Report Identifies Delays as Largest Risk in Healthcare Construction Projects

A new report by McGraw-Hill Construction, sponsored by Navigant and Pepper Hamilton LLP, outlines a few of the biggest risks related to construction projects, with delays topping the list.
The report, which analyzed the entire construction industry, including healthcare projects, identified the following significant risks:

•    Schedule and scope creep. Twenty-four percent of projects are delayed.
•    Budget and cost overruns. Nineteen percent go over budget.
•    Project process approvals, safety and site conditions.
•    Disputes. Eleven percent of their projects get embroiled in disputes, with the average claim of $3 million, according to industry estimates

Despite the cost benefits mitigating, less than 25 percent of firms use formal mitigation procedures according to the report.

Related Articles on Healthcare Construction:

One-Third of Hospitals Have Active Construction Projects in the Pipeline
Survey: 67% of Hospitals Undergoing Construction

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