JOIN THE COMMUNITY
Subscribe to our weekly newsletter for the lastest industry news and resources delivered straight to your inbox.
Let us know your interests:
Preferred language

High complexity, low execution: What 92% budget overruns actually tell us

Written By Alexis Nicols

A modern urban construction site with high-rise buildings and cranes

Most construction projects today have access to more high-tech software than ever before. Despite all these digital tools, a massive number of jobs are still finishing over budget and behind schedule. We are looking at why 92% of industry leaders are seeing their costs climb by at least 6% and how teams can finally bridge the gap between having the right tech and actually using it well.

It feels like every year, there’s a new app or piece of software promised to save the construction industry. However, the latest Revizto Bridging the Gap report shows a frustrating reality. Even with better technology, almost every leader in the AEC space is still fighting budget overruns. Specifically, 92% of those leaders report that their projects are going over budget by 6% or more. Even more surprising is that nearly half of them see costs spike by 11% to 20% by the time a project wraps up.

To put that into perspective, a 15% overrun on a $50 million project translates to an extra $7.5 million in costs that weren’t part of the original plan. If you multiply those kinds of unaccounted-for spikes across an entire portfolio, it doesn’t take long for a contractor’s profit margins to vanish entirely.

We don’t need more software; we need the software we already have to actually work together. The friction of managing fragmented systems is what really kills productivity. When one piece of software doesn’t talk to another, it creates a digital mess for the contractor to clean up. It’s nearly impossible to keep a project on budget when your data is sitting in disconnected piles. If the office and the field are not accessing the same information at the same time, mistakes happen. The only way forward is to connect these systems so they act as a single unit.

The problem: coordination

It’s easy to blame rising material costs or labor shortages when a project goes over budget. While those are real issues, the research shows that the biggest financial drain is actually poor coordination. About 41% of industry leaders say that bad communication and a lack of coordination are the top reasons for rework on a jobsite. Almost half of the money being wasted on mistakes could be saved if teams stayed on the same page.

In the real world, this communication breakdown shows up in very specific ways. One of the biggest issues is the delayed RFI (Requests for Information). When a contractor finds a problem in the field and submits a request for information, the work often has to stop until an answer comes back. If that answer takes days or weeks, the schedule falls apart, and costs skyrocket. This is a process problem where the right people aren’t talking to each other fast enough.

The average RFI takes anywhere from 6 to 10 business days to resolve. On a large project with potentially hundreds of RFIs, the delays can add up to months of lost work time, most of which is preventable. 

A massive amount of rework happens because field teams are building off the wrong drawings. When your project data is scattered across multiple apps and folders, it’s too easy for a crew to grab an old set of plans by mistake. Suddenly, you have pipes and walls going into the wrong spots, only to be ripped out and redone a week later. These are self-inflicted wounds. They happen because there isn’t one single, reliable source of truth that the office and the field can both see at the same time.

Complexity is outpacing execution

Projects are getting bigger and much harder to build technically. As a result, coordination rose to the top three concerns for industry leaders in 2026. Whether it’s a massive data center or a complex hospital, the stakes have never been higher. As these projects grow, the margin for error disappears. If one small part of the design is off, it can cause a chain reaction of problems that stalls the entire job.

We’re building more complex structures, but we aren’t getting any better at managing the chaos. Most crews are trying to handle a dozen different models and software tools at once without a real plan for how to connect them. Instead of a clear project map, you end up with a mess of data that people are struggling to understand. When your team is drowning in information, it’s only a matter of time before a design gap or a clash slips through the cracks and ruins your schedule.

Many firms find themselves in a reactive cycle. They spend most of their time putting out fires that could have been prevented with better planning. When you’re constantly reacting to problems on the jobsite, you lose the ability to look ahead. To break this cycle, contractors have to find a way to make sense of all the data before they start pouring concrete or hanging steel.

Companies breaking away from the reactive cycle aren’t necessarily using more technology; they’re using less but with more intention. Fewer platforms with better integration provide more accountability around who updates what and when.

Why tech isn’t solving the problem

Why then aren’t all of these new gadgets aren’t fixing these issues? About 32% of AEC professionals say a lack of time is the main barrier to using new technology. It takes hours to set up a new system and train a team to use it properly. On a fast-moving jobsite, that is time that many project managers feel they don’t have.

This creates a capacity gap where teams are too overwhelmed by the daily grind to pause and learn a better way to work. It’s a status quo trap. Because people are so busy fixing mistakes caused by old workflows, they never have the breathing room to implement the tools that would stop those mistakes in the first place. They stay stuck in a cycle of doing things the hard way because they are too busy to learn the easier way.

Most companies have already spent the money on high-end software. The real challenge is integration; fitting those tools into the workflows and tech stacks that the team already uses. If a new piece of software doesn’t integrate with the rest of the systems, it becomes another digital island that adds to the confusion rather than solving it.

The 2D problem

Even with the rise of 3D modeling, the industry is still holding onto the past. About 60% of firms still rely heavily on 2D drawings or on a mix in which flat plans dominate the workflow. There’s a practical reason for this. 2D drawings are still the legal language of construction contracts and building permits. However, just because they’re the standard doesn’t mean they’re the best tool for the job.

Flat drawings aren’t how the human brain wants to build. When you rely on 2D plans, you’re asking people to mentally piece together 3D objects from a group of flat lines. That’s where mistakes live. It’s way too easy to miss a pipe clashing with a beam when you are flipping between two different sheets of paper. This disconnected way of working leads directly to design errors that remain hidden until a crew attempts to install the physical hardware in the field.

The middle ground that many teams are moving towards is using 3D models as the primary working reference while keeping 2D drawings for things like regulatory compliance, certification, and contracts. 

What this means for contractors

Contractors are the ones who ultimately pay the price for bad data. When nearly half of all rework stems from poor coordination, the financial burden falls squarely on your shoulders. Rework slows down your team and eats the very profit you’re working for. With 92% of projects currently sailing past their budgets, your ability to spot these errors before they hit the field is the only thing standing between a profitable job and a massive loss.

The industry is moving toward a model where the contractor is expected to be more proactive. You’re no longer responsible for just building what’s on the plans; you’re increasingly responsible for finding risks during the design phase before they turn into expensive mistakes. To do this well, teams need a single source of truth, a system that gives everyone real-time project context so that a change made in the office is seen instantly by the team in the field.

The shift from reactive to proactive isn’t just about technology; it’s also about process. The contractors who are getting ahead of budget overruns aren’t always the ones with the latest software. They are the ones who have built clear pipelines for how information moves through their team. It’s far easier for a contractor to change a process than it is to change an entire software stack. 

Bottom line

Success in 2026 means simplifying the complexity of modern buildings. While the 92% statistic is alarming, it also presents an opportunity. The winning teams will be the ones that empower their people to find and fix risks before they hit the jobsite. Focusing on better coordination and moving away from fragmented workflows means you can finally break the cycle of budget overruns.

Want to stay ahead of the high-stakes world of mission-critical construction? Subscribe to our newsletter for the latest AEC insights and lead the way in construction innovation.

Share Your Thoughts

STAY IN THE KNOW
Your AEC update in 5 minutes every week.