Importance of Effective Communication for Construction Project Success

I am sure there is no doubt in anyone’s mind that communication is one of the most important factors affecting construction project success.

Here are some interesting numbers highlighting the importance of effective communication in projects.

According to a survey conducted recently by the Project Management Institute (PMI) — The primary cause of failure was identified as “inadequate/poor communication” by 30% of the 3,234 project management professionals surveyed (6% of these professionals came from the Construction industry).

Another survey conducted by Project Management Institute in 2013 concluded that a staggering $135 million were at risk on every $1 billion spent on projects.

And a more startling finding was that 56% of this $135 million (i.e. $75 million on every $1 billion spent) is at risk due to ineffective communication.

If we do the math, a whopping $75 billion are at risk every year out of the $1 trillion spent on construction due to ineffective communication in the United States alone. Multiply that by 6 and you can understand the implications for the global market.

$75 billion are at risk every year out of the $1 trillion spent on construction due to ineffective communication in the United States

There are other studies out there that underscore the importance of communication for success.

For instance, the 2010 Forbes Strategic Initiatives Study found that:

The vast majority of CEOs (92%), communicators (92%) and strategists (88%) say communications is critical to the success of their strategic initiatives

The 1998 Bull Survey concluded that the biggest cause of project failure during the lifecycle of the project was a breakdown in communications. With 57% of survey participants stating bad communication among the relevant parties as the key reason for project failure.

Breakdown in communication is the biggest reason of project failures

I am sure for most of you, who have been part of construction projects, it is not hard to tell that every construction professional spends most of his/her time communicating. They may be:

• Sending emails
• Talking over a phone
• In a meeting
• Posting information on a project management and collaboration app

A 2015 Huffington Post survey revealed that U.S. workers devoted 3.2 hours/day on work related emails. And I am sure this number must be little higher for most construction professionals.

U.S. workers devote 3.2 hours/day on work related emails

A 2008 study found that the construction project managers spent 76% of their time communicating information verbally (either face-to-face or on the telephone) and 21% of their time was spent on paperwork. Only 4% of the time was spent working on computers (There is an overlap in activities so the numbers do not tally to 100%).

I believe, with the rapid adoption of technology in the last decade, the time spent on computers and mobile devices must have increased significantly.

Construction project managers spend 21% of their time on paperwork

The same study also pointed out that the 10 senior and successful construction project managers, who were observed in the study, tended to favor partial information sharing in real time over complete information at a later time.

Construction Project Managers favored partial information sharing in real time over complete information sharing at a later time.

High touch, face to face communication is one of the best forms of communication for construction project managers.

The on-site construction project managers spend about half of their time in gathering and sharing information.

Establishing right communication systems and using technology can significantly improve team communication on construction projects. A 2015 Gartner study revealed that Project management software has the greatest positive impact on team communication.

Project management software has the greatest positive impact on team communication.

However, project participants will need to improve communication (both interpersonal and organizational) in order to harness the full power of technology.

A web based, mobile first software solution can definitely move the needle and improve your team communication. At Builderbox.io we build construction project management solutions to improve team communication and encourage collaboration.