Rework — in construction and industrial investments, this refers to all corrections, alterations and additional work that must be performed to fix design or execution errors or unforeseen conflicts that arise during the construction phase. Rework generates additional costs, delays and the risk of disputes.
The construction of a production hall, warehouse, plant expansion or modernisation of an existing production line — these are important challenges for Polish investors. Any mistake in the implementation of an investment – even at the planning stage – can cost millions of zlotys. Industry data speaks for itself: according to the report The True Cost of Rework PlanRadar (2024), corrections and unforeseen changes consume on average up to 11% of the investment budget in the EU. McKinsey (Reinventing Construction, 2023 update) estimates that globally, losses due to errors and inefficiencies can account for as much as 30% of construction project costs.
Can the investor’s loss of time and resources be avoided? Yes, most of these losses can be avoided if the key risks are identified and precisely defined before the first shovel hits the ground.
Who diagnoses and counteracts costly investor risks? This is, of course, investment supervision exercised by leaders in engineering, construction and environmental protection knowledge and expertise.
If you do not have investor supervision and are planning an investment, you are increasing the risk.
Engage investment supervision = minimise or completely eliminate unnecessary risks, while transferring most of the responsibility to external experts.
We describe the 5 most common mistakes that SAFEGE Polska experts often observe – we also provide practical ways to eliminate risks before they arise on the construction site.
Investors must pay particular attention to the following points:
Lack of reliable pre-implementation analysis
- Problem: In their haste, investors often overlook detailed analyses of, for example, ground conditions, network collisions or the impact of construction works on the continuity of production in an operating plant. The result? Unexpected rebuilds, design changes and additional formal procedures during construction.
- Consequence: Every change during the construction phase is a real multiplier of costs and time. Installation modifications, new permits, construction site reorganisation – these are risks that can paralyse the investment for up to several weeks.
- Expert solution: Recommendation for a full pre-implementation analysis: technological audit, collision audit, soil and water conditions audit, and PFU audit. Cooperation with the investor from the stage of searching for a location and investment concept in order to minimise the risk of ‘surprises’ on the construction site.
Ignoring and overlooking ESG requirements and environmental standards
- Problem: More and more industrial facilities must meet strict environmental standards, and entrepreneurs must report their carbon footprint (CSRD, CSDDD). Failure to conduct such analyses may block approvals, certificates (e.g. BREEAM, LEED) and expose the company to administrative penalties.
- Consequence: The lack of an ESG audit or environmental impact reports poses a real risk of permits being revoked or costly upgrades during construction and penalties.
- Expert solution: Combining investor supervision with environmental expertise – advice on how to meet ESG requirements, preparation of environmental analysis, support in obtaining environmental decisions and keeping records at every stage. It is worth choosing a company that has its own extensive Environmental Consulting Department. Important information for investors: Companies that meet ESG standards can count on better financing and, in the future, even additional preferences in public tenders – this is an advantage that should not be ignored. ESG is not just a set of requirements, but also the key to providing solid support to a company at its strategic stages of development.
Conflicts with existing infrastructure or ongoing production
- Problem: The expansion of an operating plant is one of the biggest investment challenges – conflicts with installations, machine operation, constant internal vehicle traffic and production schedules. Lack of coordination of works may cause the production line to be stopped for up to several hours or days.
- Consequence: Production downtime in a large industrial plant means losses amounting to hundreds of thousands of pounds per day. Industry analyses by PMR Market Experts and the Polish Association of Construction Industry Employers indicate that the costs resulting from work collisions and technological interruptions are one of the key financial risks in industrial investments.
- Expert solution: Recommendation of phased planning, close coordination of works with the maintenance department and the presence of investor supervision from the construction works tender stage.
Underestimating the schedule and costs
- Problem: An overly optimistic schedule is one of the most common mistakes in industrial investments. External factors are overlooked: weather, administrative procedures, seasonality of supplies or price changes. The larger the investment, the more these ‘little things’ add up to millions in costs.
- Consequence: Delaying construction by a month not only costs the contractor money, but also delays the start of production, leads to lost orders and contractual penalties.
- Expert solution: audit/review of the schedule, including milestones, contingency plan and realistic time buffers. It is crucial to involve investor supervision at an early stage to monitor the progress of works and settlements with contractors.
Too late involvement of investor supervision
- Problem: Some investors decide to hire investor supervision only at the stage of construction works (even ongoing ones).
- Consequence: Lack of constant supervision means a higher risk of execution errors, failure to meet technical standards and more difficult settlements with contractors.
- Expert solution: the presence of experienced investor supervision already at the stage of preparing the design documentation. This allows the investor to avoid corrections, control the material and financial schedule, and have full transparency of costs, while the resources saved can be used to support the company’s future development.
A conscious investor avoids these pitfalls and stays ahead of the competition – saving time, money and nerves. Each of these five mistakes can be predicted – provided that reliable analysis and supervision by professionals is in place from the outset. ‘Once and for all’ is a choice, not a coincidence or luck for the investor.
Expert conclusions
- Industrial projects require an integrated approach: construction, production, environment, technology.
- Practical data shows that pre-implementation analysis and investor supervision limit losses.
Investors do not have to take risks
Construction, expansion or modernisation are decisions that require the latest engineering and environmental knowledge. Professional supervision reduces costs and protects against the consequences of mistakes – often only visible after many years.
Industrial investment without costly mistakes is not a myth – it is the result of conscious planning, technological preparation and strong, experienced supervision. This is a feature of responsible investors who think about investment from the foundations to the process, whose long-term goal is to strengthen the company and its development in modern infrastructure.
Sources of data contained in the publication:
McKinsey Global Institute: The Next Normal in Construction: How Disruption is Reshaping the World’s Largest Ecosystem (2023)
Deloitte Insights: 2024 Engineering & Construction Industry Outlook
PlanRadar: The True Cost of Rework (2024)
