Decision Gates and Go/No-Go Criteria

Key Takeaways

Four-gate model provides formal checkpoints at pre-construction, rough-in, pre-finish, and completion.
A single mandatory criterion failure means No-Go regardless of other performance.
Kill criteria defined in advance prevent emotional continuation of failing projects.
Gate documentation feeds lessons learned for systematic improvement across projects.

Decision gates are formal checkpoints where project quality, budget, and timeline are evaluated against criteria to determine whether to proceed, pause, or redirect.

Decision Gates

Gate 1: Four-Gate Decision Model

Gate 1 — Pre-Construction: demo complete, hidden conditions assessed, scope finalized, budget confirmed within contingency, permits issued, materials ordered. Decision: proceed to construction, adjust scope/budget, or halt. Gate 2 — Rough-In Complete: all rough inspections passed, no critical/major defects open, budget tracking within 10% of estimate, schedule within 5 days of plan. Decision: proceed to finishes or pause for corrections. Gate 3 — Pre-Finish: substrates approved, materials on site and verified, finish schedule confirmed with subs, budget tracking within 5% of final estimate. Decision: proceed to finishes or address substrate/budget issues. Gate 4 — Completion: all inspections passed, punch list <30 items with 0 critical/major, CO issued or imminent, final costs within budget, property market-ready.

Gate 2: Go/No-Go Criteria

Each gate has mandatory (must pass) and advisory (influence decision) criteria. Mandatory criteria: all open critical defects resolved, required inspections passed, budget within defined tolerance, permits current. Advisory criteria: schedule adherence, minor defect count, material delivery status, market conditions update. A single mandatory criterion failure means No-Go regardless of advisory criteria performance.

Gate 3: Escalation and Intervention

When a gate fails: document specific failure criteria, assess root cause and correction path, estimate cost and time to achieve Go criteria, update project pro forma with revised assumptions, make decision based on revised returns vs. alternatives. Kill criteria: define in advance what would cause project abandonment—typically when revised returns fall below minimum acceptable return or correction timeline exceeds market window.

Gate 4: Gate Documentation

Each gate review produces: gate evaluation form (criteria status), updated budget summary, updated schedule, risk register update, decision record with rationale, action items with owners and deadlines. Gate documentation becomes part of permanent project file and feeds lessons-learned database for future projects.

Risk Mitigation Plan

Proceeding past a gate with open critical defects

Impact: Defect becomes 5-10x more expensive to correct after covering

Mitigation

Zero critical defects is a mandatory Go criterion at every gate

Not defining kill criteria before project starts

Impact: Emotional attachment leads to throwing good money after bad

Mitigation

Define minimum acceptable return and maximum timeline at acquisition

Treating gates as administrative exercises rather than real decisions

Impact: Problems identified but not acted upon, gates lose credibility

Mitigation

Gate decisions must result in documented actions with owners and deadlines

Key Takeaways

✓Four-gate model provides formal checkpoints at pre-construction, rough-in, pre-finish, and completion.
✓A single mandatory criterion failure means No-Go regardless of other performance.
✓Kill criteria defined in advance prevent emotional continuation of failing projects.
✓Gate documentation feeds lessons learned for systematic improvement across projects.

Sources

PMI Construction Extension — Quality Gates(2025-01-15)
NAHB Project Control Points for Remodelers(2025-01-15)

Common Mistakes to Avoid

Proceeding past a gate with open critical defects

Consequence: Defect becomes 5-10x more expensive to correct after covering

Correction: Zero critical defects is a mandatory Go criterion at every gate

Not defining kill criteria before project starts

Consequence: Emotional attachment leads to throwing good money after bad

Correction: Define minimum acceptable return and maximum timeline at acquisition

Treating gates as administrative exercises rather than real decisions

Consequence: Problems identified but not acted upon, gates lose credibility

Correction: Gate decisions must result in documented actions with owners and deadlines

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Test Your Knowledge

1.What is a decision gate in renovation project management?

A physical gate at the siteA predefined checkpoint where the project is evaluated before proceeding to the next phaseA type of fenceA financial threshold

2.What criteria should a go/no-go decision be based on?

Gut feelingQuality inspection results, budget status, schedule status, and risk assessmentContractor opinionWeather forecast

Key Takeaways

Decision Gates

Gate 1: Four-Gate Decision Model

Gate 2: Go/No-Go Criteria

Gate 3: Escalation and Intervention

Gate 4: Gate Documentation

Risk Mitigation Plan

Proceeding past a gate with open critical defects

Not defining kill criteria before project starts

Treating gates as administrative exercises rather than real decisions

Key Takeaways

Sources

Common Mistakes to Avoid

"Warranty Management, Decision Gates & Quality-Cost Trade-offs" is a Pro track

Test Your Knowledge

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