How do I know which of my construction projects are going off track?
Score every live project red, amber or green across five areas: safety, quality, time, cost and contracts. Base the score on leading signals (things that warn you early, like open defects or late subcontractor paperwork), not just lagging ones (like an incident or a cost blowout). Pull the data automatically from the software your team already uses, and look at it weekly, not monthly.
Why the monthly report finds problems too late
Most builders find out a project is in trouble at the monthly meeting, or when the client rings. By then the number in the cost report is already locked in. The report tells you what happened. It doesn't tell you what's about to happen.
The early warnings are usually sitting in your systems already. A defect list that keeps growing. A subbie whose insurance lapsed last week. RFIs that sit unanswered for ten days. Variations that were agreed on site but never priced. None of these look serious on their own, which is exactly why they get missed.
The five areas worth scoring
Keep it to five. Any more and nobody reads it.
Safety. Open hazards, overdue inspections, toolbox talks missed, near-miss reports. These lead. Incidents lag.
Quality. Open defects and how long they have been open, failed inspections, rework.
Time. Programme slippage on the critical path, late deliveries, open RFIs and their age.
Cost. Cost to complete against budget, unpriced variations, committed costs that haven't been invoiced yet.
Contracts. Subcontractor compliance (insurances, licences, SWMS), notices with deadlines, claims coming up.
How red, amber and green should work
Green means nothing needs you this week. Amber means something is trending the wrong way and someone should look. Red means a decision is needed now.
The trick is setting the thresholds once, in plain terms, and letting them run. For example: any defect open longer than 14 days turns quality amber; an expired subcontractor insurance turns contracts red. Agree the rules with your PMs so the colours are trusted, not argued about.
Where the data comes from
You don't need a new system. Your project management, safety and accounting software already hold most of it. The work is connecting them so the scores update on their own, instead of a PM spending Friday afternoon copying numbers into a spreadsheet.
Once it's connected, every project gets the same score, the same way, every week. You can see the whole portfolio on one screen and open the red ones first.
What to do with a red project
Treat red as a prompt for a conversation, not a verdict. Ask the PM three questions: what caused it, what fixes it, and what do they need from you. Most reds turn amber within a week once someone is looking at them. The ones that don't are the ones you needed to know about.
Common questions
What is a lead indicator in construction?
A lead indicator is a measure that changes before the outcome you care about. Overdue inspections and open hazards are lead indicators for safety incidents. Unpriced variations are a lead indicator for a cost overrun.
How often should project health be reviewed?
Weekly is the sweet spot for most builders. Daily creates noise and monthly is too late to change the outcome. Red items should alert the right person as soon as they turn red.
Do I need to replace my project management software?
No. Project health works best when it reads from the tools your team already uses, so nobody has to enter anything twice.
Is this only for big builders?
No. A builder running three or four jobs at once benefits just as much. Smaller teams usually have less time to chase early warnings, not more.