Professional and Career Topics

Have you ever been part of a project that went over budget or had the threat of doing so if action was not taken? 

If so, what management and communication strategies have you observed that seem to be effective in these situations? Are there professional ways to bring a project back in line or otherwise adjust client or stakeholder expectations? 

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Christopher Seigel P.E., M.ASCE
Civil Engineer
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Excellent question, Chris. That's a frequent engineer/management nightmare. I only encountered it in planning and design phases, so my with these approaches does not extend to construction and operation. 

If the problem was our fault, I told the client about it as soon as it came to my attention but we ate the cost, either through unpaid OT or charging to overhead.

If the problem was the client's fault, I asked them to pay the extra cost -- a change order. Some clients would insist we cover it and sometimes we would do it once, but never twice.

If the problem was outside anyone's control, I'd tell the client right away and discuss the options -- a reduced product at the original cost, or the original product at an increased cost.

Bill Mc

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William McAnally Ph.D., P.E., BC.CE, BC.NE, F.ASCE
ENGINEER
Columbus MS
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Original Message:
Sent: 08-04-2025 06:24 PM
From: Christopher Seigel
Subject: Your Project is Over Budget. Now What?

Have you ever been part of a project that went over budget or had the threat of doing so if action was not taken? 

If so, what management and communication strategies have you observed that seem to be effective in these situations? Are there professional ways to bring a project back in line or otherwise adjust client or stakeholder expectations? 

------------------------------
Christopher Seigel P.E., M.ASCE
Civil Engineer
------------------------------

I ran into this issue on a project early in my career. In my case we had not asked for enough fee because the man-hours on similar projects done in the past indicated that the fee we provided was correct. We later found out that project coordinators (i.e. junior engineers) were not billing time they spent on the projects because they didn't want their project to be over budget. This was a small firm, and the engineers did all of the project work. This obviously created the problem that made my project go over budget.

The lesson learned was that you bill your time spent on the project so that future projects have appropriate budgets and let the guys whose name is on the letterhead decide if the time shows up on the client's invoice. Or if you are not sure about the time you should bill to the project as someone in a leadership position. 

I agree with Bill Mc if you have one of the situations he mentioned. Be up front and communicate. 

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James Wilson P.E., M.ASCE
Plant Engineer
Charleston Water System
Charleston SC
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Original Message:
Sent: 08-06-2025 12:21 PM
From: William McAnally
Subject: Your Project is Over Budget. Now What?

Excellent question, Chris. That's a frequent engineer/management nightmare. I only encountered it in planning and design phases, so my with these approaches does not extend to construction and operation. 

If the problem was our fault, I told the client about it as soon as it came to my attention but we ate the cost, either through unpaid OT or charging to overhead.

If the problem was the client's fault, I asked them to pay the extra cost -- a change order. Some clients would insist we cover it and sometimes we would do it once, but never twice.

If the problem was outside anyone's control, I'd tell the client right away and discuss the options -- a reduced product at the original cost, or the original product at an increased cost.

Bill Mc

------------------------------
William McAnally Ph.D., P.E., BC.CE, BC.NE, F.ASCE
ENGINEER
Columbus MS

Original Message:
Sent: 08-04-2025 06:24 PM
From: Christopher Seigel
Subject: Your Project is Over Budget. Now What?

Have you ever been part of a project that went over budget or had the threat of doing so if action was not taken? 

If so, what management and communication strategies have you observed that seem to be effective in these situations? Are there professional ways to bring a project back in line or otherwise adjust client or stakeholder expectations? 

------------------------------
Christopher Seigel P.E., M.ASCE
Civil Engineer
------------------------------

When a project starts to exceed its budget, the key is to quickly identify the source of the overrun and act systematically. In practice, a combination of four steps often works best:

Early Variance Analysis – As soon as signs of overspending appear, break down expenses by category (labor, materials, subcontractors) to locate the problem.

Scope Reassessment – Work with the client to remove or postpone non-critical tasks.

Transparent Communication – Provide regular, honest updates with concrete solutions to maintain trust.

Resource Reallocation – Move the most experienced team members to high-priority tasks to save both time and money.

This approach not only helps bring the project back on budget but also shows the client that the team is acting proactively rather than reacting after the fact.

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Darya Stanskova M.ASCE
Cost Estimator, Construction Engineer, Power Engineer, Project Manager
Fort Myers FL
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Original Message:
Sent: 08-04-2025 06:24 PM
From: Christopher Seigel
Subject: Your Project is Over Budget. Now What?

Have you ever been part of a project that went over budget or had the threat of doing so if action was not taken? 

If so, what management and communication strategies have you observed that seem to be effective in these situations? Are there professional ways to bring a project back in line or otherwise adjust client or stakeholder expectations? 

------------------------------
Christopher Seigel P.E., M.ASCE
Civil Engineer
------------------------------

I can definitely say I've experienced this on my very first construction project. I was the cost engineer onsite during the Great Recession.

Our budget was blown as the price for fuel, copper and steel hit all time highs. We couldn't get a break on that job. The project had been extended by two years b/c the small county we were end didn't have appropriate staff to access and approve the air permit.

In the client meetings we were focused on other ways to cut costs. That wasn't successful to the level of the overruns we had in materials. The client reps went to their executive team with a few scenarios on how to move ahead. 

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Michele Heyward EIT, M.ASCE
Denmark SC
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Original Message:
Sent: 08-04-2025 06:24 PM
From: Christopher Seigel
Subject: Your Project is Over Budget. Now What?

Have you ever been part of a project that went over budget or had the threat of doing so if action was not taken? 

If so, what management and communication strategies have you observed that seem to be effective in these situations? Are there professional ways to bring a project back in line or otherwise adjust client or stakeholder expectations? 

------------------------------
Christopher Seigel P.E., M.ASCE
Civil Engineer
------------------------------

In this situation, you need to start discussing win-win scenarios, as everyone loses if you can't find a suitable compromise. The risk is that you may never work for the client again.

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Mitch Winkler P.E.(inactive), M.ASCE
Houston, TX
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Original Message:
Sent: 08-15-2025 05:30 PM
From: Michele Heyward
Subject: Your Project is Over Budget. Now What?

I can definitely say I've experienced this on my very first construction project. I was the cost engineer onsite during the Great Recession.

Our budget was blown as the price for fuel, copper and steel hit all time highs. We couldn't get a break on that job. The project had been extended by two years b/c the small county we were end didn't have appropriate staff to access and approve the air permit.

In the client meetings we were focused on other ways to cut costs. That wasn't successful to the level of the overruns we had in materials. The client reps went to their executive team with a few scenarios on how to move ahead. 

------------------------------
Michele Heyward EIT, M.ASCE
Denmark SC

Original Message:
Sent: 08-04-2025 06:24 PM
From: Christopher Seigel
Subject: Your Project is Over Budget. Now What?

Have you ever been part of a project that went over budget or had the threat of doing so if action was not taken? 

If so, what management and communication strategies have you observed that seem to be effective in these situations? Are there professional ways to bring a project back in line or otherwise adjust client or stakeholder expectations? 

------------------------------
Christopher Seigel P.E., M.ASCE
Civil Engineer
------------------------------