A new report by McGraw-Hill Construction, sponsored by Navigant and Pepper Hamilton LLP, outlines a few of the biggest risks related to construction projects, with delays topping the list.
The report, which analyzed the entire construction industry, including healthcare projects, identified the following significant risks:
• Schedule and scope creep. Twenty-four percent of projects are delayed.
• Budget and cost overruns. Nineteen percent go over budget.
• Project process approvals, safety and site conditions.
• Disputes. Eleven percent of their projects get embroiled in disputes, with the average claim of $3 million, according to industry estimates
Despite the cost benefits mitigating, less than 25 percent of firms use formal mitigation procedures according to the report.
Survey: 67% of Hospitals Undergoing Construction
The report, which analyzed the entire construction industry, including healthcare projects, identified the following significant risks:
• Schedule and scope creep. Twenty-four percent of projects are delayed.
• Budget and cost overruns. Nineteen percent go over budget.
• Project process approvals, safety and site conditions.
• Disputes. Eleven percent of their projects get embroiled in disputes, with the average claim of $3 million, according to industry estimates
Despite the cost benefits mitigating, less than 25 percent of firms use formal mitigation procedures according to the report.
Related Articles on Healthcare Construction:
One-Third of Hospitals Have Active Construction Projects in the PipelineSurvey: 67% of Hospitals Undergoing Construction