The $1 Trillion construction industry faces challenges, according to Barry LePatner, a construction attorney, adviser, and the author of Broken Buildings, Busted Budgets: How to Fix America’s Trillion-Dollar Construction Industry.
Barry LePatner says:
98% of all large construction projects come in at least 30% over budget and at least 6 months late, according to a recent McKinsey & Co. report
Investors, taxpayers and consumers pay for these chronic overruns (schools, hospitals, infrastructure, more)
Construction industry faces massive skilled worker shortage
Average project budget is $10M - $100M, only most owners…
Are not experienced enough to realize how quickly their own money is being wasted
Do not have the proper team to help them solve existing construction problems or avoid new ones
Fail to utilize critical technology
Needlessly assume all financing risk, putting themselves at the mercy of engineers, architects and contractors
Structural inefficiency impairs US competitiveness
Among ways for owners to fix:
Take back control of their own projects
Contractually assign appropriate financial risk to engineers, architects and contractors
Incentivize cost control
Adhere to fixed-price contracts
Transparent pricing
Create true competition
