Many times the contractor project management team misreports the following -

1. overstates the progress of work.

2. underestimates the number of resources and time needed to complete a task

3. disregard valid claims made by suppliers & vendors

4. underplaying the problems such as late vendor deliveries and insufficiency of resources of subcontractors

Such misreporting leads to more loss of time and money than if it had been reported correctly. The reason for such misreporting starts from the ground level for fear of being beaten up by the superior in terms of losing a salary hike or promotion or simply goodwill of the boss. To mitigate such risk, monthly audits at the micro level should be conducted by a third party, so that a culture of proper reporting is created in the organization. The fees paid to such qualified external auditors will be far less than the loss the contractor sees at the end of the project.