From Approval to Execution: Why ROI Gets Lost and How to Fix It.
Author: Emma Bedford, General Manager
ROI & the Missed Opportunities
Coming from a background in design, strategy, and construction—not finance—I’ve noticed something odd about how capital investment projects are managed.
Before a project gets the green light, every dollar is scrutinized. ROI projections are carefully calculated. Financial models are built. But once execution begins? That laser focus on ROI often fades into the background.
The project team—PMs, architects, engineers, builders—are rarely aligned with, or even aware of, the financial goals that justified the investment in the first place. And that’s a massive, missed opportunity.
If ROI Mattered at Approval, Why Doesn’t it Matter in Execution?
The people making key decisions during the project—on materials, design refinements, phasing, and risk—have the most influence over cost, efficiency, and long-term performance. Yet, they're often only given high-level directives: "Stick to the budget." "Meet the deadline."
But is that enough?
A McKinsey study found that large capital projects typically overrun budgets by 30% to 40%, with a significant portion of that attributed to misaligned decision-making during execution. This highlights a critical issue: if project teams aren’t actively aligned with ROI objectives, the risk of cost overruns and underperformance grows significantly.
And ROI isn’t just a static number. Market conditions shift, and long-term success is shaped by far more than just construction costs. That’s why it’s critical to embed success criteria from the outset, ensuring the entire project team, not just finance, is empowered to contribute to ROI throughout the project lifecycle.
ROI Is About More Than Just the Build
True ROI isn’t just about delivering a project on budget, it’s about how that asset performs over its entire lifecycle. Every decision made during design and construction affects long-term operating costs, maintenance, and even revenue generation. A short-term budget focus without this perspective is a recipe for underperformance.
For example, opting for a cheaper HVAC system may save money upfront, but if it leads to higher energy costs and maintenance expenses over the next 20 years, is it really the right decision? ROI-minded project execution ensures cost, performance, and long-term value are weighed together—not in isolation.
Identifying the Target
Imagine hiring a personal trainer but never telling them if your goal is to run a marathon or lose 10kg. Sure, they’ll improve your fitness, but the results might not be what you expected.
Now apply that logic to construction. Clients are the experts on their business, but they’re not necessarily engineering, design, or construction specialists. If their project team is working toward a budget or timeline without a deeper understanding of what success really looks like, valuable opportunities are left on the table.
Creating better alignment between project teams and ROI isn’t about applying more financial pressure. It’s about making smarter decisions, together, that maximise value for everyone involved.
So, How Do We Fix It?
To close this gap, organisations should:
Make ROI a shared responsibility—not just a finance team metric. Include project stakeholders, consultants, and working groups in the conversation wherever possible.
Define measurable success beyond just cost and deadlines. What does long-term value look like?
Track ROI post-completion. Learn from past projects and integrate those insights into future ones.
Bring in key experts earlier. ECI (Early Contractor Involvement) allows specialists to de-risk your project from the outset.
Work with a partner who gets it. (Ahem, Connected! 😉) We believe ROI shouldn’t just be a number at approval—it should drive smarter execution at every stage.