Construction Owners Report Project Disruptions Are Impacting Industry

RALEIGH, N.C. (December 17, 2012) – FMI, the largest provider of management consulting and investment banking to the engineering and construction industry, announces the release of its annual CURT Owners Survey. The report is based on surveying 45 member of the Construction Users Roundtable (CURT). CURT provides a national and international forum for the exchange of information, views, practices and policies of construction users from an array of industries and represents nearly $200 billion in capital and maintenance spending power. The 2012 survey reports that project disruptions, in the form of delays, cancellations and funding challenges, are having a significant impact on owners’ capital programs with 83 percent reporting project delays, 41 percent reporting project cancelations and 93 percent reporting the need to use self-funding for projects.

How capital program owners respond to both the current and future environment will significantly influence their ability to effectively plan, design, procure and manage capital projects. Based on survey responses, many capital-program owners have already begun the process of identifying future challenges and mitigating the impact. However, more than half are not confident in their responses to date.

The survey addresses:
•    Identifying future issues that may impact capital programs and the degree of preparedness to address those issues
•    The level of staffing changes during the past four years and anticipated staffing trends going forward
•    The degree of project disruptions affecting capital programs
•    The continued evolution of project delivery systems and procurement methods
Traditional design/bid/build re¬mains the most commonly selected delivery method. However, as project size increases, the use of other project delivery methods increases significantly.

FMI is the largest provider of management consulting, investment banking and research to the engineering and construction industry. We work in all segments of the industry providing clients with value-added business solutions, including:
•    Strategy Development
•    Market Research and Business Development
•    Leadership and Talent Development
•    Project and Process Improvement
•    Mergers, Acquisitions and Financial Consulting
•    Compensation Data and Consulting

Founded by Dr. Emol A. Fails in 1953, FMI has professionals in offices across the U.S. FMI delivers innovative, customized solutions to contractors; construction materials producers, manufacturers and suppliers of building materials and equipment, owners and developers, engineers and architects, utilities, and construction industry trade associations. FMI is an advisor you can count on to build and maintain a successful business, from your leadership to your site managers.

An autonomous, not-for-profit organization, CURT strives to produce meaningful changes within the construction industry—promoting overall cost effectiveness; improving the way construction is planned, managed, justified and executed. Additionally, CURT works toward changing and improving what Owners allow, require and accept responsibility for on their global construction projects. Representing nearly $200 billion in capital and maintenance spending power, CURT is the premiere Owners’ organization and is recognized as a driving force behind continuous and significant improvement throughout the construction industry.