Complementary practices/topics for the Construction Industry: Cognitive Biases

Cognitive biases are consistent patterns of thought that lead individuals away from logical reasoning and objective decision-making. These biases occur because the human brain often relies on mental shortcuts, known as heuristics, to process information and make quick decisions. While these shortcuts can be practical and time-saving, they can also result in flawed reasoning, distorted perception, and poor judgment.

The primary aim of identifying cognitive biases is to raise awareness of how they impact the decision-making and behavior of professionals in their daily lives. By recognizing these biases, individuals can develop strategies to mitigate their effects in both personal and professional contexts. This understanding promotes a more objective and rational approach to solving complex problems, reducing errors, and improving outcomes.

In professional environments, particularly within the construction industry, understanding cognitive biases helps professionals identify the specific biases that may affect project outcomes, communication strategies with stakeholders, team collaboration, and common decision-making methods on construction sites. By addressing these biases, construction teams can achieve fair and effective project goals, enhance project efficiency, and strengthen team dynamics.

Cognitive biases arise from three key factors:

1)    ***Evolutionary Basis***: The human brain developed the ability to fast-process vast amounts of information as a survival mechanism. Heuristics, or mental shortcuts, simplify complex decision-making.

2)    ***Cognitive Load***: When faced with overwhelming information or time pressures, cognitive biases reduce the mental effort required to make decisions.

3)    ***Emotional Influences***: Emotions cause perception shaping and judgment, often leading to biased thinking.

Several cognitive biases, such as optimism bias, confirmation bias, anchoring bias, information bias, status-quo bias, the bandwagon effect, the Dunning-Kruger effect, and the planning fallacy, are prevalent in the construction industry. These biases can impact project cost estimates, schedules, quality assurance measures, quality control processes, and risk assessments. This article examines how these biases manifest in the daily decisions of construction professionals on job sites and how addressing them can enhance project efficiency and safety.

Optimism Bias

Optimism bias occurs when project team members overestimate the likelihood of positive outcomes (opportunities) while underestimating challenges and risks. In the construction industry, this bias often manifests in overly ambitious project schedules and underestimated budgets. For example, a project manager might assume that a project will be completed on time without accounting for potential delays due to Force Majeure events, supply chain disruptions, safety regulations and ordinances, issues because of stakeholder miscommunication, lack of qualified personnel, or labor shortages. Addressing optimism bias requires realistic planning, benchmarking to a recently delivered similar project, regular risk assessments, and input from diverse team members and consultants to provide a balanced and more unbiased perspective.

Confirmation Bias

Confirmation bias refers to the tendency to seek or interpret information that confirms pre-existing beliefs while ignoring evidence that contradicts them. In construction projects, this can lead to poor decision-making, such as persisting with flawed design documents or collecting proposals without sufficient drawings and specs because they align with prior convictions. For instance, a team might dismiss feedback about a new material's shortcomings because they are invested in its perceived advantages. To mitigate this bias, design offices, consultants, construction specialists, and site teams should foster an open feedback culture and rely on data-driven judgemental risk analysis to come up with more reliable decisions.

Anchoring Bias

Anchoring bias involves placing disproportionate weight on the first piece of information encountered when making decisions. In construction, initial cost estimates or project timelines often become fixed reference points, even when new data suggests significant changes. This can lead to unrealistic expectations and misallocation of resources. To combat anchoring bias, it is important to regularly revisit and adjust initial assumptions as new information becomes available, while also encouraging flexibility in project planning.

Information Bias

Information bias arises when professionals collect excessive data, believing that more information automatically leads to better decisions. In the industry, overanalyzing details without prioritizing actionable insights can slow decision-making and delay projects. For example, focusing on minor design elements while neglecting critical safety or structural considerations could derail progress. To avoid or mitigate information bias, project teams should focus on collecting relevant, high-priority data and emphasize decision-making efficiency.

Status-Quo Bias

Status-quo bias is the preference for existing methods or practices over exploring new approaches. In construction, this bias can hinder innovation, such as adopting advanced technologies like Building Information Modeling (BIM), construction management software usage, or sustainable construction techniques. Professionals may resist these changes, believing that traditional methods are more reliable. Addressing status-quo bias involves encouraging continuous improvement, training teams on new technologies, and highlighting the benefits of innovation through pilot projects.

Bandwagon Effect

The bandwagon effect occurs when individuals adopt an approach or decision because others are doing the same. In construction, this bias might lead teams to choose popular but unsuitable materials or techniques without evaluating their appropriateness for the project. For instance, a contractor might switch to a trendy construction method because its rival is utilizing it, even if it doesn’t align with the project's requirements and objectives. Mitigating this bias requires independent analysis, thoughtful planning, and ensuring decisions are based on project-specific needs.

Dunning-Kruger Effect

The Dunning-Kruger effect describes a situation where individuals with limited knowledge or expertise overestimate their abilities. This bias can be particularly problematic in construction when less experienced professionals take on responsibilities beyond their competence, leading to errors and inefficiencies. For example, a novice site manager might underestimate the complexity of coordinating subcontractors, resulting in schedule delays. Construction companies should invest in training, studies in construction delivery methods, and mentoring to tackle this bias.

Planning Fallacy

The planning fallacy refers to underestimating the time, costs, and risks involved in a project while overestimating its benefits. This bias is common in construction, where teams often believe projects will proceed smoothly despite historical evidence to the contrary. Unrealistic timelines and budgets set the stage for cost overruns and delays. Tackling the planning fallacy requires adopting robust project management practices, incorporating contingency buffers, and learning from past projects to set achievable goals.

Cognitive biases play a significant role in shaping decisions and behaviors in the construction industry, often leading to inefficiencies, errors, and safety risks. From optimism bias to the Dunning-Kruger effect, these mental shortcuts can impact cost estimates, schedules, quality control, risk assessments, and team dynamics. However, by identifying and addressing these biases, construction professionals can foster more rational, objective decision-making, improve project outcomes, and enhance collaboration. Implementing strategies such as fostering open communication, being transparent while sharing information, relying on data-driven planning, and investing in education and training can help mitigate these biases and ensure the successful completion of construction projects. Recognizing the influence of cognitive biases is not just a theoretical exercise—it is a practical necessity for sustainable growth, constant progress, and innovation in the construction industry.

Ari Zingillioğlu