July 25, 2005—Construction firms believe that managing risk is the greatest challenge they face, closely followed by skills shortages and securing forward workload, according to a survey released recently by KPMG LLP.
KPMGs Global Construction Survey 2005 questioned senior executives from the worlds largest construction contractors. The results of the study found that managing contracting risk and pricing it properly is one of the key challenges currently facing the industry, with 63 percent of respondents citing it as the greatest issue.
However, 70 percent of those questioned believe their framework for managing risk during a project life cycle is either advanced or sophisticated.
Despite the importance placed on risk control and the sophistication of the frameworks already in place, only a quarter of firms said that they would never over-ride their key risk management policies in order to secure a contract—which means 75 percent would essentially be willing to take calculated risks in order to win a high margin project.
For more information, visit the Web site of KPMG.
