Construction Projects Rarely Fail Because of Construction

Construction projects rarely fail because people do not know how to build.

Over more than twenty years working across major capital programmes, redevelopment projects and, more recently, Modern Methods of Construction (MMC), I have become convinced that the greatest risks usually lie elsewhere. They lie in governance, commercial discipline, decision-making and, above all, in the ability of multiple organisations and professional teams to work towards a common objective.

My perspective is perhaps an unusual one because I entered construction not as an engineer, architect or project manager, but as an Accountant. I assumed my role would only revolve around finance, funding and commercial oversight. Instead, I discovered that those disciplines often determine whether even the best-designed projects ultimately succeeded.

One of the experiences that most strongly shaped this view was the £155 million redevelopment of St Paul’s School in London. The project involved securing £50 million in funding, embedding financial discipline in the operations of the school to secure another £50mil in donations, overseeing a £111 million master plan of construction works delivered under budget, and coordinating trustees, architects, engineers, contractors, and professional advisers over several years. The engineering and design was exceptional, but so too was the discipline required to keep every part of the programme aligned. The project succeeded because finance, governance, design and delivery operated together rather than as separate functions.

The same lesson emerged during the redevelopment and expansion of The Grammar School at Leeds. Although very different in scale and context, the project reinforced my belief that construction is ultimately a collaborative endeavour. Technical excellence is essential, but it cannot compensate for unclear accountability, fragmented decision-making or commercial disciplines that fail to keep pace with the complexity of delivery. The alignment of all these disciplines, into an embedded thread throughout the project team, delivers a successful outcome.

Those experiences have shaped the way I now view the industry’s future.

Lessons Learned

Much of the conversation surrounding Modern Methods of Construction understandably focuses on manufacturing capability, technology and innovation. Those developments are fundamental to the industry's future, but I believe they sometimes distract from the more significant challenge.

In my experience, manufacturers rarely fail because they cannot manufacture, and contractors rarely fail because they cannot build. Difficulties arise when organisations with different responsibilities, experiences, commercial drivers and operating models struggle to function as a single delivery system – combining offsite manufacturing with onsite construction.

Working within both a modular construction manufacturer and a traditional construction platform has only reinforced that belief. In each case, I found highly capable people with deep technical expertise and a genuine commitment to improving project outcomes. The opportunity did not lie in changing the technical solution; it lay in strengthening the operating environment around it by improving governance, clarifying responsibilities, strengthening commercial reporting and creating better visibility of programme risks before they affected delivery.

Perhaps because my background is in finance rather than engineering, I have always viewed projects as businesses as much as construction programmes. Cash flow, contractual arrangements, programme governance and risk management are not activities that sit alongside delivery; they are fundamental to delivery itself. Decisions made during scope, appointments, procurement, design development and commercial negotiation often determine whether a project succeeds long before anyone arrives on site.

Joining the Dots

One lesson has remained remarkably consistent throughout my career. The most expensive construction problems rarely begin with a dramatic event; they develop gradually as relatively small issues are allowed to accumulate. My strength lies in implementing processes that help an organisation identify weaknesses at an embryonic stage.

A design decision remains unresolved because sometimes everyone assumes somebody else is dealing with it. A commercial assumption changes without the wider implications being understood. Manufacturing progresses before key interfaces have been agreed, or programme milestones quietly drift because different teams are working to different priorities. None of these issues appear particularly significant in isolation, yet together they create delays, rework, contractual tension, and unnecessary costs.

That is why so much of my work has focused on strengthening the way organisations operate rather than changing the technical solution itself. Creating clearer governance, improving the quality of reporting, defining responsibilities more precisely and encouraging earlier conversations about emerging risks may not appear transformational, but these are often the interventions that have the greatest impact. They allow experienced professionals to make better decisions sooner, resolve issues before they escalate and maintain confidence across clients, partners and delivery teams.

Over the years, I have become increasingly convinced that successful construction projects are, in reality, successful leadership exercises. They depend upon capable people working within an environment where objectives are clear, accountability is understood, and commercial and operational decisions reinforce rather than undermine one another.

The Value of Experience

Reflecting on these assignments has also reinforced why the interim model is so effective in complex delivery environments.

Organisations rarely need somebody to explain that challenges exist; they are usually acutely aware of them. More often, they need additional leadership capacity at precisely the point where complexity begins to outgrow existing structures. An experienced interim practitioner arrives without organisational history or internal agendas, builds credibility quickly across stakeholder groups, and brings the perspective gained from solving similar challenges in other organisations.

That philosophy lies at the heart of the MDIS approach. Our Associates are not career consultants observing from the outside. They are experienced operators who become part of the leadership team, helping organisations strengthen governance, improve decision-making, and create the conditions for existing teams to perform at their best. Success is measured not by the production of reports, but by leaving behind stronger organisations with greater confidence in their ability to deliver.

Looking Ahead

Construction is entering one of the most significant periods of change in its history. Modern methods of construction, automation and artificial intelligence will undoubtedly reshape the way projects are designed, manufactured and delivered, bringing opportunities to improve productivity, quality and sustainability.

What I do not believe will change is the importance of leadership.

The organisations that consistently deliver successful projects will continue to be those that make informed decisions early, manage commercial and operational risk intelligently, communicate openly across organisational boundaries and create environments in which talented people can perform at their best.

Looking back over more than twenty years, I no longer see construction simply as a technical discipline, important though technical excellence undoubtedly is. I see it as the successful integration of people, governance, commercial judgement and delivery. In my experience, projects rarely fail because people do not know how to build; they fail when organisations stop functioning as one team. Equally, when those organisations are aligned, well-led and disciplined in their operations, they become capable of delivering outcomes that no individual discipline could achieve alone.

About the Author

Hayley Richardson is a board-level Portfolio CFO and Finance Director with more than three decades’ experience leading financial strategy, projects, people and portfolios across the independent schools sector. She works with organisations to strengthen financial management, support confident decision-making and deliver sustainable growth.