Project Cost Management Statistics


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Project Cost Management Statistics 2023: Facts about Project Cost Management outlines the context of what’s happening in the tech world.

LLCBuddy editorial team did hours of research, collected all important statistics on Project Cost Management, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

Are you planning to form an LLC? Maybe for educational purposes, business research, or personal curiosity, whatever the reason is – it’s always a good idea to gather more information about tech topics like this.

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Top Project Cost Management Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 82 Project Cost Management Statistics on this page 🙂

Project Cost Management “Latest” Statistics

  • Executive leaders say that the most common reason projects fail (37%) is a lack of clear goals.[1]
  • Only 37% of teams in the United Kingdom said that they usually finished projects on time.[1]
  • 73% of Americans believe that technology will never be able to replace the human mind.[1]
  • The national average salary for project managers was $80,854 as of March 15, 2018.[1]
  • The percentage of businesses that manage their Agile projects using a spreadsheet fell from 74% in 2015 to 67% in 2016.[1]
  • Up to 5% from 2014, 85% of businesses have a PMO (project management office).[1]
  • Open source software, according to 90% of businesses, improved innovation, interoperability, and efficiency.[1]
  • In 2017, the greatest challenge faced by manufacturing project managers was cost control (49.5%).[1]
  • The majority of manufacturers, 56.6%, employ a combination of project management approaches.[1]
  • Communication is cited as the greatest obstacle to team success by 59% of American workers, followed by accountability (29%).[1]
  • 72% of businesses report that projects have taken longer than expected.[2]
  • 46% of firms report an undertaking was delayed yet was rescheduled, however, 32% had projects deferred or dropped and have not been rescheduled.[2]
  • In their bids, 44% of businesses are including longer completion times.[2]
  • In the previous year, at least one underperforming project was mentioned by over half of the professionals in the fields of engineering and construction.[2]
  • Poor contractor performance is cited as the primary cause of project underperformance by 69% of owners.[2]
  • On at least 25% of their projects, 68% of general contractors reported experiencing difficulties “getting off the job.”[2]
  • Due to schedule slippage, 66% of general contractors are paying more for overtime and second shifts on at least three-quarters of their projects, and 50% of them have to extend the project’s end date.[2]
  • In the last three years, only 25% of projects met their original deadlines within 10%.[2]
  • In addition, in the previous three years, only 31% of all projects exceeded the budget by 10%.[2]
  • Large projects typically exceed budget by up to 80% and take 20% longer to complete than planned.[2]
  • 98% of megaprojects fail or cost more than expected.[2]
  • Around the world, 77% of megaprojects are 40 percent or more behind schedule.[2]
  • Over 30% of all projects expand beyond the scope of work in the field in 25% of cases.[2]
  • By project closeout, up to 30% of the initial data created during the design and construction phases is lost.[2]
  • 78% of engineering and construction firms think project risks are getting worse.[2]
  • Miscommunication and inadequate project data account for 52% of rework.[2]
  • When direct and indirect factors are taken together, the actual rework cost is closer to 9% of the project’s total cost.[2]
  • A culture that values project management is a high priority for only 46% of businesses.[3]
  • Project portfolio management, according to eight out of ten project managers, is becoming increasingly important to business success.[3]
  • Overtaking the 2016 rating of 45%, 52 percent of respondents are somewhat or very dissatisfied with the current level of PM maturity in their organization.[3]
  • In Australia, 48% of businesses always or frequently report variations in project benefits tracking.[3]
  • Sponsors are heavily involved in 61% of projects.[3]
  • Organizations consider 40% of their project and program governance activities to be very effective.[3]
  • Project management software is used by only 23% of businesses.[3]
  • From 2020 to 2025, the market for project management software is expected to grow at a CAGR of 10.67%.[3]
  • MS Excel is used by 35% of project managers to create resource plans.[3]
  • Organizations that undervalue project management as an essential component for driving change are responsible for 67% of projects that fail.[3]
  • Poor project performance results in a waste of 11.4% of investment on average.[3]
  • According to 66% of project professionals, the company supported their decision to purchase project management software.[3]
  • 61% of businesses offer training in project management, and 47% offer project professionals a clear career path.[3]
  • The United States employs an estimated 1,279,390 specialists in business operations and project management.[3]
  • The average annual base salary for a project manager as of January 2021 was $66,137.[3]
  • 74% of project professionals expect an increase in the number of employees working from home.[3]
  • One in six projects has a cost overrun of 200 percent, and projects typically go over budget by 27%.[4]
  • 73% of respondents believe that their projects are “doomed right from the start” or almost always.[4]
  • The U.S. economy incurs approximately $50-150 billion annually due to failed IT projects.[4]
  • Rework consumes half of the time in 80% of dev teams.[4]
  • 17 percent of IT projects fail so badly that they put the company’s very existence in jeopardy.[4]
  • Only 2.5% of businesses are able to successfully finish all of their projects.[4]
  • Projects that are in line with an organization’s strategy are more likely to be completed successfully (71% vs. 48%), but on average, 60% of projects are not in line with the strategy.[4]
  • 50 percent more of their projects fail when project management is undervalued.[4]
  • Despite statistical evidence that a mature project management process significantly increases an organization’s likelihood of delivering on time and within budget, only 46% of businesses make project management a cultural priority.[5]
  • 50% of businesses now have more than one project management office (PMO), and 89% of businesses now have at least one PMO.[5]
  • 59% of project managers manage two to five projects at once. 11% manage between 6 and 10 projects, while 15% manage more than 10.[5]
  • According to a monday.com survey, 54% of workers spend five or more hours a week on repetitive, uncreative tasks.[5]
  • 61% of businesses offer some kind of training in project management, and 47% have gone the extra mile and created a clear path for PM careers.[5]
  • Poor project management was found to be the primary cause of most organizations’ 70% project failure rate, according to a 4PM survey.[6]
  • According to PMI research, only 42% of organizations claim that their projects are well aligned with a sound organizational strategy.[6]
  • PricewaterhouseCoopers looked at 10,640 projects from 200 businesses in 30 countries and a variety of industries and found that only 2.5% of these businesses were successful in completing 100% of their projects.[6]
  • It was discovered that large projects with budgets exceeding $1 million US dollars had a failure rate nearly 50 percent higher than projects with budgets below $350,000.[6]
  • 75% of respondents, including 27% who always feel this way, admit that their projects are either always or usually “doomed right from the start.”[6]
  • According to a survey, project management software typically costs $10,329 per year or $861 per month.[6]
  • Standard project management tools like agile and waterfall are used by only 21% of businesses.[7]
  • One in six IT projects incurs a 200 percent cost overrun.[7]
  • Businesses are 50% more likely to fail IT projects with budgets of at least $1 million.[7]
  • 41% of businesses with a high rate of project failure attribute their failure to inadequate project management from upper management.[7]
  • According to 41% of organizations that report poor project performance, project sponsors and management do not provide sufficient support.[7]
  • For every $1 billion invested in a project, problems with project management cost businesses $109 million.[7]
  • Compared to 47% of businesses without a project management tool, projects were completed within budget by 6% of companies using project management software.[7]
  • Compared to businesses that do not implement project management, those that do save 28 times more money.[7]
  • According to 47% of businesses that use project management software, it has improved the accuracy of project cost estimates.[7]
  • Only 41% of businesses that did not use project management tools completed projects on time, compared to 61% of those that did.[7]
  • At least half of project managers manually create KPI reports for their projects every business day.[7]
  • Nearly 46% of team leaders identify project deadlines as their greatest challenge.[7]
  • Due to disastrous outcomes and failures, approximately 9.9% of every dollar is wasted.[8]
  • Nearly 32 percent of a company’s budget is wasted each year.[8]
  • Due to the company’s shift in preference, 39% of projects fail.[8]
  • According to a PMI study, companies with a clear pattern of project management saw a 38 percent increase in creative projects.[8]
  • Sixty-six percent of businesses that employ project management software complete their projects with an initial budget and without incurring additional costs.[8]
  • 28 times more money is saved by the company that uses project management techniques. compared to companies that do not employ those methods.[8]
  • With a minimum budget of one million dollars, fifty percent of IT projects fail to meet their objectives.[8]
  • Project management disputes cost at least 109 million dollars for every $1 billion investment.[8]

Also Read

How Useful is Project Cost Management

First and foremost, project cost management provides organizations with a structured approach to estimating and budgeting for their projects. By taking the time to carefully plan and allocate resources, project managers can accurately estimate the costs associated with each aspect of their project. This allows organizations to plan for potential cost overruns and make informed decisions about budgeting and funding throughout the project lifecycle. Without proper cost management, projects can quickly spiral out of control, leading to delays and budget overruns that can threaten the success of the project.

Cost management also helps organizations identify potential risks and issues that may impact the cost of a project. By closely monitoring costs and comparing them to the budget, project managers can quickly identify any discrepancies and take corrective action to mitigate these risks. This proactive approach can help organizations avoid costly delays and rework that can result from poor cost management practices. By addressing potential issues early on, project managers can keep projects on track and within budget, ensuring that they are completed successfully and on time.

Furthermore, project cost management provides organizations with valuable insights into the financial health of their projects. By tracking costs and comparing them to the budget, organizations can quickly assess the progress of their projects and identify any areas that may be behind schedule or over budget. This real-time information allows project managers to make data-driven decisions about resource allocation, scope changes, and project priorities, ensuring that projects stay on track and meet their objectives. Without cost management, organizations are left in the dark about the financial status of their projects, making it difficult to identify and address potential problems before they escalate.

In addition to its practical benefits, project cost management also plays a crucial role in stakeholder management. By providing stakeholders with accurate and transparent information about project costs and budgets, organizations can build trust and credibility with their stakeholders. This open communication fosters collaboration, engagement, and buy-in from stakeholders, ultimately leading to greater support for the project and a higher likelihood of success. By demonstrating a commitment to responsible cost management practices, organizations can instill confidence in their stakeholders and ensure that projects are completed successfully.

In conclusion, project cost management is a critical aspect of project management that cannot be overlooked. By providing organizations with a structured approach to estimating, budgeting, funding, managing, and controlling costs, cost management helps ensure that projects are completed within budget and on time. In addition to its practical benefits, cost management also provides organizations with valuable insights into project risks, financial health, and stakeholder relationships. Ultimately, effective cost management is key to the success of any project and should be a priority for organizations of all sizes and industries.

Reference

  1. capterra – https://blog.capterra.com/10-need-to-know-project-management-statistics-for-2018/
  2. autodesk – https://constructionblog.autodesk.com/construction-industry-statistics/
  3. financesonline – https://financesonline.com/35-essential-project-management-statistics-analysis-of-trends-data-and-market-share/
  4. lunarlab – https://lunarlab.io/scary-project-management-statistics/
  5. monday – https://monday.com/blog/project-management/project-management-statistics/
  6. planyard – https://planyard.com/blog/9-staggering-project-management-statistics
  7. saaslist – https://saaslist.com/blog/project-management-statistics/
  8. notifyvisitors – https://www.notifyvisitors.com/pb/blog/project-management-statistics

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