Driving while blindfolded
Have you driven while blindfolded? Hopefully not. But if you read the article Mismanged Real Estate Budgets, you'll see how Fortune 1000 companies appear to be mismanaging their money, by a LOT. They might as well have been blindfolded!
In fact, the worst performers overspend by 20% and under-spend by 25%, combining for a total mis-spend of 12.2B. Talk about missing your targets! And though we all know the pitfalls of going over-budget, being under-budget is equally as bad. That's earmarked money that could have been redeployed elsewhere for far better returns or reinvestment into company growth.
When I was in a role required to prepare and go through complex capital plans, my finances had to be extremely well supported with quotes, contingencies, and total costs (not just construction, but consulting, application fees, etc.). I found it stunning how many real estate professionals were oblivious to the true costs of executing well-planned and high quality projects.
Have you been blindfolded lately?
President CGC Group, a NIBE Group Company
9 年Thanks for flagging this article, and your insightful comments, adrian. Interesting perspective re lost opportunity cost of under running budgets