The Project Rescue Playbook: 5 Signs Your Construction Project Is in Trouble (and How to Fix It)
It’s every developer’s and lender’s worst nightmare. A project that began with promise is now dead in the water. Timelines are shattered, budgets are blown, and communication has broken down. The asset, instead of generating value, is now a significant liability.
This scenario is more common than many think. At Xtraunit, we are often brought in by stakeholders—lenders, investors, and fund control companies—when a project has gone off the rails. Our role is to step into the chaos, diagnose the core problems, and execute a strategic turnaround.
Based on our experience, including the successful rescue of the stalled 20-unit Killion Street project in North Hollywood, we’ve identified five critical warning signs that your project is in trouble. Here’s the playbook on how to spot them and, more importantly, how to fix them.
Sign #1: The Flow of Information Stops
What it looks like: Your weekly progress reports have become vague or have stopped altogether. RFIs (Requests for Information) go unanswered for weeks. You can’t get a clear, data-backed answer on budget status or schedule milestones. This communication breakdown is often the first sign of deeper, systemic problems.
The Fix: Enforce Radical Transparency with Integrated Systems. When we take over a project, our first action is to establish a single source of truth. We deploy project management software like Procore to centralize all communication, documents, and financial data. We re-establish weekly OAC (Owner-Architect-Contractor) meetings with clear, data-driven agendas. This restores visibility for all stakeholders and holds every team member accountable. There are no more hiding places for bad news.
Sign #2: A Stack of Unresolved LADBS Corrections
What it looks like: The project is unable to pass critical inspections. The site is plastered with correction notices from the Los Angeles Department of Building and Safety (LADBS), and the existing contractor seems incapable of resolving them. The building cannot be enclosed, leaving the structure exposed to the elements.
The Fix: A Forensic Code & Compliance Audit. This isn’t just a construction problem; it’s a technical expertise problem. Our team performs a forensic audit of every outstanding correction notice. We meet directly with LADBS inspectors to understand their concerns and demonstrate a new level of competence.
- Case Study: Killion Street: The project was buried in unresolved notices related to fire-rated assemblies, plumbing, and ventilation. Our team methodically addressed each item, surgically removing and replacing non-compliant work, and walking the inspectors through the corrections until every single notice was cleared, allowing the project to finally be closed in.
Sign #3: The “Blame Game” Between Subcontractors
What it looks like: Progress has stalled because the plumber is blaming the framer, who is blaming the electrician. This indicates a catastrophic failure of on-site leadership and coordination. Subcontractors are likely not being paid on time, and trust has completely eroded.
The Fix: Re-establish the Chain of Command. A successful project requires a strong General Contractor who takes ownership. Our first step on-site is to triage the existing workforce. We identify and retain the competent subcontractors, establish fair, updated contracts, and guarantee prompt payment for quality work. For the underperforming or unqualified trades, we bring in our trusted network of expert resources. By creating clear scopes of work and providing decisive leadership, we end the blame game and get crews working productively again.
Sign #4: Constant Change Orders for “Unforeseen” Issues
What it looks like: You are being hit with a stream of costly change orders for issues that should have been identified during design or early construction. This is a classic symptom of a poorly coordinated plan set and a lack of foresight.
The Fix: Integrate Design and Construction Expertise. As a design-build firm, we prevent this problem from the start. But in a rescue scenario, we apply the same thinking. We bring our in-house architects and engineers to the site to solve problems efficiently. Instead of issuing a change order for every problem, we look for holistic solutions. We analyze if a plumbing reroute can be solved with a simple framing adjustment, avoiding a costly domino effect of rework. This integrated problem-solving stops the financial bleeding.
Sign #5: The Budget Is a Black Box
What it looks like: You have no real idea where the money has gone. The financial reporting is a mess of mismatched invoices and vague draw requests. The lender has lost confidence and is hesitant to release more funds.
The Fix: Open-Book Financial Forensics. To regain financial control, we conduct a complete audit of all project expenses to date. We create a new, transparent budget for the remaining scope of work. Every cost is tracked in real-time, and pay applications are backed by meticulous documentation. This open-book approach restores the lender’s confidence and ensures every dollar spent from that point forward is directed effectively toward project completion.
From Chaos to Certificate of Occupancy
A stalled project doesn’t have to be a lost cause. With the right expertise, leadership, and a disciplined process, it is possible to rescue the asset and guide it to a successful completion. The Killion Street project went from being a multi-year failure to a fully leased, revenue-generating building because we implemented this exact playbook.
Is your project showing signs of trouble? Don’t wait for it to fail.
Contact us for a confidential consultation. Let our expert team assess the situation and provide a clear, actionable plan to get your project back on track.