Cost overruns don’t happen all at once—they grow quietly, driven by underestimated risks, vague scopes, and weak cost controls. In this blog, we walk through a distributor’s experience where project costs spiraled beyond budget and uncover the missteps that caused it.
The Incident: Oversized Custom Panels for a Government Project
A glass distributor committed to a fixed-price contract for oversized laminated IGUs on a courthouse project. The quote was competitive, but did not fully account for specialized handling equipment, oversized transport permits, or the learning curve for a new interlayer.
Midway through the job, site access issues led to rescheduling and crane rebookings. The interlayer had a higher defect rate than expected, requiring a 15% overrun in fabrication.
What Went Wrong
No buffer was built in for learning curve on new material
Access logistics were assumed based on prior site—not verified
Handling and crane costs were based on outdated regional rates
Financial Outcome
Final costs were 31% above original projection
Profit margin dropped from 22% to 6%
The client flagged the project for audit, affecting future bid consideration
Process Changes Introduced
Risk Factor Adjustment Model Applied
Bids are now adjusted using a weighted risk score based on site, scale, and material complexity.
Scope Review with Third-Party Validators
Complex jobs require secondary reviews of access, staging, and labor estimates.
Learning Curve Buffer Added for New SKUs
Any first-time materials now trigger an added buffer for time, waste, and quality control.
Takeaway for Distributors
Margins aren’t lost on-site—they’re lost in the quote. Overruns are the result of weak upfront assumptions, not downstream execution alone.
