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Over 80% construction firms have under-performing projects: KPMG

By PTI
15 April, 2015

Over 80 per cent of construction companies are grappling with one or more under-performing projects in the country, says global consultancy firm KPMG. 

According to the consultancy’s global construction report, around 82 per cent of the companies operating in construction space in India had one or more under-performing projects in 2014-15. 

Citing the reasons for the poor performance of projects, it said, “Poor contractor performance and project delays have been identified as the two prime causes for the under-performance.” 

According to the report, the under-performing projects have significantly impacted the organisations in terms of cost, delay, regulatory compliance or reputation. 

The report further said that there is also a huge trust gap between owners and contractors, adding, “with only about 18 per cent owners claiming to have a ‘high level of trust’ in their contractors.” 

“Project delays may often be introduced locally as a number of projects require clearances and permissions from various government departments. These delays vary from one state to another,” KPMG in India, Partner and Head, Real Estate and Construction, Neeraj Bansal said. 

He added: “There is also a need to simplify the approvals process, delays may not get addressed without rapid improvement in project planning, project execution and monitoring processes.” 

On the global front, the report said that over half of construction project owners experienced one or more under-performing projects in the previous year despite confidence in project planning and controls.


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Over 80% construction firms have under-performing projects: KPMG

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