Identifying the Global Performance of the Construction Industry

Identifying the Global Performance of the Construction Industry

By Alfredo Rivera, Nguyen Le, Jacob Kashiwagi, Dean Kashiwagi

October 2016

This paper presents a literature research assessing the performance and issues of delivering construction services worldwide, by exploring reasons for delays and increased construction costs. The study shows a comparison of the performance of the construction industry between different continents and countries. Multiple research databases were looked through and performance information was taken from over 95 publications. The results reveal that although the construction industry is growing throughout the world, there are many of the same problems being experienced in delivering construction projects in developing countries and developed countries. The literature reveals that all countries and continents are experiencing the same issues. On average, 72% of projects are delayed with 38% increase in original contracted duration, also, 63% of projects experienced cost overruns with 24% increase in original contracted cost. Additionally, rework is also a factor that affects performance and accounts for 6% increase in total project costs. Customer satisfaction on projects is low, and 90% of all major issues causing non-performance are due to people. A best value approach was identified as a potential solution to overcome the poor performance on construction projects with the following results: tested over 1900 times, totaling over $6B of procured services, a 94% on time and 97% on budget, and 98% customer satisfaction. Key Words Construction, Worldwide, Performance, Best Value PIPS

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