INEIGHT SCHEDULE
FOR PROFITABLE CONSTRUCTION, RETHINK SCHEDULING
THE STATE OF CONSTRUCTION SCHEDULING
Industry-wide, capital construction projects struggle to turn a meaningful profit. Years of planning, collaboration, and expertise net anywhere from 3-5% — if all goes according to plan.
It’s not a profit margin that compares favorably with other industries. Manufacturers expect at least 15% return on their efforts. Utilities consistently net at least 10%. The construction industry deserves a similar outcome. Yet, between change orders, labor shortages, limited materials, and unforeseen risks, margin erosion bleeds dollars against the initial bid, making profit harder and harder to achieve.
PROJECT PROFIT STRUGGLES
Manufacturers expect at least 15% return on their efforts
If all goes according to plan Capital construction projects net 3-5% profit
Utilities consistently net at least a 10% profit
ESTIMATING IN A CHANGING WORLD
That’s because the plan reacts to new events if and when they occur, rather than representing your diligent preparation for the inevitability of change.
Far too often, schedules become a formality—a contractual requirement supervisors feel free to ignore the second the ink’s dry. As traditionally created, schedules are best-case scenarios that struggle to account for the real-world circumstances that shape the final outcome. How can construction professionals expect to turn a profit if failure’s baked into the schedule from day one?
As traditionally practiced, the critical path method of project management works laterally. From day one to day one thousand and one, schedulers account for the earliest and latest scenarios, find the float, and move forward. The schedule starts with nothing but math and optimism.
BUT THAT MATH DOESN’T ADAPT. OPTIMISM DOESN’T KNOW WHAT IT DOESN’T KNOW. IF A NEW VARIABLE UPSETS THE FORMULA, THE WHOLE THING COMES TO A STANDSTILL.
Field teams do what’s natural in that situation by disregarding the schedule the second it’s inconvenient—after all, it doesn’t have their experience. The schedule never accounted for the acts of God, Congress, and subcontractors that created this mess—and how could it? Schedules are a train barreling down a fixed track.
But—what if those constraints were easier to anticipate? What if, instead of slamming the brakes every time something fell on the tracks, the conductor had a plan for clearing the tracks in real time? What if, before the train ever left the station, it was equipped with the tools and insights it needed to navigate those obstacles without losing progress?
When schedulers invite owners, engineers, and field experts into the fold to create a constraint-free execution model, the scheduling environment shifts. Suddenly, the schedule is no longer a set of expectations the execution teams fail to meet, and instead becomes a strategic asset, shaping workflows and championing communication between owners, contractors, and teams in the field. It transforms from an anchor pulling the project under and into an engine driving it ahead.
THAT’S TRANSFORMATIONAL SCHEDULING, AND IT USHERS IN A BETTER WAY TO BUILD.
WHAT IS TRANSFORMATIONAL SCHEDULING?
Transformational scheduling takes a leap forward from the constraints of traditional scheduling practices and tools. It integrates multiple perspectives and experiences with historical project data to create an accessible, living, iterative plan that adjusts to risk throughout the project lifecycle.
TRANSFORMATIONAL SCHEDULING DELIVERS:
• More accurate plans • Validation and buy-in from stakeholders • Support for alternative delivery and contracting methods • Embedded risk management throughout the project • Greater business confidence