Do my employees on the construction site need to install a new app?
No. This is the key advantage of Valoon. Your on-site employees continue to communicate via WhatsApp, which they already know and use. No training effort or installation of new, complex software is required.
Does the system also support integration with our existing construction software?
Yes, Valoon is designed to seamlessly integrate with your existing IT infrastructure. We provide interfaces to common construction software solutions, allowing you to process your data without media breaks and use it for payroll, controlling, or project planning.
What does Valoon cost for employees on the construction site?
For on-site employees using Valoon through WhatsApp, the service is completely free. Our pricing model is based on users in the office (e.g., project and construction managers) who utilize the full range of the web application for management and evaluation. This lowers the entry barrier and promotes acceptance across the entire team.
