Cost Reduction Techniques

Glen Palmer, PSP, CFCC, FAACE and I are honored by AACE publishing another of our Top Ten series of papers in the Cost Engineering Journal. Resource management sits at the heart of project success—and, too often, at the root of costly construction claims. Why Focus on Resources? Most construction schedules are built on assumptions about production rates, durations, and quantities. But when resource planning falls short—whether due to unrealistic manpower peaks, lack of skilled labor, or poor coordination—projects risk delays, cost overruns, and disputes. Rather than waiting for claims to arise, Palmer and Carson argue for a proactive approach: plan, validate, and monitor your resources from day one. Key Takeaways from the Top Ten Approaches: 1. Validate Resources by Discipline: Go beyond surface-level schedule checks. Detailed resource validation—using field-experienced personnel—can identify unrealistic resource peaks and prevent unachievable schedules. 2. Formalize Punch and Warranty List Management: Avoid never-ending completion and warranty periods by developing comprehensive, early punch lists and using structured warranty management systems. 3. Check Resource Earning Curves: Ensure planned progress is actually achievable by comparing planned manpower curves and production rates to real-world constraints. 4. Manage Schedule Compression: When compressing schedules, understand the risks and costs of acceleration and recovery. Use structured analysis and documentation to avoid disputes. 5. Review General Conditions Labor: Monitor and budget field overhead costs carefully, and avoid relying on variable, hard-to-track level-of-effort activities. 6. Use Constructability Reviews: Always have experienced field experts review “fast-tracked” project schedules to spot resource and constructability problems early. 7. Address Trade Stacking and Overcrowding: Analyze crew concurrency and area usage to prevent inefficiencies from too many workers or trades in the same space. 8. Specify Resource Requirements in Schedules: Include resource histograms and percent curves in scheduling specifications to enable thorough schedule reviews. 9. Plan for Resource Availability: Evaluate the availability of skilled labor and specialty resources, especially on large or geographically constrained projects. 10. Minimize Inefficiencies from Disrupted Trade Work: Align procurement, sequencing, and trade starts to reduce disruption, and use targeted planning to ensure work is completed efficiently on the first attempt. Conclusion: Resource-related claims are often avoidable with disciplined planning, honest schedule validation, and ongoing monitoring. By following these ten approaches, project teams can dramatically reduce the risk of disputes, keep projects on track, and protect both profit and reputation.

I’ve optimized infra for 50+ companies. Here’s the 𝐎𝐍𝐄 𝐦𝐢𝐬𝐭𝐚𝐤𝐞 they all made. ☠️ Everyone thinks cloud scaling is about adding more servers, more clusters, and more resources. It’s not! The #1 mistake killing your cloud efficiency? ☠️ Scaling infra before fixing inefficiencies. 𝐇𝐞𝐫𝐞’𝐬 𝐰𝐡𝐚𝐭 𝐈 𝐬𝐞𝐞 90% 𝐨𝐟 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐝𝐨𝐢𝐧𝐠:  🚩 Cloud costs start creeping up. 🚩 Performance issues appear. 🚩 The team’s knee-jerk reaction? “Scale up.” Throwing more compute at an inefficient system is like upgrading from a sedan to a sports car… with the handbrake still on. 🤡 𝐇𝐞𝐫𝐞’𝐬 𝐰𝐡𝐚𝐭 𝐡𝐚𝐩𝐩𝐞𝐧𝐬 𝐰𝐡𝐞𝐧 𝐲𝐨𝐮 𝐬𝐜𝐚𝐥𝐞 𝐛𝐞𝐟𝐨𝐫𝐞 𝐨𝐩𝐭𝐢𝐦𝐢𝐳𝐢𝐧𝐠: → 𝐘𝐨𝐮 𝐦𝐮𝐥𝐭𝐢𝐩𝐥𝐲 𝐢𝐧𝐞𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐢𝐞𝐬. ↳ That one bloated query? ☠️ 𝐍𝐨𝐰 𝐢𝐭’𝐬 𝐛𝐮𝐫𝐧𝐢𝐧𝐠 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 10𝐱 𝐦𝐨𝐫𝐞 𝐫𝐞𝐬𝐨𝐮𝐫𝐜𝐞𝐬. Your infra bill looks like a startup’s growth chart, but it’s just wasted spend. Performance issues don’t go away. Because you never solved the actual bottlenecks. 🤡 I once worked with a company that was spending $1M+/month on cloud. They thought they needed more servers. Instead, we optimized their workload scheduling, fixed bad autoscaling policies, and killed zombie workloads. Outcome? Cloud costs dropped by 40%. Without adding a single new instance. 𝐁𝐞𝐟𝐨𝐫𝐞 𝐲𝐨𝐮 𝐬𝐜𝐚𝐥𝐞, 𝐚𝐬𝐤 𝐲𝐨𝐮𝐫𝐬𝐞𝐥𝐟:  ✅ Are my workloads right-sized? ✅ Is my autoscaling logic actually working? ✅ Where am I over-provisioning? ✅ Are my queries, caches, and jobs optimized? 𝐒𝐜𝐚𝐥𝐢𝐧𝐠 𝐬𝐡𝐨𝐮𝐥𝐝 𝐛𝐞 𝐭𝐡𝐞 𝐥𝐚𝐬𝐭 𝐬𝐭𝐞𝐩, 𝐧𝐨𝐭 𝐭𝐡𝐞 𝐟𝐢𝐫𝐬𝐭. 𝐌𝐨𝐬𝐭 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐝𝐨𝐧’𝐭 𝐧𝐞𝐞𝐝 𝐦𝐨𝐫𝐞 𝐢𝐧𝐟𝐫𝐚. 𝐓𝐡𝐞𝐲 𝐧𝐞𝐞𝐝 𝐛𝐞𝐭𝐭𝐞𝐫 𝐢𝐧𝐟𝐫𝐚. How are you optimizing before scaling? DevOps | Cloud Cost Optimization | AWS

Interested in a career in #AIgovernance but don’t know where to start?   You’re not alone. Three people reached out last week looking for advice (and lots more have over time).   In my opinion, it starts with building a demonstrable foundation of knowledge.   And the good news is that high-quality, low-cost training is readily available.   Here’s a list of the best courses under $100 from leading companies and schools to get you started.👇   (Tomorrow I’ll share a list of non-profit organizations that you can volunteer with to start putting your AI knowledge into action.)   Google 🔗 Introduction to Responsible AI: https://lnkd.in/ebDADGKK (1 hr) 🔗 Responsible AI – Applying AI Principles: https://lnkd.in/ex-wmeqX (1 hr) 🔗 Responsible AI for Developers: https://lnkd.in/eMucsQRu (11 hrs) Microsoft 🔗 Ethical & Regulatory Implications of GenAI: https://lnkd.in/e8NuxKF8 (3 hrs)   IBM 🔗 Impact, Ethics & Issues with GenAI: https://lnkd.in/eHegg55E (3 hrs)   University of Helsinki 🔗 Ethics of AI: https://lnkd.in/ejvu4bdv (2 hrs) Michigan 🔗 GenAI: Governance, Policy & Emerging Regulation: https://lnkd.in/eZnx7zPH (2 hrs)   Penn 🔗 AI Strategy & Governance: https://lnkd.in/eyp_PtxU (9 hrs)   Northeastern 🔗 Ethics & Governance in the Age of GenAI: https://lnkd.in/eN7D8eBY (23 hrs)   LinkedIn Learning 🔗 Foundations of Responsible AI: https://lnkd.in/eXcFpa_w (2.5 hrs) 🔗 Building a Responsible AI Program: https://lnkd.in/eEN_MhiH (1.5 hrs) 🔗 Understanding & Implementing the NIST AI Risk Management Framework: https://lnkd.in/eEZUu6Xp (1.5 hrs) 🔗 Navigating the EU AI Act: https://lnkd.in/eu7YSQKd (1.5 hrs) 🔗 The State of AI & Copyright: https://lnkd.in/epNyhAHJ (1 hr) 🔗 Introduction to Auditing AI Systems: https://lnkd.in/ePX8XCVP (1.5 hrs) 🔗 Algorithmic Auditing & Continuous Monitoring: https://lnkd.in/eCwaYuyk (1 hr)   🔗 Managing AI Security Risks with ISO 27001: https://lnkd.in/ezkBdiYd (1.5 hrs)

How the Best Construction Managers Handle Time and Cost Overruns ⏳💰 No matter how well a project is planned, time and cost overruns can still happen. Materials get delayed, labor costs rise, and unexpected site conditions throw off schedules. The difference between a project that stays on track and one that spirals out of control? Proactive management. The first step to avoiding overruns is early risk identification. Reviewing project scope regularly and using historical data to predict potential delays or budget creep can prevent surprises down the road. Effective budget management is another key factor—closely monitoring expenses and setting aside contingency funds helps absorb unexpected costs without derailing the entire project. Smart scheduling and resource allocation also play a huge role. Realistic timelines, built-in flexibility, and tools like critical path analysis help construction teams prevent bottlenecks. Properly optimizing labor and materials minimizes waste and keeps the project running efficiently. Investing in supply chain management software can also help prevent procurement delays. Change orders are another major cause of overruns. A well-structured change order control process ensures that every modification is properly assessed before approval. Keeping all stakeholders informed about changes in cost or time reduces miscommunication and keeps expectations aligned. Finally, performance monitoring is what keeps projects under control. Regularly tracking key performance indicators (KPIs) and conducting post-project evaluations help teams improve future planning. Weekly review meetings are essential to catch small issues before they become costly problems. Construction overruns don’t have to be the norm. With early risk detection, tight budget control, and proactive planning, managers can minimize delays, control costs, and deliver successful projects. What’s the biggest time or cost overrun challenge you’ve faced, and how did you manage it? Let’s discuss in the comments! 👇💬 #ConstructionManagement #ProjectManagement #CivilEngineering #Infrastructure #ConstructionTechnology #EngineeringExcellence #LeanConstruction #DigitalTransformation #CostEstimation #AutomationInConstruction #BIM #ConstructionInnovation #RiskManagement #ConstructionProjects #SustainableConstruction #SchedulingAndPlanning #ConstructionLeadership #SmartConstruction #SupplyChainManagement #ContractManagement #Toronto

"7 Smart Budgeting Strategies to Avoid Cost Overruns in Construction" Cost overruns can break even the best construction projects — not just financially, but emotionally. Imagine being 90% done, yet 150% over budget. Painful, right? Here’s how to stay in control: 1. Start with accurate estimates – Never rely on guesses. Use data, not hope. 2. Plan for contingencies – Add at least 10–15% buffer. Surprises will happen. 3. Track expenses in real time – Daily monitoring > monthly panic. 4. Control scope creep – Every small change adds up fast. 5. Use project management software – Automate where possible, reduce human error. 6. Vet your vendors wisely – Cheap now can be costly later. 7. Review weekly – Spot red flags before they turn into disasters. Your budget tells your project's story. Make sure it’s a success story.

Most founders make this expensive mistake: They hire first, automate later. That’s how you burn cash, slow down growth, and create inefficiencies. This is the OLD way of scaling: ❌ Hiring a VA before setting up AI workflows ❌ Building a sales team before automating lead gen ❌ Spending on support before deploying AI chatbots The truth is that most tasks founders hire for repeatable and predictable tasks. That means AI + automation should handle them first. Before hiring, ask yourself: ✅ Can AI do this? (content creation, email sequences, data entry) ✅ Can automation handle it? (lead capture, scheduling, follow-ups) ✅ Can I templatize this? (SOPs, decision trees, no-code workflows) A few examples of scaling this way: → Instead of hiring a social media manager → Use AI to create, schedule, and repurpose content automatically. → Instead of hiring an SDR → Automate lead gen, personalize outreach, and book calls on autopilot. → Instead of hiring customer support → Deploy AI chatbots + a knowledge base to handle 80% of tickets. Once automation is maxed out, then and only then should you hire. The new way of scaling is simple: 1️⃣ Automate everything repeatable (AI & workflows) 2️⃣ Outsource complex but process-driven work (freelancers, contractors) 3️⃣ Hire for creativity, strategy, and decision-making (core team) So before every hire, ask the right questions: → Does this role drive revenue or efficiency? → Can we automate this instead? → Will this person reduce workload or just add to it? Because profitability isn’t about more people, It’s about fewer inefficiencies. PS: I just put together a guide on how to “hire” your first AI assistant. Comment “AI” and I’ll send it over!

Why 8 out of 10 infra CFOs miss early warning signs of cost overruns - and what the BEST ONES are doing differently. I’m not talking about bad teams. I’m talking about great teams - trapped in bad systems. Here’s the pattern I keep seeing: Symptom 1: You’re always surprised → By the time cost overruns show up in your P&L, it’s too late. → What you needed were early signals - before the damage. Symptom 2: You’re working with stale data → Forecasts are built in spreadsheets. → The project changed three times since then. → But the numbers didn’t. Symptom 3: There are no alerts → No one told you the subcontractor missed two milestones. → Or that material costs spiked last week. → That silence is expensive. Here’s what TOP 1% performing CFOs are doing instead: → Connecting Snowflake or BigQuery to ERPs, RFI logs, and field reports → Running LLMs to detect risk patterns—weeks ahead of time → Feeding alerts straight into Slack, Teams, or your inbox → Using Power BI to create live dashboards with real variance, not just plan vs. actual This isn’t about fancy tech. It’s about catching the problem before it hits your books. One client prevented a $2.1M overrun using a single signal layer. Another reduced time-to-decision by 73% across three divisions. Infra finance isn’t about faster reporting anymore. It’s about faster detection. Want to see how it works? DM me “Upgrade” and I’ll show you the system. Or repost if your finance team deserves sharper tools - not slower spreadsheets. .

Most construction projects don’t go over budget because of one big mistake. They slip, little by little — Through ignored scope changes, slow approvals, payment delays, and missing records. If you monitor projects under the 2017 FIDIC Red Book... And you’re not looking for the early warning signs of cost overruns... You’re already falling behind. Here’s what I watch for during site monitoring: - Unauthorized scope creep - Delayed design approvals - Poor program updates - Mismanaged payments and cash flow - Subcontractor failures - Compliance breaches Spotting these early isn’t optional. It’s the only way to protect your budget, schedule, and contract. Want the full breakdown? I put together a new insight report: - 7 key categories of cost overrun risks - Actionable field monitoring strategies - Based on the 2017 FIDIC Red Book framework Grab it below. Your next project might depend on it. #fidic #contracts #constructionclaims #disputeresolution #claimsmanagement #constructionlaw #constructionarbitration #infrastructure #projectfinance #ppp #ppps #contractmanagement #epc #projects #construction #infrastructure #project #finance

You don’t need more marketing spend to drive your customer base — you need a smarter approach to CAC (Customer Acquisition Cost). If you focus on these three game-changing strategies, you can scale your startup without bleeding cash on acquisition. Here’s how. 1️⃣ Increase Lifetime Value (LTV) When customers stay longer and spend more, your customer acquisition costs decrease over time, making every dollar spent more effective. → Use tailored onboarding and continuous education to ensure customers extract the full value from your product. The longer they stay, the more your upfront costs become justified. 2️⃣ Optimize Sales and Marketing Spend Instead of spreading resources thin across multiple channels, focus on data-driven attribution. Analyze which channels drive the highest return, and double down on them while eliminating underperforming efforts. → Conduct quarterly performance audits of your paid ads, email campaigns, and content efforts. Redirect budgets to top performers and optimize spend on high-impact channels. 3️⃣ Increase Average Contract Value (ACV) Bundling higher-tier products or services can increase your ACV while making each acquisition more cost-effective. Ensure your offerings are closely aligned with what your best customers need most, and demonstrate the additional value. → Upsell with data-backed insights. Track usage data to see which features customers engage with most, then offer personalized upgrades that they’ll find impossible to resist. By strategically increasing LTV, refining your marketing efforts, and raising ACV, you’ll accelerate your path to scalable growth. Smart founders know that sustainable success comes from making every interaction count. I help startups identify and accelerate their unique advantages to gain a competitive edge. Explore how we can work together: https://t2m.io/tmVRzGGc #startups #CAC #scaling #entrepreneurship #marketing #GTMstrategy

Yesterday we had a great session in the Talent Development Think Tank job search group on upskilling on a budget. It's critical to make sure you're skilling up and staying relevant in the marketplace so you're competitive with other jobseekers. 1️⃣ 𝐈𝐝𝐞𝐧𝐭𝐢𝐟𝐲 𝐭𝐡𝐞 𝐬𝐤𝐢𝐥𝐥𝐬 𝐲𝐨𝐮 𝐧𝐞𝐞𝐝 𝐭𝐨 𝐟𝐨𝐜𝐮𝐬 𝐨𝐧. To determine the skills you need most, identify 5-7 of your ideal roles. See what the most common skills are for each role, and focus on those. Some of these may be completely new skills to you, and others may be just sharpening the axe on skills you already have. 2️⃣ 𝐆𝐞𝐭 𝐚 𝐥𝐢𝐛𝐫𝐚𝐫𝐲 𝐜𝐚𝐫𝐝. When's the last time you've been to your local library? Beyond the standard checking out books for free, libraries have other resources that can help jobseekers. In many areas, your library card will get you access to LinkedIn Learning courses and Libby. LI Learning regularly adds new, relevant courses from industry experts. You can search by topic/skill to hone in on the courses you should be taking. Libby is an app that lets you download ebooks and audiobooks from your local library. So that giant book list you've been wanting to tackle is now doable for no cost. Bonus tip from a group member: Another great resource to get low cost ebooks and audio books is the Kindle Unlimited membership through Amazon which is $12/month, but has more and different offerings than the library or Libby. 3️⃣ 𝐀𝐜𝐜𝐞𝐬𝐬 𝐟𝐫𝐞𝐞 𝐜𝐨𝐧𝐭𝐞𝐧𝐭. Podcasts, e-conferences, webinars, articles, and more. There's no shortage of free content available. Focus on industry leaders or vendors, and see what content they have available. 4️⃣ 𝐕𝐨𝐥𝐮𝐧𝐭𝐞𝐞𝐫 𝐟𝐨𝐫 𝐫𝐞𝐚𝐥 𝐰𝐨𝐫𝐥𝐝 𝐞𝐱𝐩𝐞𝐫𝐢𝐞𝐧𝐜𝐞. For many, the best way to learn, is by doing. Often times, non profits or trade organizations will let you volunteer and try your hand at something new, even if you have limited experience. All experience is relevant, regardless of whether it was paid or unpaid. Use volunteering as a way to step outside your comfort zone and try new things. Register through Catchafire to be connected to nonprofits looking for volunteers or get involved with the local chapter of your professional trade organization. What other ways have you upskilled on a budget? #learninganddevelopment #upskilling #training #talentdevelopment