The Silent Cancer of Industrial Development: How Poor Planning Fuels Frauds and Disasters

Under the unforgiving midday sun, a construction supervisor wipes the sweat from his brow as he watches helplessly a twisted pile of steel on the ground. The structural calculation was wrong from the start. No one noticed until the crane lifted the beams, and then, suddenly—boom: with a dry thud and a cloud of dust, the structure collapsed. There's no turning back. Work halts, costs rise, the schedule shatters and time accelerates the loss.

However, an industrial building doesn't collapse in one day. It starts months earlier, in an office, when a decision is made to build without room for error, ignoring negligence and even corruption.

Gilberto González, with over 30 years of experience in the industrial real estate market and overseeing RMSG's operations in Mexico, speaks about the costliest mistakes and bad construction practices—those that constantly repeat and always come at a price.

The first problem lies within the industry's internal flaws: starting projects without a full definition, executing them without necessary studies and calculations, and omitting crucial analyses like hydrological or structural resistance assessments. These mistakes and omissions, sometimes due to negligence and others driven by a desire to save time and money in the short term, only multiply risks and operational costs.

"What's gained at the start is lost many times over in delays, cost overruns, and litigation," says Gilberto.

The second problem is the lack of adequate planning. When a project isn't well organized from the beginning, failures multiply. Poorly developed engineering, incomplete plans, deficiencies in work schedules, disorganization in purchases and delivery times, poor management of materials and personnel, and omissions in government procedures and union negotiations cause delays, chaos, and losses.

"That's why it's indispensable to have an excellent project manager and a committed, honest, diligent, and responsible team," warns the RMSG director.

The third problem stems from external factors: the weather, environmental contingencies, changing public policies, fines, corruption, legal issues, and delays from distributors. While these situations are hard to predict, failing to account for them from the outset can paralyze a project for weeks, months, or even years.

These three obstacles, or a combination of them, don't just slow down the construction process; they also make it vulnerable to fraud. The lack of planning, omission of controls, and internal flaws allow contractors to inflate costs, disappear materials, or compromise quality to benefit themselves.

Gilberto explains that preventing fraud requires a rigorous process in contractor selection and evaluation, conducting transparent bidding processes, and establishing fixed budgets that ensure the project's costs remain within the agreed limits unless adjustments are made to the developer's specifications. Continuous oversight of the construction progress and the paperwork is also crucial to prevent inconsistencies.

"To ensure compliance with contracts, bonds and insurance are required, along with strict supervision of the project's progress, both physically and in terms of documentation," he adds.

According to the industrial real estate development expert, reducing losses depends primarily on precise planning before work begins. This means clearly defining design parameters, schedules, and legal aspects aligned with local and international standards without unnecessarily inflating costs with excessive measures to avoid delays and long-term cost overruns.

As long as developers persist in approaching projects without a defined strategy, the works will continue to crumble under an unforgiving sun, where every omission and shortcut will come at a price. Let's not forget that disaster rarely appears evident from the start because it's slowly developing, like a silent cancer. And often, the most dangerous enemy isn't external factors like weather or bureaucracy, but internal failures: a lack of vision and negligent control.

This reminds us that constructing an industrial building isn't just about calculations and materials; it's an exercise in responsibility, discipline, and foresight. Only when these principles are integrated into every project stage does the structure rise and endure over time as a profitable investment.

For more information on Mexico's commercial real estate market performance, visit SiiLA Resource or email us at contacto@siila.com.mx.