At Square Edge, we’ve seen it firsthand: the costliest problems don’t happen mid-build. They happen early—before construction even starts. According to McKinsey, 98% of megaprojects face cost overruns or delays, with poor pre-construction planning as a key driver.
Here are 7 mistakes that show up again and again—and what we do to make sure our clients avoid them.
1. Relying on Ballpark Budgets
A 2020 KPMG report found that only 31% of construction projects came within 10% of their original budget. Developers using ballpark figures up front risk major overruns later.
Most budgets break down because they start from a wishlist, not real documents. Square Edge performs a thorough Document & Cost Review—flagging missing scope, conflicting specs, and overlooked soft costs—so your financials are grounded from day one.
2. Skipping Entitlement Due Diligence
Zoning and entitlement issues are among the top reasons projects get delayed or canceled altogether, according to NAIOP (the Commercial Real Estate Development Association).
Square Edge verifies every entitlement—land use, zoning variances, legal agreements—before design gets too far. The team has seen how one overlooked covenant can sideline a project for months. This is where Square Edge protects your timeline and capital.
3. Using Unrealistic Schedules
Dodge Data & Analytics reports that only 25% of projects finish on time. Poor scheduling in pre-construction is one of the biggest causes.
Square Edge doesn’t just look at start and end dates. The team breaks down permitting timelines, utility lead times, and critical dependencies. If your project can’t make the dates on paper, we will tell you before it becomes a problem on-site.
4. Overlooking Contract Risk
Poor contract structuring is one of the top 5 causes of disputes in construction, per the Arcadis Global Construction Disputes Report.
Square Edge reviews major contracts early—not just for legalese, but for how they allocate risk, manage change orders, and define deliverables. That means fewer surprises, fewer claims, and less back-and-forth when things get moving.
5. Assuming Permits Are “In Progress”
According to the National Association of Home Builders, permit delays can add 3–6 months to timelines and cost developers tens of thousands per month in holding costs.
Square Edge checks every permit’s status—not just if it’s submitted, we stay on top of reviewer comments and coordinate with the relevant disciplines to ensure timely and accurate responses. We also review those responses to confirm they directly address the building department’s comments and follow up with the design team as needed to avoid delays. It’s meticulous work, but it helps prevent costly setbacks down the line.
6. Ignoring Infrastructure Readiness
The World Bank estimates that lack of infrastructure planning contributes to a 40% increase in capital cost overrun globally.
Before the GC even mobilizes, Square Edge looks at your site’s utility access—power, water, storm, telecom—and coordinates those timelines with your project milestones. The team has seen transformers take 6–9 months to install. You don’t want to learn that when the slab is already poured.
7. Putting One Person in Charge of Everything
Construction projects with poor communication are 5x more likely to run late, according to the Project Management Institute.
One PM can’t catch every issue across budget, design, compliance, and site. With Square Edge, you get a full team—development advisors, schedulers, compliance reviewers, cost managers. This is why clients come back: they know Square Edge doesn’t miss the details.
Pre-construction isn’t paperwork—it’s the control panel. You either get a clear view of the risks and act early, or you spend the next two years cleaning up what was missed.
At Square Edge, we help you build with foresight—not fire drills.
Let’s get it right before the ground breaks.
Ready to Avoid These Costly Mistakes?
If you’re planning a development and want clarity before committing capital, Square Edge can help. Our team partners with owners to identify risks early, align the right experts, and make sure your project is set up for success—before the first permit is pulled.
Get in touch with Square Edge, Inc. – Real Estate Project Management & Advisory to schedule a pre-construction consultation. Let’s make sure your next project starts on solid ground.
Sources:
- McKinsey Global Institute. Reinventing Construction: A Route to Higher Productivity. (2017)
- KPMG Global Construction Survey. Building a Technology Advantage. (2020)
- NAIOP Research Foundation. Challenges in the Entitlement Process. (2021)
- Dodge Data & Analytics. Construction Industry Outlook. (2020)
- Arcadis. Global Construction Disputes Report. (2022)
- National Association of Home Builders (NAHB). Regulatory Costs in Residential Construction. (2021)
- World Bank. Infrastructure for Development. (2019)
- Project Management Institute (PMI). Pulse of the Profession Report. (2020)