flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Inefficient supply chains, outdated project delivery systems hamper construction investment

Codes and Standards

Inefficient supply chains, outdated project delivery systems hamper construction investment

Additional complexity makes it harder to justify, construct physical assets.


By Peter Fabris, Contributing Editor | July 8, 2022
Manufacturing Plant
Courtesy Pixabay.

Constructing and justifying the cost of physical assets such as a manufacturing plant is much more difficult than it was decades ago, according to a report by Steffen Fuchs, senior partner with McKinsey & Company.

Inflation, rigorous sustainability requirements, and rapid changes in technology and regulations all complicate investment in new construction projects, the report says. “Adding to the complexity, the next generation of assets needs to be “set and forget”: the high cost of building them must be offset by lower operating costs,” Fuchs writes.

Improvements in construction processes and project delivery are especially necessary given that a new wave of “once-in-a-lifetime” capital spending on physical assets will take place between now and 2027. Roughly $130 trillion will pour into projects to decarbonize and renew critical infrastructure, Fuchs writes.

Project leaders typically rely on practices that aim to optimize individual investments, such as a nuclear power plant, an oil refinery, or a pipeline. Cost overruns are typical and costly using this approach. New decarbonization and sustainability investments where groups of similar projects (such as wind farms and solar parks) are delivered repeatedly over a long period of time require much better performance, Fuchs says.

Related Stories

| Feb 19, 2014

USGBC introduces new online educational platform

The U.S. Green Building Council has introduced “Education @USGBC” a new educational platform.

| Feb 17, 2014

Channeling weather forecasts to building systems can yield significant energy savings

Using weather forecasts to predict outdoor temperature changes can lead to significant energy savings, exceeding 10%, researchers say.

| Feb 17, 2014

Lawmakers may take away control of Florida hospital project from the VA

The project is $100 million over budget and has missed its scheduled completion date.

| Feb 17, 2014

Business, labor at odds over toughening of OSHA silica dust rule

OSHA says the rules will protect workers and prevent 700 fatalities annually. Others say the rules would hurt businesses and jobs. 

| Feb 17, 2014

Tulsa, Okla., mulls code change to require storm shelters in new schools

State and city officials are pushing for increased bonding capacity to pay for the storm shelters.

| Feb 13, 2014

Appraisal Institute issues guidelines on evaluating green property

The Appraisal Institute and the Institute for Market Transformation have issued guidelines for training property appraisers to evaluate green buildings.

| Feb 7, 2014

New LEED Dynamic Plaque system will measure building performance

The U.S. Green Building Council recently unveiled the LEED Dynamic Plaque, which is a new system designed for benchmarking and comparing post-occupancy building performance on a global scale.

| Feb 7, 2014

Los Angeles officials struggle to deal with needed seismic retrofits

Sixteen years ago, the Los Angeles City Council decided against requiring retrofits of existing buildings because of the projected cost and the threat of losing 20,000 apartment buildings.

| Feb 7, 2014

Los Angeles officials struggle to deal with needed seismic retrofits

Sixteen years ago, the Los Angeles City Council decided against requiring retrofits of existing buildings because of the projected cost and the threat of losing 20,000 apartment buildings.

| Feb 7, 2014

EPA, Freddie Mac collaborate on energy- and water-efficient apartments

Freddie Mac will gather data on energy and water use from property owners, and encourage lenders to spend on energy-efficient investments for multifamily housing. 

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021