@Risk

Even though bottom-line and performance risks are regarded as the most serious threats facing the construction industry, few construction firms use formal risk mitigation procedures, according to McGraw-Hill Construction’s latest SmartMarket Report.

As the report points out, the complexity of today’s construction projects creates greater risks for inefficiencies than those faced by other industries. For example, participants in the study revealed that:

• Firms experience delays on nearly one-quarter (24 percent) of  their projects.
• 19 percent of projects go over budget, and the overrun averages 14 percent of the total project cost.
• 11 percent of projects experience disputes, with an average claim of more than $3 million.

Addressing risks like these early can help firms achieve significant cost benefits, and the report suggests that construction firms begin to focus on: (more…)

Has the construction industry weathered the global economic crisis?

Recent research suggests that it has. In fact, almost two-thirds (64 percent) of construction industry executives expect to either increase or at least maintain their firms’ profit levels by mid-2010, according to the Global Construction Survey 2009 by KPMG.

The 32-page report, Navigating the storm; Charting a path to recovery, was compiled based on face-to-face interviews in mid-2009 with 108 senior leaders from top engineering and construction companies in 30 different countries. Taken as a whole, the results reveal a surprisingly optimistic outlook for the new year, and they also uncover an interesting new trend: (more…)