According to PMI Global Construction Survey, conducted online in September, 2020, participated by 40,000 PMPs in construction industry with 5-15 years’ experience, the top 4 overall challenges faced by construction industry are:
The survey asked 40,000 PMPs working in construction industry for 5-15 years across North America, LATAM, EMEA, India, China and APAC countries.
Construction organizations waste an average of $127 million for every $1 billion spent (12.7%) on projects and programs due to poor project performance, compared to the global average of $114 million for every $1 billion spent. (Pulse-2020)
Similar results have been reported by Said School of Business; “Performance data for megaprojects speak their own language. Nine out of ten such projects have cost overruns. Overruns of up to 50 percent in real terms are common, over 50 percent not uncommon.” Cost over-run in major construction projects have run typically from 50-1900%, making it one of the most common problems in infrastructure projects.
The next major problem is ‘time delay’. “Delays are a separate problem for megaprojects and delays cause both cost overruns and benefit shortfalls. For instance, results from a study undertaken at Oxford University, based on the largest database of its kind, show that delays on dams are 44 percent on average. Thus if a dam was planned to take 10 years to execute, from the decision to build until the dam became operational, then it actually took 14.4 years on average.
