Majority Of Construction Projects Late And Over Budget

Most construction projects are delivered late (77 per cent) and significantly over budget (75 per cent) compared to their original plan, says a survey by IDC with Procore Technologies, Inc. On average, projects were 70 days late compared to their original estimates, had an average of six changes to the budget, and five changes made to the schedule. This led to a 15 per cent average increase in project costs as a result. “Trade and labour is part and parcel of estimating project timelines and viability, so when there’s a labour shortage, it impacts costs. And the longer it takes to finish a project, the more your costs escalate. For companies without proper processes in place, these problems are only going to be exacerbated,” says Warren Shiau, research vice-president at IDC, an intelligence market firm.