Over half of construction project owners have experienced underperforming projects in the previous year despite improvements in project planning and controls, according to KPMG’s 2015 Global Construction Project Owner’s Survey: Climbing the Curve. For larger organisations, this rose to 61 per cent, while executives from the energy and natural resources and public sectors experienced even higher levels of project failure, at 71 per cent and 90 per cent respectively.
The research went onto uncover that the global construction community is facing the same skills crisis that the UK construction industry is trying to combat. It found that nearly half of the respondents are experiencing the shortages in skilled labour, with 69 per cent requiring external assistance to support existing workforce to enable delivery of projects.
The survey also found that:
Richard Threlfall, KPMG UK Head of Infrastructure, Building & Construction, said: “This survey highlights the prevailing issues affecting the sector both in the UK and globally. We will only see a turnaround of poor performing contracts once we start seeing contractors and project owners adopt technology such as building information modelling (BIM) to enable more efficient planning, mandated apprenticeships to ensure skilled labour are bought up through the ranks, and more accurate planning of projects.”
Nahidur Rahman, KPMG Press Office
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About the survey
‘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 organizations carrying out significant capital construction projects worldwide. Respondent representation was spread across the Americas (38 percent); Europe, Middle East and Africa (26 percent); and Asia Pacific (36 percent). Respondent organizations’ annual revenue varied in size from US$250 million to more than US$5 billion, with capital expenditure budgets ranging from around US$10 million to more than US$5 billion. Twenty-six percent of the respondents’ were public bodies – typically government agencies – and some of the main industries represented include energy and natural resources, technology and healthcare.
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a turnover of £1.9 billion in the year ended September 2014. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 162,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.