Industry Summary Articles

In moments of complete candor, most architects, engineers, contractors, owner-operators, and other involved parties will share their frustration with the way things are commonly done in AEC. The problem is much bigger than individual frustration, however: Over the past 20 years, while manufacturing productivity in the United States (and in other countries) has roughly doubled, construction productivity has been stagnant. The problem is magnified for larger projects. According to a study by Bent Flyvbjerg of Oxford University, roughly 90% of megaprojects (i.e., projects costing more than US $1B) experience cost overruns, and it is common for those overruns to exceed the project budget by 50%.

It’s clear that the status quo is not working, but less clear why it persists. It should be in everyone’s interest to change, but alas, change appears to be an elusive goal. It takes courage to step outside of a comfort zone and drive change, especially when the “new way” of operating involves uncertainty and risk. The fragmentation of the industry makes change even more difficult, especially when the maximum benefits will result from systematic change, not individual action.

To understand the opportunities for change—and the reasons why change has not occurred— CIMdata conducted an industry survey in 2016.

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