#USA #London #project management #construction costs #Currie Brown

Study Highlights

Overview of Rising Costs

According to a recent analysis by Currie & Brown, the global construction industry is facing unprecedented challenges adding an average of 12.4% to project costs over the past year. This increase translates to approximately $2 trillion in 2026 alone, driven by various factors affecting project execution globally.

The Construction Certainty Index

The findings derive from the Construction Certainty Index, an extensive examination based on surveys conducted with over 1,300 construction decision-makers across America, Europe, and the Asia-Pacific region. The ongoing uncertainty has caused a decline in confidence among firms, with fewer than half (46%) expressing trust in meeting project deadlines and only 40% feeling secure about sticking to their budgets. Alarmingly, these figures represent a dip of 12 and 14 percentage points, respectively, compared to the previous year.

Key Influencing Factors

A key concern revealed in the study is the rising costs of materials, which significantly affect project completion for 70% of respondents. Other considerable concerns include energy price volatility (64%) and supply chain disruptions (59%). Notably, most organizations anticipate a worsening of these risks, indicating a challenging road ahead.

Project Delays and Reassessments

The repercussions of these uncertainties have already manifested, with respondents indicating that, on average, 30% of their projects have experienced delays, while 27% faced reduced scopes. Moreover, 31% of planned projects either did not commence or stalled during the planning phase due to escalating uncertainties.

Adaptation and Resilience

Alan Manuel, CEO of Currie & Brown, emphasizes that organizations cannot afford to simply weather one crisis after another or wait for conditions to improve. Those that thrive amid uncertainty tend to share certain characteristics: they invest strategically in their teams, technology, and data analytics to identify risks sooner and more accurately. Furthermore, they prioritize developing the skills and discernment necessary to act effectively.

Distinct Approaches of High-Maturity Firms

The study identifies a subset of companies exhibiting higher maturity levels that adopt these strategies, accounting for 32% of respondents. These organizations actively invest in artificial intelligence, digital technologies, data analytics, sustainability initiatives, workforce development, and training.

As a result, they express greater confidence in achieving their project objectives. Nearly 58% believe they can meet project timelines compared to just 41% in the broader sample. Additionally, these companies face fewer severe impacts from uncertainty, highlighting the benefits of their proactive approaches.

Conclusion

Currie & Brown's Construction Certainty Index explores not just the causes of uncertainty but also its effects and the strategies available to organizations striving to bolster their resilience. As global construction costs escalate, adapting to these changing dynamics may soon become crucial for survival in the industry.

About Currie & Brown

Currie & Brown is a global leader in project management, cost management, and consultancy services, dedicated to helping clients ensure project delivery with confidence across all sectors and stages of the project lifecycle.