In the construction industry, project managers are taught to be proactive, anticipate risks, and plan accordingly. But the truth is when managing large projects, it is sometimes hard to see the warning signs that projects are struggling. We often work in large teams with responsibilities distributed across many people, making it difficult to see the entire project. The churn of day-to-day tasks can make pausing and assessing the project’s overall health challenging, but we know it is critically important to do just that.
What if some early warnings could be easily spotted? What if you could see the flashing lights and act early? Identifying early signs of project distress could provide an opportunity to rectify the situation before the project feels the ramifications.
I offer this list of warning signs as a starting point. It is not an exhaustive list, but it should help steer you in the right direction and give you an indication of a project’s vulnerabilities. The list is based on my own experience as a project manager and risk manager, but also as a claims analyst and expert witness who has analyzed the root causes of poor project outcomes. It also incorporates insights from my many colleagues and reflects on our industry’s best practices and professional standards.
These are signs that your project governance and communication protocols have gone dormant or may never have been clearly established. They also indicate that the project leaders have not invested time in prioritizing and promoting overall team health. Without a highly functioning team and proper collaboration mechanisms to problem solve and make decisions, project delays and associated costs can accumulate and the scope and quality of the project itself may not meet expectations.
Problems with design and design management could result from a lack of skilled design resources, inadequate design oversight, or insufficient owner engagement in the scoping and design review process. Ignoring these signs could lead to serious project consequences.
When a project team struggles to align on the baseline schedule, accurately track project progress, explain why the project is experiencing delays, or constructs the project in a way that no longer resembles the project schedule, these are signs that the project needs schedule management discipline. Schedules are meant to inform and guide, and when they are not effectively utilized, projects are at risk.
Successful projects maintain a project management plan, and successful teams are committed to adhering to their project administration protocols. These warning signs indicate that project administration is lacking, and the team will feel this daily in all areas of operations.
These are indicators of a lapsed quality management program. If not addressed, it will lead to rework, delays, and added costs. While the responsibility to fix quality issues may rest with the contractor, the impact on the project will affect everyone, so it is important for the entire project team to engage in rectifying this.
There are no more important indicators of project success than safety management and safety culture. Warning signs can be seen even at the earliest stage of the project. Not addressing these warning signs can have devastating consequences for personnel and, in turn, the project.
Money is the lifeblood of any project. It is difficult to achieve project objectives if monthly pay applications and the cost of changes are not properly managed and money is not consistently flowing to those performing the work. Cost issues can quickly impact the project’s progress, so it is critical to address them properly.
Whether related to personnel, procurement, or overall corporate management, volatility can impact project progress and serve as a warning sign that a contractor or other project stakeholder has not adequately planned the project or is experiencing some form of internal turbulence.
These eight warning signs may indicate that a project is experiencing some distress. However, this does not mean that the project will not ultimately be a success. If ignored, they can impact the project’s safety, quality, cost, or schedule. If spotted early, there are many mitigations that can ward off long-term impacts.
Instead of using these indicators solely to detect problems, they can also be used to guide the selection of project management tools. This can help in becoming more effective project managers who foresee and anticipate instead of only reacting and responding. These same warning signs also serve as:
When we recognize the potential pitfalls and early warning signs, we can respond sooner. More importantly, planning for these early warning signs can potentially help avoid these risks altogether.
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