According to one of the leading statistics companies on the internet, time delay, achieving productivities, and weather account for 60% of the root causes for cost overruns in construction projects worldwide. Data is based on a survey among leaders in the construction industry and built environment, across a broad spectrum of market sectors including general building, transportation, petroleum, power, industrial, manufacturing, sewer and waste, water, hazardous waste, and many others.

Changes in schedules are the single greatest risk in construction.

Further, changes in schedules are the single greatest risk for both private and public construction projects, as reported by McGraw-Hill based on survey respondents and industry experts in construction management and risk management; 44% in private construction projects and 49% in public construction projects. Changes in schedules include a loss of productivity due labor slowdowns and site shutdowns as a result of adverse weather and weather events, such as precipitation, wind and lightning.

14% – 25% identify leading risks of not meeting owner and client expectations.

In turn, delays in meeting schedule milestones, substantial completion, owner handover, and facility operation cause contractors to not meet owner and client expectations. In the same study, McGraw-Hill reported that 14% to 25% of survey respondents in construction management and risk management identified “not meeting owner and client expectations” as one of the largest risks for both public and private construction projects; 14% on public construction projects and 25% on private construction projects.

Top 20 risks to businesses: climate change and weather volatility

Of the leading risks to global businesses, including organizations in the construction industry and built environment, climate change and the ever-increasing volatility of weather was identified by business and risk consultants as one of the top 20 leading risks both for small and medium-size enterprises and for large enterprises. Further, in a global survey by the World Economic Forum, more than one-quarter of respondents identified extreme weather events as a “leading global risk of the highest concern.”

Technologies to reduce costs by $400 – $950 billion in construction

In a global study and survey by The Boston Consulting Group and IHS Markit, digital technologies, such as weather decision support solutions and the Industrial Internet-of-Things (IIoT), hold the potential to cause quantum leaps in cost reductions in the nonresidential engineering and construction (E&C) sector by 2025: USD $400 billion in the ongoing operations and maintenance (O&M) phases, and USD $950 billion in design, engineering and construction phases of the asset and facility lifecycle.

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