Posted By:Infra Bazaar
Global consulting firm, KPMG, in its survey stated that as much as eighty percent of the Indian construction companies were hit by an underperforming construction project in the last fiscal year. As per the company’s survey report on global construction, the main reason for the underperformance of the projects is contractors’ poor performance and delays in the project schedules.
The report also stated that the underperforming projects of the construction companies didn’t just hurt the companies in terms of costs, but also In terms of regulatory compliance and reputation.
Project delays are the result of delays in approvals and clearances at various government levels. Though the delays in the clearances differ from each state, the situation is more or less the same in all the states of the country.
The report also emphasized on the lack of trust factor between the project owners and the contractors. As per the report, only 18 percent of entire project owners said to have trust on their contractors.
Neeraj Bansal, Head of Real Estate and Construction at KPMG has called for simplification of clearance procedures.
And, on a global scale, more than fifty percent of the construction companies faced one or more underperforming project in the last year.
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