Why Project Management Still Fails and What to Do

Operational excellence doesn’t happen by accident. Yet in today’s construction environment, many firms are still leaving it up to chance. That’s one of the central takeaways from FMI’s forthcoming industry study on project management and a key message from the latest episode of our Built-In podcast.

Led by FMI’s Gregg Schoppman and me, Nelson Newman, this three-part survey reveals where project management is breaking down, what separates top-performing firms, and how executives can position their teams for predictability, profitability and long-term success.

With most firms experiencing significant growth over the past decade, it’s time to evaluate if operational discipline kept pace with expansion. For many firms, the answer is no.

Only 3% of construction businesses consistently deliver projects on time and on budget. The leaders in our survey are not just lucky; they’re disciplined and ahead of the rest of the industry.

Insights from the Study

The study is structured around three themes every construction executive should be thinking about:

1. Why Project Management Still Fails
   
   It begins with planning. Many failures stem not from the chaos of execution, but from poor front-end decision-making. FMI’s findings challenge firms to evaluate how they scope work, allocate project teams and plan for stretch goals.
    
2. What High Performers Do Differently During Execution
   
   Every project faces chaos. The difference is how firms respond to it. Best-in-class performers apply systems thinking, manage leading indicators and “retire risk” early. A key insight: just because you’re 50% done with the scope doesn’t mean you’ve retired 50% of the risk.
    
3. How the Role of the Project Manager Is Evolving
   
   Today’s project managers are expected to be planners, communicators and business leaders, often running projects that exceed $10 million in value. The survey identifies a growing divide between project managers with field expertise and those with business strategy acumen, and why forward-looking firms need both.

Critical Findings That Demand Executive Attention

According to executive responses, the survey found that when project managers contribute at least 25% of the estimating effort, their projects are 42% more likely to meet or exceed profit targets compared to projects with no project manager involvement. Why? Involvement breeds ownership and that leads to better forecasting, execution and alignment.

We also found that operationally excellent firms treat change orders like mini projects. FMI’s data shows that companies with a highly consistent change order process are 23% more likely to meet or exceed schedule performance than those with a moderately consistent process.. Yet project managers still underappreciate the importance of this discipline compared to their executive teams.

There’s strong agreement that trade coordination, poor estimating and staffing issues cause profitability and schedule challenges. But gaps appear in areas like change order management, risk awareness and development priorities. Executives surveyed emphasize financial acumen; project managers ask for broader development support.

What Comes Next

Over the coming months, we’ll be releasing a three-part publication unpacking these findings in detail. If you're responsible for improving operational results at your firm, whether you're a CEO, COO or head of operations, you’ll want to be sure to read these papers.

You'll walk away with:

• Benchmarks from hundreds of firms.
• A framework to assess your own project manager capabilities.
• Strategies to build a stronger pipeline of project leaders.
• Guidance for improving planning, execution and closeout.

Final Thought: From Project Victim to Project Leader

As Schoppman puts it, the best firms don’t just run better projects, they build systems that make projects successful. That means moving from passive execution to proactive leadership and consistent playbooks. If you want to know what separates the top 3% of firms from the rest, stay tuned for the release of our full project management survey.

In the meantime, catch the full conversation with Gregg and me on the Built-In Podcast.