Some 71 per cent are over budget
- 95 per cent of projects are delayed and 71 per cent are over budget
- 44 per cent are delayed by more than six months and 6 per cent are more than 50 per cent over budget
- Better management earlier in projects would mitigate core reasons for delays
More than 95 per cent of projects in the GCC are delayed and 71 per cent are over budget, says David Clifton, regional development director, Faithful+Gould.
Many projects are facing severe delays and cost overruns. About 44 per cent are delayed by more than six months and 6 per cent of projects are more than 50 per cent over budget.
There are five core reasons for the delays and ballooning costs, they are:
- design changes
- lack of project management systems
- forms of contract
- unrealistic time frames for project delivery
- financing constraints
Early engagement with project management firms can mitigate these risks.
Lets be clear. Helping clients set realistic programmes is tough. We all understand the desire to complete as soon as possible, says Clifton. The fact is you dont build an airport in one year. So be sensible. Early engagement can begin to show best practice and lessons learnt from other similar schemes.
Clifton was speaking at a professional development seminar in Riyadh on 2 June hosted by Faithful+Gould in association with the Saudi Council of Engineers that focused on how early engagement of project and programme management can help a project get delivered within budget and on time.