Don’t Let Another Minute Go to Waste
Why Productivity Monitoring on Construction and Engineering Projects Can Save You Time, Effort and Money
It’s probably of no surprise to those employed in the construction and engineering industry that a recent survey of over 350 mega-projects in the oil and gas sector shows a high percentage of projects fail to deliver on time or meet approved budgets.
According to the same research, in the Asia Pacific region, 68% of the projects surveyed were facing cost overruns and more strikingly, 80% were facing schedule delays when measured against original estimates. The financial effect in real terms is staggering when you consider the regional value of these projects is thought to amount to some US$945 billion.
In the Asia Pacific region, cost and schedule blow-outs are not limited to the oil and gas sector either, particularly when you consider the number of mega-projects in the mining, power, civil infrastructure and public sectors (including main roads and transportation) that have more recently suffered from extensive cost overruns including delays and/or disruption.
Indeed, this is reflective of the current situation in Australia, where numerous factors — including the economic downturn in China (reducing commodity prices and therefore capital investment in major projects) and geo-political uncertainty — is affecting many a contracting organisation’s bottom line. Accordingly, such levels of overrun and associated cost blow-outs are not sustainable in the longer term.