Introduction
Large construction projects often fail due to a chain of hasty decisions, unrealistic projections, and unclear processes. Mexican companies are no exception; from infrastructure projects to private corporate expansions, costly mistakes tend to repeat. The alarming part is that many of these could have been anticipated during the planning phase.
Common Mistakes and How to Avoid Them
1. Underestimating Environmental Complexity
One of the most common mistakes is underestimating the complexity of the environment. Assuming that key factors will remain stable and processes will follow as planned often leads to unrealistic projections. However, reality usually presents changing conditions such as suppliers altering delivery times, unavailable equipment when needed, and unexpected operational variables. Failing to consider these scenarios results in unrealistic projections that eventually translate into overcosts and unjustifiable time extensions.
2. Over-reliance on Approved Budgets
Another frequent error is assuming that the approved budget will suffice until the end and that additional resources can always be requested if needed. A Project Manager must operate with the understanding that costs can fluctuate at any moment, and relying on extra funds is a risky bet.
Instead, constantly seek cost-saving opportunities and include a contingency budget from the start to absorb unexpected price increases in materials, services, or labor.
3. Ignoring Local Context
Overconfidence can backfire, as seen when companies replicate successful models in various states or even other countries, assuming the same performance in Mexico. Factors like labor culture, local infrastructure, and specialized talent availability change the game. Those who don’t listen to local teams or adapt strategies to the specific context open the door to preventable errors.
4. Ineffective Communication
Lack of effective communication among involved parties can increase risks. Decisions made in isolation and without visibility lead teams to advance in opposite directions, causing redo’s, confusion, time loss, and ultimately, money loss. Coordination means aligning priorities, ensuring critical information flows in real-time, and providing responsible parties with necessary tools to anticipate deviations before they become significant problems.
The Role of Experience and Expertise
Large projects can transform companies and cities, but they can also become failure examples if not executed with order, vision, and discipline. Mexican experience shows that costly mistakes are often not technical or financial but rather focus, communication, and prevention failures. However, avoiding them isn’t impossible; it requires listening, rigorous planning, anticipating adverse scenarios, and the humility to adjust the course when conditions change.
Successfully transitioning a project from paper to reality without collapsing along the way isn’t luck; it’s the result of understanding that excellence is not improvised.
About the Author
The author is the CEO of Projects and Developments at JLL Mexico.
He is a Civil Engineer from the National Autonomous University of Mexico (UNAM) and holds the LEED AP Building Design + Construction certification. With over 30 years of experience, Gutiérrez Ochoa is a construction and project management professional. As the director of JLL Mexico’s Projects and Developments area, he leads a team of more than 300 Project Managers.
Key Questions and Answers
- Q: What are common mistakes in large real estate projects? A: Common mistakes include underestimating environmental complexity, over-reliance on approved budgets, ignoring local context, and ineffective communication.
- Q: How can project managers avoid these mistakes? A: Project managers should constantly seek cost-saving opportunities, include contingency budgets, adapt to local contexts, and ensure effective communication among teams.
- Q: Why is understanding the local context crucial? A: Failing to understand and adapt to local contexts—such as labor culture, infrastructure, and specialized talent availability—can lead to preventable errors.
- Q: What role does communication play in project success? A: Effective communication ensures teams are aligned, critical information flows in real-time, and responsible parties can anticipate deviations before they become significant problems.
