A very telling report

There was a very telling report put out by global consultancy firm, KPMG. It has reviewed performance of projects underway and stated that over 80% of construction companies are dealing with one or more under-performing projects in FY15. And it is no rocket science to know that this has adversely affected many a companies performances due to cost escalations, delays, regulatory compliances, tarnishing their reputations.

The reason for poor project performances is also very clear - poor contractor performance and project delays. But what was pretty telling in the report is that most projects suffer from a huge trust deficit – there is a huge trust gap between owners and contractors, wherein only 18% owners claim to have a 'high level of trust' in their contractors.

If it makes one feel any better, KPMG conducted this survey on a global front and it concluded that over 50% of the construction project owners experienced one or more under-performing projects in the previous year despite confidence in project planning and controls.

Well, the bottmline, be it Indian or global, is that projects are half finished. Call it lack of will or sheer inefficiency it is a shame that we have stare hard at all this half constructed projects, coming to a standstill or working at a snails pace. The dug-up roads in Mumbai, which go on and on forever, are probably a part of this very same problem – only here, the more you dig, the more the concerned authorities make money.