WHY The Most of Construction Projects Failed

A Startling Fact
The Most Of Construction Projects Failed
一个惊人的事实
大多数的建筑项目都是失败的

by Louis Wang & BDAE Consulting

If you are going to take the operation or related with construction projects for any type of building, please to read this article carefully, this article could be a important reminder to let you avoid project risks and save the big budget.
如果你准备参加任何类型的建筑项目的运营或相关工作，请仔细阅读这篇文章，这篇文章可能是一个重要提醒，让你避免项目风险和节省大笔预算。

First of all, let me present a case.
A very famous German automobile brand, from the year of 2007 - 2015, to setup the complete new huge plant in China, split in 3 phases. For phase one, there was the budge about 3 billions only for infrastructure ( not including any production equipment ). But in 2011, this mony was bigger than 5 billions. I called it as Typical Project Failure.
This company has the top brains, top facilities, top industrial chains, and top so-called management patterns, but problem is, WHY?
首先，让我介绍一个案例。
一个非常著名的德国汽车品牌，从2007年到2015年，在中国建立了完整的新的巨大的工厂，分为三个阶段。在第一阶段，有大约30亿的预算用于基础设施（不包括任何生产设备）。但在2011年，这笔钱超过了50亿。我把它称为典型的项目失败。
这个公司有顶级的头脑，顶级的设施，顶级的产业链，以及顶级的所谓管理模式，但问题是，为什么？

How and Why can we judge a project as failed ?
我们如何以及为什么可以判断一个项目是失败的？

Theoretically we have common and standard understanding about some critical factors of project execution, illustration as below.
理论上，我们对项目执行的一些关键因素有共同和标准的理解，如下图所示。

In fact, for a project, from the beginning until the end, the core issue what we need to do, or what we are going to do is, to find and keep the balance between these critical points, to achieve the final quality result as expected. If you look deeper inside of some failed projects, definitely you will find unbalance situation about these critical points. Furthermore, more bigger company,  more difficult to stick to a common target, and more easier to lost the balance.
事实上，对于一个项目来说，从开始到结束，我们需要做的，或者说我们要做的核心要务是，找到并保持这些关键点之间的平衡，以达到预期的最终质量结果。如果你深入了解一些失败的项目，你肯定会发现这些关键点的不平衡情况。此外，公司越大，就越难坚持一个共同的目标，也越容易失去平衡。

The worst project model is, three on-the-way project, at least we call it in China. This worst model includes 3 worst problem:
1- Planning & Designing at same time;
2- Designing & Constructing at same time;
3- Construting & Modifing at same time.
最糟糕的项目模式是，三个同时进行，我们在中国称之为三边工程。这种最糟糕的模式包括三个最糟糕的问题。
1- 规划和设计同时进行。
2- 设计和施工同时进行。
3- 施工和修改同时进行。

But, is this the root reason ? My answei is, NO.
但是，这是根本原因吗？我的答案是，不是。

Many higher management people are not willing to admit that, project should be based on a company management system, a failed project means this company has sort of defective management pattern, and the defective management pattern to give the wrong direction, wrong request, or wrong key person to lead the project.
很多高层管理人员不愿意承认，项目应该建立在公司管理系统的基础上，一个失败的项目意味着这个公司有某种缺陷的管理模式，而这种缺陷的管理模式给了错误的方向，错误的要求，或者错误的关键人物来领导项目。

Another truth is, for a experienced & sophisticated person, base on the initiating situation of a project, about organization struction and people's qualify, it is higher possiblity to make a judgement what the project will become. Normally, a defective project will be ended with more higher cost, higher cost may occur during the project execution, or during the furture maintenance period.
另一个事实是，对于一个有经验的和成熟的人来说，根据项目的启动情况，关于组织结构和人的素质，可以大概率的判断该项目将变成什么样子。通常情况下，一个有缺陷的项目将以更高的成本结束，更高的成本可能发生在项目执行期间，或在未来的维护期间。

One interesting thing is, in nearly all failed project, you will find a kind of phenomenon, it is very hard to dig out the specific responsible persons.
一个有趣的事情是，在几乎所有失败的项目中，你都会发现一种现象，就是很难挖出具体的责任人。

Let's come to the primary topic directly, accroding to my personal recognition and oberservation. Why a construction project would be failed ?
根据我个人的认识和观察，让我们直接进入主要话题。为什么一个施工项目会失败？

Importance as sequence, first one is the most important.
重要性按顺序区分，第一条是最重要的。

1- Mangement Underestimate Complexity of Construction Engieering.
    管理层低估了施工工程的复杂性。

Many many non-construction companies would make wrong judegement about this point, they have no idea about entire progress how a construction project going on, and this is the root reason that will lead a sereis mistakes.
许多非建筑工程公司会在这一点上做出错误的判断，他们不知道整个建筑项是如何进展的，这就是导致错误的根本原因。

phenomenon:
- just follow common internal process to handle construction project.
- not put construction project on priority.
- randomly to appoint a person as leader for project.
- provide uncomplete resources to project.
现象：
- 只是按照普通的内部流程来处理建筑项目。
- 不把建筑项目放在优先位置。
- 随意指定一个人作为项目的领导者。
- 为项目提供不完整的资源。

2- Management Does Not Respect the Natural Rules of Construction Engineering.
    管理层不尊重建筑工程的自然规则。

Same as other fields, construction engineering has its own natural rules. Disobeying the natrual rules will lead unbelievable mistakes.
和其他领域一样，建筑工程也有自己的自然规则。违背自然规则将导致令人难以置信的错误。

phenomenon:
- more modifications.
- additional  investment.
- let natural rules to match company's process.
现象：
- 更多的修改。
- 额外的投资。
- 让自然规则与公司的流程相匹配。

3- Management Does Not Undersand Local Market the Project Located in.
    管理层不了解项目所在地的市场。

phenomenon:
- decisions against local policies.
- choose wrong design institute.
- choose wrong main contractor.
- additional investment & additional construction period.

- 与地方政策相悖的决定。
- 选择错误的设计院。
- 选择错误的主要承包商。
- 额外的投资和额外的施工期。

4- There are two or more main powers to lead or affect the operation of a project.
    有两种或更多的主要的力量来领导或影响一个项目的运作。

It is very common in many joint venture companies, and honestly I saw and I knew many project cases in China region and in other countries. Money joint does not mean the target joint, this is very important reason of project failed in so many joint venture companies.
这在很多合资公司中非常普遍，说实话，我在中国地区和其他国家看到和知道很多项目案例。资金联合不等于目标联合，这是很多合资公司项目失败的重要原因。

5- Lack of efficient communication channel or method.
    缺乏有效的沟通渠道或方法。

Inefficient communication equals to inefficient actions, this is unacceptable in all enterprise's activities. Actually half reason is from the management pattern, half reason is from the people quality. Also this is primary phenomenon of big-company-sick.
低效率的沟通等于低效率的行动，这在企业的所有活动中是不可接受的。其实一半的原因来自于管理模式，一半的原因来自于人员素质。这也是大公司病的主要现象。

6- All Other Minor Reasons During the Execution Period of Project.
    项目执行期间的所有其他次要原因。

Mentioned above 1-5 are primary reasons to lead a project to final success or failure, these primary reasons actually decide the nearly all critical points during the project execution, so I call the reasons during the exection as the minor. If you have clear concepts and targets for the points as blow, thus your project is very close to the success.
- key person/project leader who can have the power to ignore unnecessary interference.
- working scope or working amount.
- reasonable budget plan.
- reasonable schedule.

上面提到的1-5条是导致项目最终成功或失败的主要原因，这些主要原因实际上决定了项目执行过程中几乎所有的关键点，所以我把执行过程中的原因称为次要原因。如果你对以下几点有明确的概念和目标，那么你的项目就会非常接近于成功。
- 关键人物/项目负责人可以有权力忽略不必要的干扰。
- 工作范围或工作数量。
- 合理的预算计划。
- 合理的时间表。

All content above is the conclusion of my many years' experience and oberservation in the field of construction engineering. Of course the each point could be understood a another bigger professional scope. After reading this paper, if you have better understanding about complexity of construction project, I am pleased that you can recognize these critical points in your project and possibly you can achieve better result.
以上所有内容是我在建筑工程领域多年的经验和观察的结论。当然，每一点都可以从另一个更大的专业范围去理解。阅读本文后，如果你对建筑项目的复杂性有了更多的了解，我很高兴你能在你的项目中认识到这些关键点，并可能取得更好的结果。

Thank you for your attention to read this article.
If you have similar questions or you are confusing with some construction project, you are welcome to contact, I would like to provide some preliminary advices without any charge.
感谢你注意阅读这篇文章。
如果你有类似的问题，或者你对一些建筑项目感到困惑，欢迎你联系，我愿意免费提供一些初步建议。

All of my blog articals to see: 我的所有博客文章请见：
http://gosblog.cn/category-30.html

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