KPMG Survey finds 31% of projects finish within budget, 25% on time
Over half of construction project owners experienced underperforming projects in the previous year, despite confidence in project planning and controls, according to KPMG’s 2015 Global Construction Project Owner’s Survey: Climbing the Curve.
Further, project owners said only 31% of their projects came within 10% of budget, and just 25% within 10% of original deadlines, in the past three years.
“As engineering and construction projects get bigger, the complexity grows significantly,” says Jeff Shaw, Director, Infrastructure and Major Projects at KPMG. “The improvements by owners in planning, project controls and risk management have been significant, yet there is work to be done to reduce the number of project failures, and bring more projects in on-time and on-budget.
“And, it’s not just the quality of the controls,” adds Shaw, “you also need to develop the skills of those managing the projects and using the various tools. Across the board, there is a The shortage of skills in Africa is particularly acute and must be a cause for concern once the market improves.
Project owners need to invest in talent management in all project disciples in order to identify, train and retain skills.critical need for more skilled talent.”
‘Climbing the Curve’ is a KPMG International survey conducted in late 2014 through face-to-face interviews with 109 senior leaders – many of them Chief Executive Officers – from organisations carrying out significant capital construction projects worldwide.
More information from Jeff Shaw Email: email@example.com Mobile: +27 (0) 82 882 2658