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How Poor Coordination in Construction Can Add 10–16% to Your Project Cost and How Formm Creative Group Helps You Avoid It

May 12, 2025

Arq. Pablo G

How Poor Coordination in Construction Can Add 10–16% to Your Project Cost — and How Formm Creative Group Helps You Avoid It

In real estate development, poor communication between the design and construction teams is one of the most frequent and expensive causes of financial loss. Whether in Mérida, Mexico City, or elsewhere in the country, studies show that misaligned project teams routinely lead to rework, delays, and budget overruns that increase final costs by 10% to 16% on average.

At Formm Creative Group, we address this challenge by integrating architecture, engineering, construction, and materials sourcing under one roof. This allows us to deliver better-coordinated, faster, and more profitable projects—while minimizing the risk of design-execution misalignment.

What is Construction Miscoordination?

Construction miscoordination occurs when design and execution teams work in isolation. This often results in:

  • Conflicting or incomplete plans

  • Changes made during construction

  • Poor response times to RFIs (requests for information)

  • Unresolved design clashes (e.g., ducts intersecting beams)

  • Delays in approvals or inspections

According to a 2020 report by Dodge Data & Analytics, 48% of all rework in construction is caused by miscommunication between stakeholders—often between architects and contractors.

The Real Cost of Miscoordination

Miscoordination is not just inconvenient—it is expensive. Drawing from global industry data, here’s how much it can cost you:

Cause

% of Project Cost Attributable to Miscoordination

Source

Rework (correcting mistakes)

2.5%–5.3%

Construction Industry Institute (CII)

Change orders (unplanned work)

5%–6%

Rhumbix + Dodge Data

Schedule delays and idle labor

1.5%–2.5%

CII + Lean Construction Institute

Legal disputes and claims

0.6%–1.8%

Arcadis Global Disputes Report

Code compliance corrections

0.5%–1%

BuildingSMART, Berlin Airport Case

Total Attributable Overcost

10%–16%

Aggregated study average

For example, a $100 million MXN mixed-use development in Yucatán could see $10–16 million MXN in preventable losses—a serious dent in profitability.

Why Traditional Models Fail

The conventional design-bid-build model, where architects, engineers, and contractors are hired independently, leads to fragmented decision-making. In this model:

  • Contractors have no input during design

  • RFIs pile up during construction

  • Scope gaps turn into expensive change orders

  • Design errors are caught late, causing rework

  • Accountability is unclear when problems arise

As noted in the Structure and Infrastructure Engineering Journal, over 52% of all cost overruns in construction projects are caused by design omissions, late changes, or poor coordination between parties.

How Formm Creative Group Solves This

Our fully integrated approach eliminates the friction between design and execution. At Formm Creative Group, we manage every aspect of the project in-house, enabling faster decisions, better communication, and proactive risk mitigation.

What We Offer:

  • Integrated Design + Construction + Materials

  • Lean planning and value engineering from Day 1

  • Advanced clash detection through Building Information Modeling (BIM)

  • Early contractor involvement to ensure constructability and cost alignment

  • Centralized accountability across all project phases

This is not theoretical. Studies have shown that BIM-enabled and integrated teams consistently experience:

  • 50% fewer rework events

  • 74% fewer RFIs

  • 30% faster project delivery
    (Source: Liu, 2013; Lean Construction Institute)

We apply these efficiencies to every scale of development, from industrial design to residential construction in Mérida.

What BIM Actually Does

Building Information Modeling (BIM) is more than a 3D model. It creates a shared digital environment where all disciplines—architectural, structural, MEP, and contractors—collaborate in real time.

This lets us:

  • Identify design conflicts before construction begins

  • Simulate material usage and logistics

  • Align all trades under a single version of the truth

  • Ensure regulatory and safety compliance early in design

Benefits of a Unified Entity vs. Fragmented Teams

Traditional Approach

Formm Creative Group’s Integrated Model

Disconnected teams across different companies

Centralized team with a shared vision

Delayed decisions and miscommunications

Real-time internal communication and approvals

Dozens of RFIs and costly change orders

Early detection and prevention of errors

Budget and schedule overruns

Transparent, lean budgeting with accountability

Confusion around responsibility

Single-point accountability from design to delivery

This integrated model not only reduces waste—it adds value per square meter and ensures your capital is spent efficiently.

Conclusion: Coordination = Profit

Whether you’re planning a residential tower, an industrial warehouse, or a commercial plaza, the research is clear: poor coordination adds up to 16% in extra costs.

By choosing Formm Creative Group, you ensure:

  • Greater project certainty

  • Fewer construction surprises

  • Faster time-to-market

  • Increased ROI and investor confidence

Looking to avoid unnecessary losses and deliver your next project with precision?

Contact Us

Let’s discuss how we can help you develop better-coordinated, higher-performing real estate—from concept to construction.

Schedule a consultation here
Contact us directly here

Reference Links:

  1. Dodge Data & Analytics – Improving Performance with Project Data (2020)

    https://www.construction.com/toolkit/reports/improving-performance-with-project-data

  2. Construction Industry Institute (CII) – Quantifying Rework in Construction Projects

    https://www.construction-institute.org/resources/knowledgebase/project-phases

  3. Arcadis – Global Construction Disputes Report 2022

    https://www.arcadis.com/en/global/our-perspectives/global-construction-disputes-report-2022

  4. Structure and Infrastructure Engineering Journal – Study on cost overruns and design errors

    https://www.tandfonline.com/doi/abs/10.1080/15732479.2014.963764

  5. Lean Construction Institute – Resources on collaborative planning, Last Planner System

    https://www.leanconstruction.org/learning-lab/the-last-planner-system/

  6. BuildingSMART International – On BIM and digital design coordination

    https://www.buildingsmart.org/standards/bsi-standards/bim-implementation/

  7. Rhumbix Blog – Analysis on change orders and miscoordination costs

    https://blog.rhumbix.com/how-to-avoid-costly-construction-change-orders

  8. Liu, Yan (2013) – Research on BIM and Integrated Project Delivery efficiency

    https://www.sciencedirect.com/science/article/abs/pii/S0360835212001856

  9. El Economista (México) – Sobreprecios en obras públicas mexicanas

    https://www.eleconomista.com.mx/economia/Obras-publicas-costos-excedidos-20230206-0077.html

  10. HKA CRUX Insight Report (2022) – Dispute causation trends in global construction

    https://www.hka.com/crux-insight-2022/

  11. Autodesk Construction Cloud – Report on the cost of rework

    https://construction.autodesk.com/resources/reports/avoiding-rework-with-connected-construction/

  12. Comisión Nacional de Mejora Regulatoria (CONAMER) – BIM Strategy for Mexico

    https://conamer.gob.mx/es/CONAMER/estrategia_bim_mexico