Project Cost Management Statistics 2024
– Everything You Need to Know


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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 🙂

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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

One of the most important benefits of project cost management is providing transparency and visibility into the financial health of a project. By regularly monitoring costs and comparing them to the budget, project managers can quickly identify any potential issues or deviations from the original plan. This allows them to make informed decisions about where to allocate resources, which parts of the project may need additional funding, or where costs can be cut without impacting quality.

In addition to financial transparency, project cost management also helps prioritize and allocate resources efficiently. By accurately forecasting costs and maintaining a detailed budget, project managers can ensure that resources are allocated to the most critical aspects of the project. This helps to prevent overspending in non-essential areas and ensures that the project remains on track to achieve its objectives.

Another important aspect of project cost management is its role in risk management. Cost overruns are a common issue in project management, often leading to delays, poor quality, or even project failure. By continuously monitoring costs and identifying potential risks early on, project managers can take proactive steps to mitigate these risks and prevent budget overruns. This not only helps protect the project’s financial health but also the reputation and credibility of the organization.

Moreover, effective project cost management enables organizations to make more informed decisions about future projects. By analyzing cost data from previous projects, organizations can identify trends, patterns, and areas for improvement. This helps them create more accurate budgets and better manage resources in future projects, ultimately leading to more successful outcomes.

Finally, project cost management is crucial for stakeholder communication and buy-in. By maintaining an open dialogue about project costs and budgets, project managers can build trust and credibility with stakeholders. Transparent and accurate cost reporting helps stakeholders understand the financial implications of the project and the impact of their decisions on the budget. This, in turn, can lead to better collaboration, support, and engagement, ultimately increasing the project’s chances of success.

In conclusion, project cost management is a critical tool for project success. By providing transparency, resource allocation, risk management, decision-making support, and stakeholder communication, it helps organizations effectively manage their projects and achieve their desired outcomes. While it may require time, effort, and dedication, the benefits of implementing effective project cost management far outweigh the costs, making it an essential practice for any organization undertaking a project.

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

About Author & Editorial Staff

Steve Goldstein, founder of LLCBuddy, is a specialist in corporate formations, dedicated to guiding entrepreneurs and small business owners through the LLC process. LLCBuddy provides a wealth of streamlined resources such as guides, articles, and FAQs, making LLC establishment seamless. The diligent editorial staff makes sure content is accurate, up-to-date information on topics like state-specific requirements, registered agents, and compliance. Steve's enthusiasm for entrepreneurship makes LLCBuddy an essential and trustworthy resource for launching and running an LLC.

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