'Under-performing projects plaguing Bahrain'

Less than 10% of construction projects, and only one in 10 from the public sector, hit their deadlines in the last three years all over the GCC, KPMG experts said

Under-performing projects persist in Bahrain. [Representational image]
Under-performing projects persist in Bahrain. [Representational image]

Under-performing projects are continuing to plague the construction industry in Bahrain and the wider GCC and Middle East region, according to findings from the 2015 Global Construction Project Owners' Survery by KPMG. 

The accountancy firm's global head of infrastructure, James Stewart, said the survey results reflect that excellent progress has been made by project owners in planning, risk management and execution in recent yearsm, but challenges remain.

"It's clear that there have been significant developments across the industry," he said.

"However, the survey also highlighted areas where owners are still striving to improve, namely - talent management, project management, project scheduling and contingency planning."

Over half of all global respondents stated that they suffered one or more underperforming projects in the previous financial year.

For larger organisations, this number rose to 61%, while executives from the energy and natural resources and public sectors experienced even higher levels of project failure, at 71% and 90% respectively.

Looking back over the past three years, fewer than one-third of all respondents' projects managed to come within 10% of the planned budget, with the energy and natural resources, and especially the public sector, performing considerably worse than other industries.

In the same time period, just a quarter of construction projects came within 10% of their original deadlines; only one in ten public sector organisations managed to hit this target.

Mihir Shah, director and head of infrastructure advisory at KPMG, said: "Thanks to large capital spend, improving technology and exposure to international best practice through tie-ups with international contractors, the overall maturity of the construction sector in Bahrain has improved over time.

"Whilst larger players have naturally moved positively on the maturity curve, smaller, local firms also have huge potential.

"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," Shah continued.  

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