Why most construction and engineering projects are unsuccessful

Two thirds of large construction and engineering projects in are unsuccessful, according to a new global survey of 1,000 project owners and managers by LogiKal. The study, which surveyed client organisations, project owners, contractors and project management consultants, found that 66% of projects delivered in the past period failed to deliver “all or most” time, […]

Two thirds of large construction and engineering projects in are unsuccessful, according to a new global survey of 1,000 project owners and managers by LogiKal.

The study, which surveyed client organisations, project owners, contractors and project management consultants, found that 66% of projects delivered in the past period failed to deliver “all or most” time, cost and quality objectives.

The success rate of large construction and engineering projects is highest in Africa and North America, where over 40% of the projects were met expectations. In Asia and Oceania, the success rate is 30%, while Europe and the Middle East enjoy a slightly higher success rate.

From an industry perspective, projects in the mining sector enjoy the best delivery track record, at 48% success, moving up from 4th place in the previous edition of the study. Similarly, on the back of a 42% success rate, the government and public sector moved from 7th to 2nd place.

Projects in the aviation industry and rail transport sector are most likely to under deliver on expectations.

According to LogiKal’s study, there are a number of key success factors for capital-intensive projects. Not surprisingly, people and processes have been found to be “key to project success”. When projects have a team of highly skilled people, they are 1.8x more likely to succeed whilst projects with a high level of process compliance are 2x more successful.

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