Why 80% of Construction Projects Blow Their Budget—And What Small Contractors Can Learn
Executive Brief
The Gist: McKinsey data shows large construction projects run 20% late and up to 80% over budget—driven by faulty scheduling, labor shortages, and supply chain chaos.
- The Trap: Even small residential jobs suffer from the same seven pitfalls plaguing mega-projects.
- The Play: Tighten your scheduling, track costs in real-time, and leverage digital tools to avoid becoming another statistic.
Why This Matters
This isn’t just a big-project problem. HVAC techs, plumbers, and remodelers face identical headaches: unrealistic timelines, surprise material costs, and crew scheduling nightmares. The difference? You can’t afford an 80% budget overrun when you’re running three jobs a month. The article highlights seven killers—faulty scheduling tops the list. Manual calendars and sticky notes won’t cut it when a supplier ghosts you or weather delays a roof install. Smart contractors are switching to digital scheduling platforms that adjust on the fly, track labor hours, and flag cost creep before it tanks your margin. Labor shortages hit residential trades hardest—you need every crew hour optimized. Bottlenecks (permit delays, client indecision) used to kill momentum for weeks; now, software can reroute your team to keep revenue flowing. The takeaway: Big construction’s pain points are your warning signs. Adopt the tech, tighten the process, or watch profits evaporate.
Contractor FAQ
Q: Is this urgent?
A: Yes—if you’re still managing jobs with spreadsheets or guesswork, you’re bleeding money every week.
Q: Financial impact?
A: Fixing scheduling and tracking now could save 10-20% per job—money that goes straight to your bottom line.
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Author: Mike Warner
About the Founder Kore Komfort Solutions is an Army veteran-owned digital platform led by a 30-year veteran of the construction and remodeling trades. After three decades of swinging hammers and managing crews across the United States, I’ve shifted my focus from the job site to the back office. Our New Mission: To help residential contractors move from "chaos" to "profit." We provide honest, field-tested software reviews, operational playbooks, and insights into the AI revolution—empowering the next generation of trade business owners to build companies that last.