The Recognition Gap
Site teams are problem solvers. When something unexpected happens, they don't down tools and wait for instructions. They adapt, improvise, and find ways to keep the project moving.
That's exactly what clients want. It's also why so much money gets left on the table.
The issue isn't that site teams don't do valuable work. It's that valuable work often doesn't get recognised as chargeable, doesn't get recorded properly, and doesn't make it through the commercial process to become recovered revenue.
Where Money Gets Lost
The gaps between work performed and money recovered occur at multiple points:
At the point of doing: Site teams often don't realise that what they're dealing with constitutes a variation or compensation event. They see it as just part of the job. The commercial significance doesn't register.
At the point of recording: Even when work is recognised as chargeable, recording it properly takes time that busy site teams don't have. The entry in the site diary says 'dealt with drainage issue' rather than documenting the extra labour, plant, and materials involved.
At the point of claiming: Commercial teams work from what's recorded. If the records don't capture the full picture, the claim doesn't reflect the true cost. Quantity surveyors can only value what they can evidence.
At the point of negotiating: Weak records lead to weak claims. When challenged, there's nothing to fall back on. The claim gets negotiated down, or abandoned entirely.
The Compound Effect
Each individual loss might seem small. An hour of unrecorded standing time. A delivery that came to the wrong location. An instruction given verbally that changed the work sequence.
But these losses compound. A few percent here, a few percent there. By the end of the project, margin has eroded significantly compared to what was legitimately earned.
On a £10 million project, losing just 2% of legitimate entitlement means £200,000 walking out the door. On a typical contractor margin, that could be the difference between profit and loss.
Why Site Teams Don't Record
Understanding why recording falls short is essential to fixing it:
Time pressure: Site teams are focused on delivery. Recording feels like overhead that slows them down.
Tool friction: If recording systems are clunky, complicated, or time-consuming, people avoid using them properly.
Lack of commercial awareness: Many site staff haven't been trained to recognise what has commercial significance. They don't know what they don't know.
No feedback loop: When good records lead to successful claims, site teams rarely hear about it. The connection between their recording and revenue recovery is invisible.
Cultural factors: In some organisations, detailed recording is seen as bureaucratic or even slightly disloyal—as if looking for variations is somehow adversarial.
Building Better Bridges
Closing the gap requires building bridges between site activity and commercial capture:
Training that sticks: Site teams need practical training on recognising claimable events. Not abstract contract law, but concrete examples from their type of work. 'When this happens, record this.'
Tools that help: Recording systems should make capture quick and comprehensive. Prompts that ensure nothing gets missed. Fields that structure information in commercially useful ways.
Real-time commercial support: When site teams can quickly consult with commercial staff about whether something is claimable and how to record it, capture improves dramatically.
Visible success stories: When good records lead to successful recovery, tell the site team. Create the feedback loop that reinforces good behaviour.
Cultural reinforcement: Leaders need to consistently message that thorough recording is professional excellence, not opportunism. The contract entitles you to be paid for changes—recovering that entitlement is simply good business.
The Commercial Team's Role
Site teams can't carry this alone. Commercial teams need to actively engage with site records, not just wait for them to arrive at month end.
Effective practices include:
- Daily review of site diaries to identify potential claims early
- Regular site visits to understand what's actually happening
- Proactive discussion with site managers about ongoing issues
- Clear guidance on what information is needed for different claim types
- Timely processing that demonstrates records are being used
Measuring the Gap
You can't improve what you don't measure. Track the difference between initial entitlement identified and final recovery achieved. Where does attrition occur? At notification? At substantiation? At negotiation?
Understanding where claims weaken tells you where to focus improvement efforts. Sometimes it's site recording. Sometimes it's commercial processing. Sometimes it's negotiation strategy.
The goal is simple: get paid for the work your teams do. Every pound recovered that would otherwise have been lost flows straight to the bottom line.
Key Takeaways
- Work gets lost at four points: recognition, recording, claiming, and negotiation
- Compound effect of small losses can represent 2%+ of project value—straight off your margin
- Site teams don't record due to time pressure, tool friction, and lack of commercial awareness
- Training must be practical with concrete examples, not abstract contract theory
- Create feedback loops so site teams see how their records lead to successful recovery
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