Blog Post

Information Loss in Construction: Identifying & Eliminating Hidden Costs

10.06.2025 | 6 min read | Written by Elizabeth Chia

In the modern construction industry, the effective exchange of information is not just beneficial—it is essential. Whether it’s blueprints, safety documentation, site updates, or budget changes, timely and accurate data ensures that projects run smoothly.

Unfortunately, the reality on many job sites tells a different story. Delays, miscommunication, and fragmented documentation continue to plague construction workflows globally. In Southeast Asia’s rapidly developing markets, the situation is particularly pressing—over 65% of construction projects in the region face delays, frequently due to poor coordination and information silos.

The costs of such inefficiencies are far more than inconvenience. Hidden beneath missed deadlines and disjointed communication lies a deeper financial burden: information loss. When data is outdated, incomplete, or simply missing, it sets off a chain reaction of errors, miscalculations, and rework. However, with the right tools and mindset, these challenges can be mitigated, if not entirely eliminated.

The Global Challenge of Information Loss

Globally, the construction industry grapples with widespread inefficiencies caused by poor information management. A study covering nearly 16,000 major construction projects revealed that only 8.5% were completed on time and within the allocated budget. Contributing factors included frequent changes to project documentation, tools that fail to synchronize with one another, and inadequate communication between stakeholders.

Cybersecurity also emerges as a significant concern in today’s digitized construction landscape. In the Asia-Pacific region, 41% of organizations reported experiencing a data breach within the past year. Despite this, less than 40% of companies have implemented comprehensive cybersecurity protocols. Alarmingly, over 70% of construction firms still rely on paper documentation or non-secure messaging platforms such as WhatsApp for project communication. Furthermore, only 35% of firms have digitized their site reporting processes.

The financial ramifications of poor data management are severe. In 2020 alone, “bad data”—inaccurate, incomplete, or outdated information—cost the global construction industry an estimated $1.8 trillion. For a construction company with an annual turnover of $1 billion, this could equate to a staggering $165 million lost each year. These losses underscore the need for better data governance, digital tools, and standardized processes.

Why Inefficient Processes Cause Delays

Many of the delays seen in construction projects can be directly linked to inefficiencies in how information is managed and communicated. Communication breakdowns—often exacerbated by language differences, cultural misunderstandings, and non-standardized workflows—create friction between stakeholders. On-site teams and head offices frequently operate in silos, using outdated tools like paper checklists or spreadsheets. This slows down approvals, leads to conflicting updates, and hampers transparency.

Consider weekly site meetings: team members may take notes using different systems or even just jot them down in personal notebooks. This increases the likelihood of misinterpretation and lost information. Over time, such inefficiencies become normalized, leading to chronic delays, inflated costs, and compromised safety standards. The lack of a unified process also undermines trust among stakeholders, making collaboration more difficult.

Beyond project delays, information loss can cause major disruptions to operational workflows. Decisions are stalled, compliance risks rise, and project scopes can spiral out of control. Inaccurate information leads to rework, resource waste, and conflicts among team members—turning what should be smooth project execution into a chaotic endeavor.

Financial and Productivity Impacts

 The consequences of poor communication and data management are not just operational—they’re deeply financial. In Singapore alone, inefficiencies stemming from outdated digital practices cost the construction sector over SGD 1.1 billion annually. In countries like Vietnam and the Philippines, estimates suggest that up to 20% of total project costs are consumed by miscommunication and the need to manually redo tasks.

A growing body of research supports these figures. Studies reveal that around one-third of construction professionals routinely work with data they know is either inaccurate or incomplete. Despite this, many companies lack formal data strategies. Limited budgets, insufficient technical knowledge, and a lack of organizational support often hinder the adoption of effective solutions.

These data shortcomings directly impact employee morale and retention. When project managers are forced to juggle conflicting information across multiple sites, the chances of human error multiply. Stress levels rise, collaboration suffers, and disputes become common. The resulting workplace friction can damage the reputation of construction firms and weaken their relationships with clients and subcontractors.

The Role of Project Managers and Investors

Project managers and investors are uniquely positioned to champion change. As the construction industry in ASEAN countries modernizes, the roles of these stakeholders are evolving from passive overseers to active digital leaders. They must prioritize the development of integrated communication systems and the adoption of digital tools that promote transparency and accountability.

Some regional projects have already made significant strides. For instance, Malaysia’s Light Rail Transit 3 (LRT3) project mandated digital reporting, aiming to reduce information delays by 40%. Similarly, Vietnam’s urban railway projects in Hanoi and Ho Chi Minh City are embracing digitization to improve coordination and oversight.

The benefits of these transitions are far-reaching. When project data is accessible and consistent across all teams, productivity improves, errors decline, and trust is enhanced. Real-time data enables quicker decisions, more accurate forecasting, and more robust budget controls. Investors benefit from reduced risk exposure, streamlined timelines, and improved project ROI.

Advanced technologies such as Building Information Modeling (BIM), Internet of Things (IoT), and mobile apps are reshaping how construction projects are executed. These tools offer real-time updates, seamless collaboration, and comprehensive project tracking. Centralized platforms ensure that all stakeholders—from contractors to financiers—are aligned and informed.

How PlanRadar Helps Prevent Information Loss

One of the leading solutions in tackling information loss is PlanRadar, a cloud-based construction management platform used by over 170,000 professionals across more than 75 countries. PlanRadar empowers construction teams by centralizing all project documentation, communication, and reporting in one digital workspace.

The platform supports the logging of issues directly onto 2D plans or BIM models. Users can upload voice notes, images, and messages, enabling real-time communication and complete transparency. Each action is tracked, allowing teams to access detailed project histories and status updates instantly.

PlanRadar’s analytics and reporting features are particularly useful for managers and investors. Reports can be generated in seconds, budgets can be tracked continuously, and tasks can be prioritized based on real-time site conditions. The platform significantly reduces reliance on paper-based documentation, lowering the risks associated with lost files, miscommunication, and duplication of work.

Imagine a scenario where a warranty document is misplaced, delaying equipment repairs and escalating costs. With PlanRadar, such issues are avoided because all records are digitized, searchable, and securely stored. The platform ensures compliance, promotes accountability, and protects firms from avoidable disputes.

Conclusion

 Information loss is a silent but powerful disruptor in construction. It leads to project delays, increased costs, and declining quality—challenges that are entirely preventable in today’s digital age. By embracing data centralization and modern project management tools, construction firms can eliminate hidden costs and regain control of their operations.

Platforms like PlanRadar provide the foundation for digital transformation. They simplify communication, ensure documentation accuracy, and support proactive decision-making. In a sector where margins are tight and competition is fierce, adopting these technologies is not just a strategic advantage—it is a necessity for sustainable success.

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