Economic Impact of Delayed Global Projects

Global construction megaprojects face significant risks of delays and cancellations, potentially costing the world over $1.5 trillion in lost economic growth by 2030, according to a Mace report. The study analyzed over 5,000 projects worldwide, revealing that 11% are at risk. Despite increased investment, delivering projects on time and within budget remains a challenge.

The number of major programs has surged by 280% since 2010, with the US leading in project numbers, followed by India, Saudi Arabia, and the UK. The Middle East is a focal point of this construction boom, particularly in Saudi Arabia, where active megaprojects have increased dramatically due to initiatives like Vision 2030.

The report highlights that traditional delivery models are insufficient, citing issues like political interference, scope changes, poor planning, and unrealistic timelines as undermining success. Experts emphasize the need for collaborative delivery, clear governance, and shared outcomes to improve project outcomes.

Collaborative approaches can reduce costs and significantly lower the risk of late delivery. With thousands of megaprojects underway globally, the report urges a shift in focus from how projects are delivered to the value they ultimately provide.