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Thursday, May 12, 2016

Reasons for Unnecessary Cost that lead to Poor Value

Lack of information - Insufficient of data availability about new materials, products, or processes

Lack of ideas - Failure to development new ideas or solutions for the problems

Honest wrong beliefs - Unnecessary costs are often caused by decisions based on what is the decision makers believe to be trueand not on real facts

Temporary circumstances - An urgent schedules may force decision makers to reach a quick conclusion and may lead to a to unsatisfactory delivery

Changes in owner requirements - Frequently, the owner’s new requirements force changes during design or construction that increase costs and revise the schedule


Lack of communication and coordination - Lack of communication and coordination are the leading cause of unnecessary costs

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