The Owners Dilemma
Construction Project Delivery is BROKEN
"All too frequently, construction projects of all sizes and types are plagued by massive cost increases that were totally unanticipated at the outset of the work. We have become almost immune to the fact that most construction in this nation will result in serious cost overruns and schedule delays"
Barry B. LePatner
Broken Buildings, Busted Budgets
It is no surprise that the construction industry is volatile, but the actual statistics are staggering.
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U.S. Construction spending was upwards of $2 trillion in December of 2023 (U.S. Census Bureau)
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Construction projects are typically completed 80% over budget and take 20% longer than scheduled (McKinsey & Company)
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The vast majority of construction projects-85% or more- experience a cost overrun (Propeller Aero)
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Nationwide construction projects exceed their budgets by 16% (Propeller Aero)
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98% of Mega Projects face delays and budget overruns (Sagar Joshi - G2)
The Reward
There is no doubt that the population is expanding. U.S. Census Data estimates a 5% population increase year-over-year, and it is estimated that the construction industry will need to produce 13,000 buildings per day to keep up with world population growth.
All of these people will need housing, places to work, and recreational places to go.
A Changing Industry
With over 8 million employees and nearly $2.1 Trillion worth of structures each year it is no surprise that construction makes up roughly 4.3% of the U.S. Gross Domestic Product (GDP).
These numbers attract investigation and scrutiny, so it is no surprise that owners, professionals, and consumers are demanding more transparency and higher standards.
Environmental, economic, and equitable sustainability are driving the industry to find more efficient ways to produce materials, pre-manufacture components, and deliver projects.
Processes like LEAN Construction, Progressive Design-Build, and Ohno Circle have arisen to combat productivity and material waste but are often seen as adding complexity without much reward.
Fundamental Breakdowns
Productivity in product manufacturing has doubled since 1994, while construction productivity is 40% lower.
It seems impossible that the things we put in buildings are getting better, but installing them is getting worse. How can this be possible?
The only person tied to the projects results is the owner, everyone else gets paid and leaves without much concern of how the building performs.
The only thing driving design and construction teams to produce work faster or more effectively is the opportunity cost when the fee or profit have run out.
This reduces accountability across the board from design teams and permitting jurisdictions to construction management and subcontractor teams
