The billion-dollar risk: Cost explosions in urban large-scale projects
The numbers are alarming: Public construction projects in Germany cost on average 73% more than budgeted. In megaprojects with a volume over 500 million euros, costs even double. These figures come from a comprehensive study by the Hertie School, which analyzed 170 projects and found a total cost overrun of 59 billion euros. IT projects are particularly risky with a cost increase of 394%, and energy projects with 136%. Transportation projects are also significantly above plan at 33%. These deficits in the planning and control process represent a significant financial risk for every construction company involved. The complexity and multitude of stakeholders in construction companies for large projects require precise management that begins with communication.
Communication chaos as the main cause of delays and additional costs
One of the main reasons for the failure of schedules and budgets is inadequate communication. Five factors are crucial for the success of large projects: structure, communication, integration, consistency, and transparency. If clear communication channels are missing, misunderstandings and rumors arise, leading to significant resistance and errors in the construction process. Private WhatsApp groups or unstructured emails cannot meet the demands of a project with hundreds of participants and subcontractors. Information gets lost, decisions are not traceable, and coordination fails. A planned and regular exchange of information is essential to keep all participants operational and to the action plan for large projects implemented consistently. Without a central, traceable communication platform, legally secure documentation is impossible.
Legal certainty is not a coincidence: The role of comprehensive construction documentation
Comprehensive construction documentation is not a ‘nice-to-have,’ but the foundation for a smooth construction process and securing your payment claims. Especially for public contracts, documentation according to VOB is of central importance to serve as evidence in disputes. If services rendered are not verifiably proven in the final invoice, the bill will be cut – a direct damage to your liquidity. Incomplete documentation opens the door to conflicts and costly legal proceedings. Structured recording from the beginning not only secures the financing of large projects, but also strengthens your reputation as a professional partner. The following elements are indispensable:
- Daily construction reports with all relevant incidents
- Photo documentation with timestamps and location stamps
- Correspondence and supplementary agreements
- Measurements and quantity determinations
- Acceptance protocols and defect reports
Organizing these documents in a legally sound manner is the central challenge that can hardly be managed without digital tools.
The Valoon solution: Structure and transparency directly from WhatsApp
This is where Valoon comes in and solves the core problems of construction site communication with a radically simple approach. Instead of introducing a new, complex app, we integrate into the tool already used by over 90% of construction employees: WhatsApp. This way, we overcome acceptance barriers and digitize your processes without training effort. Valoon transforms unstructured chats into legally secure data for your office.
Our platform addresses the daily challenges on the construction site:
- Problem: Missing documentation. Employees send photos and voice messages via WhatsApp. Valoon automatically processes these inputs into a complete, VOB-compliant construction diary – including weather data, timestamps, and project assignments.
- Problem: Language barriers. International teams can struggle to communicate. Valoon translates chats and voice messages in real-time into over 20 languages, ensuring clear instructions and fewer errors.
- Problem: High administrative effort. Project managers spend hours gathering information from various channels. With Valoon, all data is centrally available in the web dashboard, filtered, and searchable.
- Problem: Lack of legal certainty. Agreements in private chats are hardly enforceable in court. Valoon archives all communication in compliance with GDPR and inalterably, which is crucial for defending claims or enforcing changes.
This approach makes Valoon a crucial tool for successful large projects.
Increase efficiency, minimize risks: The ROI of digital construction documentation
Investing in clean construction documentation pays off quickly. Companies that digitalize their documentation processes report time savings of up to 5 hours per week per project manager. This time can be directly channeled into the active management of the project, rather than spent on reactive information search. Avoiding just a single invoice reduction of 5% on a medium-sized contract can cover software costs multiple times over. The digital capture of measurements, time sheets, and defects reduces manual effort by up to 80%. Through transparent communication and clear task assignments, the error rate significantly decreases. This is an important step to actively shape the future of the construction industry and remain competitive.
Conclusion: This is how you steer urban large-scale projects to success
Urban large-scale projects do not have to be unpredictable risks. The massive cost overruns averaging 73% are not fate but often the result of avoidable errors in communication and documentation. The key to success lies in the combination of simplicity, efficiency, and legal certainty. By opting for a solution like Valoon, which arrives directly on the construction site without training effort, you create the necessary transparency. You ensure that every agreement, every defect, and every progress is documented comprehensively and securely. This not only minimizes financial risks but also increases the efficiency of your entire project handling. Take the first step to bring your projects safely to completion.
Book your free demo now and discover how Valoon revolutionizes communication on your construction site in just 15 minutes.
More Links
Statista provides an infographic on the largest cost increases in large projects.
The Federal Statistical Office provides comprehensive data and statistics on building, industries, and companies.
LTO reports on a Hertie study showing that large construction projects do not necessarily have to fail.
PwC provides information on the efficient management of large projects in the public sector, especially through the use of dashboards in multi-project management.
PwC analyzes in an article the current challenges and pressures the construction industry faces.
Roland Berger publishes a publication on the digitalization in the construction industry and its impacts.
German Construction Industry Association (ZDB) presents a position paper on digitalization in the construction industry.
Wikipedia provides an overview of the Federal Association for Software and Digitalization in Construction (BVBS).
Main Association of the German Construction Industry provides industry information on new buildings with increasingly large project volumes.
FAQ
How does Valoon help save costs in large projects?
Valoon saves costs by automating and securing communication and documentation. This reduces administrative effort, minimizes errors through clear instructions (even across language barriers), and secures your payment claims through comprehensive, VOB-compliant documentation generated directly from WhatsApp.
Is the use of WhatsApp for construction documentation GDPR-compliant?
Private use of WhatsApp is not GDPR-compliant for business purposes. Valoon solves this problem by acting as a secure, GDPR-compliant intermediary. Communication runs through our servers, is legally secure archived, and meets all GDPR requirements.
Do my employees have to install a new app?
No. That is the decisive advantage of Valoon. Your employees on the construction site can continue to communicate as usual via WhatsApp. No new app, no training, and no adjustment are necessary. All technical processing and archiving happen in the background.
For which types of construction projects is Valoon suitable?
Valoon is suitable for any type of construction project, from small renovations to urban large-scale projects. The benefits – simple communication, comprehensive documentation, and legal certainty – scale with the project size and are particularly evident in complex undertakings with many participants.
How quickly can Valoon be implemented in our company?
Valoon can be set up in minutes. You create a project, add the phone numbers of your employees, and they are invited to a WhatsApp group. The process is completed in less than 15 minutes and you can immediately start with legally secure documentation.
What does Valoon cost for employees on the construction site?
For employees on the construction site, using Valoon via WhatsApp is completely free. Our pricing model is based on users in the office (e.g., project managers) who access the web dashboard to evaluate and manage the data. This lowers the entry barrier and promotes acceptance across the entire team.
