Built to inform

Sign up for the daily newsletters

No, Thank you

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

Delays spanning less than a month have recorded a 12% drop between 2012 and 2018 in the Middle East.
Delays spanning less than a month have recorded a 12% drop between 2012 and 2018 in the Middle East.

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. 

READ: Middle East infra contractors face payment delays in 2018

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." 

Most popular

Awards

CW Oman Awards 2019: Nominations deadline closes tonight
The window to nominate yourself, your company, or project for the CW Oman Awards 2019

Conferences

Leaders Kuwait 2018: New Kuwait 2035 needs smart city-led contracts
Localisation and contract modernisation are essential for Kuwait's diversification strategy
Construction Week's Leaders Kuwait 2018 summit opens
Speakers from Kuwait's Supreme Council for Planning and Development and CSCEC ME are at today's

Latest Issue

Construction Week - Issue 725
Jan 19, 2019