Survey: Impact of "Mega-Disrupters" Costing Global Construction Industry Billions on Capital Projects

HKA has released the Seventh Annual CRUX Insight Report, Changing the Narrative, revealing the scale of disruption and financial damage done to engineering and construction projects globally and the five "mega-disrupters" endemic to the industry that each affect almost half of all projects worldwide.

Key findings from the latest CRUX analysis include:

• 2,002 projects across 107 countries analyzed with a total value of $2.254 trillion.
• Disputed costs averaged $83.1 million – just under a third (33.2%) of capital expenditure
• Time overruns would add almost 16 months or two-thirds (66.5%) to a typical schedule
• The total value of sums in dispute on the projects analyzed was $84.44 billion, while the cumulative length of time extensions was close to a millennium (994 years).
• Five "mega-disrupters" – claims and disputes revolving around contracts, behaviors, speed to build, skills and the environment – each affected 40-50% of the projects worldwide.

A Damaging Pattern

In the years following the global pandemic, heightened geo-political uncertainties and economic shocks have distorted the myriad pressures and challenges project stakeholders face. Yet the most prevalent causes of claims and disputes are recurrent, stemming from recurrent and deep-rooted, underlying failures – a damaging pattern the capital projects and infrastructure sector needs to break.