The most frustrating experience for a project management team and the owners of a construction company is project fade.  The process of margin disappearing as the project becomes more complete deteriorates moral, the balance sheet, and may threaten the ability for an organization to continue as a viable concern.

Fade comes from many causes: optimistic estimates, poor team performance, work outside the normal scope of business, incorrect cost reporting, and even fraud.  The hardest part to understand is that fade in its purest form is not recognized in the accounting period when it actually happens, but usually months before.  If it could be identified when it occurs, action could be taken; however far too often it is identified late when little or no options are left for corrective action.

We want to hear from you!  Share your techniques to reduce and eliminate project fade.

1. What is the #1 cause of project fade in your company?
2. What processes does your company use to identify the root cause of project fade (hopefully before it is too late to correct)?
3. What does your company do to keep similar causes of project fade from happening again and again?

Share with others what does and doesn’t work for you and your company when dealing with project fade.  Let’s learn from each other to make sure you profit on all of your projects!

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