83% of the Industry Experiences Claims and 98% of Mega-Projects Suffer Cost Overruns

June 15, 2017 0 Comments

Do either of these statistics bother you as a construction professional? They bother me.

The Dodge Smart Market Report reported that 83% of general contractors experienced claims in the last 5 years. McKinsey’s Construction Productivity Imperative research found that 98% of mega-projects suffered cost overruns.
The 83% is more upsetting to me for one simple reason: Cost overruns can be agreed upon by the parties, which means that good minds got together and determined that spending additional money meant that the project outcome was improved. To the contrary, 83% of participants experiencing claims means that there has been a meeting of the minds, and no agreement.
As a business, Proactive has taken on the challenge of proactively reducing both. But you tell me, which is the bigger problem to you? Let our team know in the comments below.