Common Causes of Cost Overruns

Unexpected expenses during site development often result from scope changes, inaccurate estimates, or unforeseen site conditions.

• Poor soil, drainage issues, or utility conflicts can require additional earthwork or redesign
  
• Material price fluctuations (cement, steel, fuel) can raise construction and infrastructure costs

Risk of Timeline Delays

Delays are common in industrial projects due to dependencies on permits, contractors, or third-party utility agencies.

• Permit processing (zoning, electricity, water, pollution control) can take longer than expected
  
• Weather conditions, labor shortages, or equipment delivery delays can stall progress

Mitigation Strategies

While these risks are real, they can be reduced with planning, contractual safeguards, and experienced project teams.

• Include a 5% to 10% contingency budget to manage financial overruns
  
• Build in buffer time in the project schedule for permits and procurement
  
• Use fixed-price contracts and phased development to limit exposure