Construction sector maturity improved: KPMG
25 Oct 2015 - 0:00
DOHA: Overall maturity of the construction sector in Qatar has improved over time due to large capital spend, improving technology and exposure to international best practice through tie-ups with international contractors, said KPMG yesterday in a note.
Mihir Shah, Director and Head of Infrastructure Advisory at KPMG in Qatar believes that findings of KPMG’s Global Construction Project Owner’s Survey have very strong correlation with the construction industry in Qatar and the region at large.
“Thanks to large capital spend, improving technology and exposure to international best practice through tie-ups with international contractors, overall maturity of the construction sector in Qatar has improved over time. Whilst larger players have naturally moved positively on the maturity curve, smaller, local firms also have huge potential,” said Shah. “The step change in quality of project planning and management from local firms has been visible and increasingly, contractors are coming to us, looking for help to develop skills in project planning and risk, cost and project management. Sophisticated improvements to planning and operations are no longer limited to the construction giants and the impact at a local level is clear,” he added.
As construction projects continue to evolve, and grow larger and more complex, have organisations gained more confidence in their ability to hit schedule, budget and quality targets?, KPMG put forward this question to more than 100 private and public organisations within the sector around the world as part of its 2015 Global Construction Project Owners’ Survey.
KPMG’s global Head of Infrastructure, James Stewart, believes the survey results reflect that excellent progress has been made by project owners in planning, risk management and execution in recent years but challenges remain. “It is clear that there have been significant developments across the industry however, the survey also highlighted areas where owners are still striving to improve, namely — talent management, project management, project scheduling and contingency planning.”
According to local KPMG experts, the findings strongly correlate with the construction industry in Qatar and the wider region.
Over half of all global respondents stated that they suffered one or more underperforming projects in the previous financial year. For larger organisations, this rose to 61 percent, while executives from the energy and natural resources and public sectors experienced even higher levels of project failure, at 71 percent and 90 percent respectively.