Uncertainty has added an average 12.4% to construction project pipeline costs globally over the past year. Applied to forecast global construction spending, that equates to almost $2 trillion in 2026, according to Currie & Brown, a world-leading project management, cost management and advisory services firm.
The findings come from its annual Construction Certainty Index, based on a survey of more than 1,300 construction and infrastructure decision-makers across the Americas, Europe and Asia-Pacific.
Confidence has fallen in meeting every project target. Fewer than half of organisations (46%) are now confident they can meet deadlines. Only 40% are confident about staying within budget – falls of 12 and 14 percentage points respectively from last year, it stated.
Currie & Brown in its report stated that material cost inflation has a high impact on project delivery for 70% of respondents, followed by energy price volatility (64%) and supply chain disruption (59%). Organisations expect most risks to intensify further.
The consequences are already visible. On average, respondents report that 30% of projects have been delayed over the past year and 27% descoped. A further 31% of potential projects have not started or progressed beyond planning because of uncertainty.
Dr Alan Manuel, Group Chief Executive Officer at Currie & Brown, said: "Organisations can't afford to lurch from one crisis to the next or simply wait for calmer conditions. Those that are resilient to uncertainty share common characteristics. They're investing in the people, technology and data that enable them to gain an earlier, clearer view of where they are exposed – and the judgement and skills they need to take action."
The research identifies a distinct group of 'higher-maturity' organisations that follow this approach. Representing 32% of respondents, they invest strategically in AI, digital technology, data analytics, sustainability, skills and training.
These organisations are considerably more confident of meeting their targets. Almost six in ten (58%) are confident they will meet project deadlines, compared with 41% of the rest of the sample. They also experience fewer severe impacts from uncertainty, it added.-TradeArabia News Service
