Construction Industry has been contributing significantly to the growth of the economy in different countries. Unfortunately the construction industry in general is in great trouble, and faces mammoth challenges. In the next 5+ years, construction will experience a global boost and the present expertise, competencies and skill are bound to fall short, in this emerging phase . Webpage.
- 60% of the effort being spent by workers on site is not adding any value
- 15% – 20% of project budget is being spent on non value adding activities or inefficiencies
- More than 60% of projects are challenged or failed
- Cash flow challenges and project delays are routine
- Customer dissatisfaction due to delays and inferior quality work is increasing
For example, for a $100 MUSD project, following are the inefficiencies and implications, which are alarming (details in the following table are only for an illustrative purpose and actual values vary from project to project and organization to organization)
Unless the following problems are addressed in a very systematic manner, it would be very difficult to execute the construction projects faster, better, cheaper and steadier.
While it is true that for many decades, project management methods have been adopted and implemented in construction projects, the problems too have been persistent and growing, with no significant improvements observed till now. Repeating past mistakes and expecting new or better results is far from being realistic or practical!
There is a pressing need to challenge and change current project management methodologies and bring in a new management philosophy to execute the construction projects better today, for a better tomorrow.