Construction project portfolio management (PPM) tools are critical for managing the complexities of modern construction projects, from billion-dollar megaprojects to fast-moving infrastructure upgrades. Yet, despite their growing adoption and importance, many PPM solutions leave significant gaps-costing the global construction industry an estimated $1.6 trillion annually in lost productivity ^7,8. As construction projects and portfolios become more complex, bridging these gaps is essential for maximizing return on investment, minimizing risk, and driving organizational success.

Below, we explore the five most common gaps in construction PPM tools, supported by industry data, and discuss how organizations can address them with advanced, industry-leading solutions.

1. Fragmented Data Visibility

Construction projects generate vast amounts of data-from schedules and budgets to procurement and quality records-but this information often remains siloed across disparate systems and teams. Only 37% of engineering and construction firms have fully integrated project management systems, leading to delays, miscommunication, and costly rework^5,7. The cost of poor data and miscommunication in the U.S. construction industry alone is estimated at $177 billion annually⁷.

2. Resource Mismanagement

Balancing labor, equipment, and materials across multiple projects is a persistent challenge. Poor resource allocation is a leading cause of project overruns: 30% of large construction projects exceed budgets by 20% or more⁹. Top-performing firms-those in the upper 20%-are nearly twice as likely to integrate resource management tools with their project portfolios, optimizing utilization and reducing idle time. In fact, 69% of these leaders have such integration in place, and 66% of their projects come within 90% of their planned schedules⁷.

3. Lack of Portfolio-Level Risk Analysis

While most construction PPM tools offer project-level risk management, few aggregate and analyze risks across the entire portfolio. This oversight can result in unanticipated cascading effects-such as delays or cost overruns-that impact multiple projects simultaneously. Only 2.5% of projects achieve full success when risks are managed in isolation⁷.

4. Weak Strategic Alignment

Projects that are not aligned with organizational strategy can drain resources and deliver limited value. Research indicates that firms with aligned portfolios see 57% more projects meet objectives, 45% stay within budget, and 50% finish on time^5,7. However, 68% of organizations still lack tools to connect projects to corporate strategy⁵.

5. Limited Integration with Business Objectives

Many construction PPM tools focus narrowly on operational execution, neglecting broader business outcomes. The construction industry ranks just above agriculture in technology adoption, and only 17% of firms use advanced analytics to align projects with financial targets^7,8. About 44% of projects fail because they are not aligned with business objectives⁵.

Closing the Gaps: A Path Forward

To address these challenges, construction organizations need to integrate enhanced PPM tools that:

• Centralize data to eliminate silos and enable real-time decision-making.
• Optimize resources with advanced planning and forecasting.
• Aggregate and analyze risks at the portfolio level to mitigate systemic threats.
• Align projects with strategic objectives through dynamic roadmaps and scenario analysis.
• Integrate seamlessly with existing systems to enhance-not replace-current workflows.

Capability-leading PPM platforms such as Planview deliver many if not all these features, offering modular and scalable solutions that complement construction-specific systems. For example, dashboards can pull data from widely used tools, such as Procore, providing executives with a holistic view of portfolio health without disrupting field operations^7,8.

The Bottom Line

The construction industry is evolving rapidly, but persistent gaps in data visibility, resource management, risk analysis, strategic alignment, and business integration continue to undermine project success. By adopting advanced, analyst-recognized PPM solutions and best practices, construction firms can close these gaps, reduce waste, and deliver projects that align with both immediate needs and long-term business goals. As the sector faces rising pressure to innovate and do more with less, the right project portfolio management approach will separate industry leaders from the rest.

References

1. 25 project management statistics to guide your plans in 2025 – Content Snare
2. 110+ Project Management Statistics and Trends for 2025 – Monday.com
3. 2025 Engineering and Construction Industry Outlook – Deloitte
4. [Project Portfolio Management Trends: Navigating the Future in 2025 – Green Project Management]
5. Construction Project Management Statistics 2025 – LLCBuddy
6. Construction Industry Statistics 2025 – BizPlanr.ai
7. Benefits of Construction Project Portfolio Management – Hexagon
8. Construction trends 2025: A tech reckoning – The Future of Commerce
9. How Firms are Preventing Construction Overruns in 2025 – CMiC