Project health assessment: warning signs of a project in trouble

A project health assessment is an independent review of a capital project in progress. Experienced reviewers from outside the project team look at scope, schedule, cost, procurement, organization and risk, and give the owner an honest picture of where the project stands and what to do about the problems they find.

Projects rarely fail suddenly. The warning signs are usually there months before the budget or schedule breaks, but the people closest to the work are often too busy to see them.

Ten warning signs

1. Progress reports look better than the site. Percent complete keeps rising, but key deliverables are not finished.
2. Engineering is still changing during construction. Late design changes are one of the most common sources of cost growth.
3. Vendor data is late. Equipment drawings arrive after the piping and foundations that depend on them have been designed.
4. The open items list keeps growing, and many items have no owner.
5. The same problems come up in every meeting.
6. Contingency is spent early.
7. The schedule changes, but the end date does not.
8. Key people leave or are overloaded.
9. Changes are carried out before they are approved, or are not in the forecast.
10. The owner learns about problems from the site, not from the reports.

What the assessment reviews

Scope and design basis

Is the scope clear and frozen? Do the design basis and the actual design still match?

Schedule

Is the schedule realistic and logically linked? Is the critical path the one the team is managing?

Cost

Do the estimate, commitments and forecast reflect what is actually happening, including changes not yet approved?

Procurement

Are long-lead items ordered and on track, and is vendor data arriving on time?

Organization and process

Are roles and decision rights clear? Is the project management process followed, or only documented?

Risk

Are the real risks on the register, with owners and actions?

How it works

1. Document review: schedule, cost reports, change log, risk register, key deliverables.
2. Interviews: owner, project manager, engineering, procurement and construction leads, usually over a few days.
3. Site visit, if the project is in construction.
4. Report: findings, risk areas in order of importance and a remediation plan.

What you get

A short report the owner and project team can act on. The goal is not to assign blame. It is to give an honest picture while there is still time to act.

The reviewers have no stake in the project’s past decisions, and that lets them ask the uncomfortable questions. See Engineering for CHR’s project health assessments, read about the owner’s engineer role, or contact us.

Frequently asked questions

When is the best time for a project health assessment?

Before a major commitment (for example before construction starts) or as soon as warning signs appear. Some owners schedule one at each stage gate.

How long does it take?

Typically a few weeks from start to report, depending on the project’s size and how quickly documents and people are available.

Does the project team need to stop work?

No. The reviewers need a few hours of each key person’s time for interviews; the project continues.