PwC: Fewer Middle East infra projects delayed in 2018
Instances of projects being delayed for one to six months have dropped by 9% over the past year, with delays shorter than one month reducing by 12% between 2012 and 2018
Infrastructure project delays are reducing in the Middle East, a new survey has found.
The incidence of schemes being delayed for one to six months reduced by 9% over the past year, while cases of project delays spanning longer than six months have reduced by 13%.
Delays spanning less than a month have recorded a 12% drop between 2012 and 2018.
In the contemporary construction environment, delays and cost overruns face "a constant challenge" in scope changes.
PwC Middle East's Capital Projects and Infrastructure Survey revealed that the situation appears to be improving.
Out of a base of 91 respondents, only 46% stated poorly defined scope or inadequate design as a cause of cost hikes, compared to 60% in 2016.
However, from a base of 88 respondents, 30% said their projects exceeded the budget by 10-50%.
In 2014, 25% of respondents said their projects were over budget by 10-50%, while 6% claimed their projects were more than 50% over their budget.
PwC Middle East said "the persistent problem of scope" underscores the need to improve "the skills of those commissioning major capital projects".
Its report added: "Poor and inconsistent procurement practices at national and municipal levels also contribute to cost overruns and contract variations."
Additionally, PwC Middle East recommended that public-private partnership (PPP), or a similar model, is used for tendering in terms of both capital and operating expenditure.
"PPP-style competitive tendering, underpinned with long term fixed pricing, needs to become more prevalent before governments start to control spiraling costs and manage delivery risk."