In 2023, it was reported that the Buffalo Bills stadium project was projected to have $300M in cost overrun.
The following reasons were cited for increased costs:
1️⃣ Surging Labor Costs
2️⃣ Surging Material Costs
The project, initially estimated at $1.4 billion, was more recently reported to be on track to cost close to 1.7 billion.
A major concern is that the Buffalo Bills are contractually required to cover overruns.
❌ The Problem: With cost overruns being a reality of the construction industry, they (cost overruns) could at best be irritating, and at worse, cause the business to be “on the hook” for the loss.
Here’s how Jonas’ integrated construction software helps mitigate cost overruns while protecting against profit fade.