How project management can improve delivery and tackle inefficiency
Real Estate

How project management can improve delivery and tackle inefficiency

It’s not just India; construction is globally known to be ineffective. Reports from McKinsey, Autodesk and FMI indicate several parameters for this global inefficiency, leading to a high percentage of cost and time overruns. Only 25 per cent of global projects are completed within deadline and as few as 31 per cent are completed within budget. The deficiency in India is surely larger, on account of construction costs being among the lowest in the world.

Here are the top five reasons for this global inefficiency in construction:
1. Bad data: Leading to 16.5 per cent higher capital costs
2. Investment in technology: (-ve) 55 per cent compared to other sectors
3. Resource productivity: (-ve) 23 per cent compared to 1990
4. Subcontractor centricity: Delivers 80 per cent of construction value
5. Onsite fabrication: Contributes to over 99 per cent of the value delivered.

To add to this, material costs have been volatile, with 62 per cent of inflation (since 2000) contributed by construction and mining.

Building information modelling (BIM) is globally pegged to improve project delivery. Its implementation, however, is stunted owing to lack of widespread understanding. At Clancy Global, we have successfully implemented the BIM framework to deliver projects faster and cheaper.

Further, this article elaborates upon the four nodes that have enabled successful implementation of the BIM framework.

To read the full version, CLICK HERE.

It’s not just India; construction is globally known to be ineffective. Reports from McKinsey, Autodesk and FMI indicate several parameters for this global inefficiency, leading to a high percentage of cost and time overruns. Only 25 per cent of global projects are completed within deadline and as few as 31 per cent are completed within budget. The deficiency in India is surely larger, on account of construction costs being among the lowest in the world. Here are the top five reasons for this global inefficiency in construction: 1. Bad data: Leading to 16.5 per cent higher capital costs 2. Investment in technology: (-ve) 55 per cent compared to other sectors 3. Resource productivity: (-ve) 23 per cent compared to 1990 4. Subcontractor centricity: Delivers 80 per cent of construction value 5. Onsite fabrication: Contributes to over 99 per cent of the value delivered. To add to this, material costs have been volatile, with 62 per cent of inflation (since 2000) contributed by construction and mining. Building information modelling (BIM) is globally pegged to improve project delivery. Its implementation, however, is stunted owing to lack of widespread understanding. At Clancy Global, we have successfully implemented the BIM framework to deliver projects faster and cheaper. Further, this article elaborates upon the four nodes that have enabled successful implementation of the BIM framework.To read the full version, CLICK HERE.

Next Story
Infrastructure Transport

Railway stations in Prayagraj undergo major passenger facility expansion

The Railway Board Chairman and CEO, Satish Kumar, conducted an extensive inspection on Saturday alongside the General Manager of Northern Railway and the officiating General Manager of North Central Railway. Their visit focused on various ongoing projects at multiple stations across the Northern and North Central Railway zones, with particular attention to enhancing facilities for the upcoming Maha Kumbh. During the inspection, Chairman Kumar reviewed the construction of a vital bridge over the River Ganga, specifically between Jhunsi and Prayagraj Rambagh. This bridge is expected to significa..

Next Story
Infrastructure Transport

Madurai-Thoothukudi broad gauge line works under review

The construction of the Madurai-Thoothukudi broad gauge line, which includes the crucial Melmarudur-Tiruparankundram project, is currently under careful review. This update comes from Southern Railway's assistant public information officer, J Kumarasubramanian, following an RTI inquiry made by a concerned citizen, Dayanand Krishnan. The new broad gauge line is projected to cover a total length of 143.5 km, with the initial 18 km stretch between Milavittan and Melmarudur completed and sanctioned by the Commission of Railway Safety on March 8, 2022. While substantial progress has been made on t..

Next Story
Real Estate

DLF expects Rs 26,000 cr from super luxury project in Gurugram

Realty giant DLF is projecting impressive revenue of Rs 26,000 crore from its newly unveiled super-luxury project, The Dahlias, situated in the heart of Gurugram. Ashok Tyagi, the Managing Director of DLF, shared these insights during a recent conference call with market analysts, highlighting the project's potential amidst rising demand for high-end residential properties. The Dahlias project spans an expansive 17 acres and is set to feature approximately 420 ultra-luxury apartments, each boasting a minimum size of 10,300 square feet. This ambitious development has already garnered significan..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000