"As engineering and construction projects get bigger, the complexity grows exponentially," says Geno Armstrong, Global Chair, Engineering & Construction and a principal with KPMG in the US. "The improvements by owners in planning and risk management have been significant, yet there is further work to be done to reduce the number of project failures, and bring more projects in on-time and on-budget."
KPMG's survey shows that owners of major capital projects are implementing more mature planning and approval processes, with 84% reporting that their company screens projects using both financial and risk analysis, and 74% of firms requiring formal project delivery and contract strategy analysis, prior to authorization.
About 44% acknowledged a struggle to attract qualified craft labour and 45% percent cited a lack of planners and project managers. Consequently, the majority - 69% - say their firms hire external resources equivalent to more than 5% of their total project workforce.
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