Why Construction Projects Fail: 3 Root Causes (and How to Prevent Them)

This article was originally published on LinkedIn.
I've expanded it here with additional insights and examples based on reader feedback.

"For want of a nail, the shoe was lost.
For want of a shoe, the horse was lost.
For want of a horse, the rider was lost.
For want of a rider, the battle was lost.
For want of a battle, the kingdom was lost —
All for the want of a horseshoe nail."

— Popularized by Benjamin Franklin, 1758

This centuries-old proverb reminds us that small oversights can lead to enormous consequences.
Nowhere is that truer than in construction.

Each year, the global construction industry spends over $15 trillion — and nearly 10% of that is wasted due to inefficiencies, delays, and mismanagement.
That's $1.5 trillion lost annually, often due to something simple: lack of clarity.

So why do construction projects keep failing?

And more importantly — what can we do about it?

The Project Manager's View: On the Ground, Where It Counts

This article isn't a summary of Bent Flyvbjerg and Dan Gardner's excellent How Big Things Get Done.
Their research shows that 92% of megaprojects go over budget, schedule — or both.

Instead, I'm writing from the field — as a Project Manager on the contractor side, where success isn't theoretical.
It's daily, it's lived, and it's earned in execution.

After years of managing teams, navigating surprises, and searching for answers, I've realized that most failures trace back to three core root causes:

The 3 Reasons Projects Fail:

• 1. Project Success Definition
• 2. Lack of Details
• 3. Project Management Team

In this article, we'll dig into the first — and perhaps most overlooked — root cause.

Root Cause #1: Project Success Isn't Defined

If your team can't define success, how can they achieve it?

Many project managers will say, "We're on budget, but behind schedule," or "We met the deadline, but had a safety incident."
The truth is: Success is rarely black and white — but that doesn't mean it should be left undefined.

If success is not clearly defined, communicated, and continuously measured against project goals, the likelihood of achieving it diminishes significantly.
Without explicit success criteria, teams risk misalignment in decision-making, which can ultimately compromise the project's outcome.

Field Story: Weston 4 – A Case Study in Intent

Back in 2004, I interviewed for the role of Lead Scheduler on the Weston 4 Project, a 500 MW coal-fired power plant in Wisconsin.
During the interview, the Project Manager told me:

"We want Weston 4 to be a world-class project."

When I asked what "world-class" meant, he didn't have a precise answer.

And yet, despite the lack of a formal definition, the team operated with a shared commitment to the goal of delivering a world-class project.
The outcome?

• On time
• On budget
• Safe and compliant

Nationally recognized, with awards from Power Magazine, Power Engineering, and others.

Lesson: When the team buys into a shared — even if still evolving — vision of success, great things happen.

What Defines Success in Construction Today?

Success used to mean just finishing the project.
Not anymore.

Over the decades, the success criteria have expanded:

• 1960s: PERT, CPM, and Gantt Charts to manage time and cost
• 1970s: OSHA brought safety into the equation
• 1980s-2000s: Environmental compliance, stakeholder satisfaction, regulatory approvals, and quality control

Modern success metrics now include:

• Cost
• Schedule
• Safety
• Quality
• Environmental compliance
• Regulatory approval
• Stakeholder satisfaction

Ask yourself:

• Which of these matter on your project?
• Which matter most?
• Does your whole team agree?

If your definition of success isn't clear, shared, and measurable, your project is flying blind.

Final Thought: Define It Before You Build It

Every project starts with defined objectives — a budget, a schedule, a scope.
But meeting the technical requirements isn't always the same as achieving success.

To truly succeed, your team must understand what success looks like — from Day 1.

So, before the next kickoff meeting, ask:

"What does success mean for us?"

"How will we know we've achieved it?"

Define success. Share it widely. Revisit it often.
Clarity at the start leads to aligned decisions and successful outcomes at the finish.

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Coming Up Next

In Part 2, we'll dive into the second root cause of failure:

Lack of Detail — How Missing the Small Stuff Derails Big Projects

Watch: A short video that captures the challenge project managers face daily

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P.S. — Need a Smarter Way to Plan & Execute?

We built ProjectScript to help define success, align teams, and monitor execution in real time.

Want a demo or quick chat? Let's connect.