In real estate development, one of the most common—and costly—mistakes is thinking that problems arise only during construction. However, the reality is different.
The True Origin of Cost Overruns
Most developers, in an attempt to save money, tend to hire the cheapest team of architects and engineers. What’s not always considered is that this decision can be very costly in the long run. The result? Projects that go over budget, are delayed for months (or even years), and end up far from what was planned.
And I speak from experience: for many years I worked as a real estate developer, participating from the conceptual stage to marketing, including construction execution. I also made mistakes. But I learned something key:
The most costly problems in a project don’t start on site, but from the project itself.
Below, I share three key reasons why the most serious—and costly—mistakes often originate before construction begins:
1. Poor planning
When there’s no clear definition of what will be built and how much it will cost, changes during construction are often inevitable. And the worst part: each change can send the budget spiraling out of control.
2. Lack of coordination
Poorly coordinated construction creates technical inconsistencies between architecture, structure, and facilities. And correcting these errors during construction takes time, money, and stress.
3. Blind decisions
When reliable data on costs, times, or construction processes are unavailable, decisions are made based on assumptions. The result? Delays, improvisations, and cost overruns.
What if those mistakes could be turned into opportunities?
Fortunately, these mistakes are also an opportunity to improve the way projects are developed. Here are three approaches that have worked for many of our clients:
1. A clear vision from start
Having a clear vision of what will be built, for whom, and with what budget allows you to anticipate key decisions, minimize risks, and increase project value from the outset.
2. Precise coordination with technology
With tools like BIM (Building Information Modeling), we integrate architecture, structure, and facilities into a single platform from the design stage. This avoids conflicts on site and significantly improves efficiency.
3. Decisions based on real data
Using concrete and up-to-date information on costs, schedules, and processes allows for informed decision-making. There’s no room for improvisation, and project profitability improves substantially.
Nexity Nice by Cafeína Design
These strategies aren’t just theory: they’re the result of years of experience working with real estate developers who today build on time, on budget, and with improved results.
If you’re also facing these challenges, or want to know how to improve the planning stage of your next development, write to us and we’ll discuss it.
