n Civil Engineering = Siviele Ingenieurswese - A working model in the management of MSEW projects in southern Africa : construction and project management

Volume 21, Issue 6
  • ISSN : 1021-2000



The use of terms like project management, construction management and other related terminology has certainly been on the rise in the construction and civil engineering industries in recent years. Post-graduate and crash courses in project management are a dime a dozen and every second person's business card sports a project management title. In an ideal world and ideal industry, this would be a good indication of how engineering projects are being managed. However, experience shows that this project management trend is not yet reflected adequately in actual projects. The magazine made reference to the BizMiner industry analysis report in May 2007 which reported that, of the 850 029 contractors that were operating in 2004 in the USA, only 649 602 were still operational in 2006, only two years later. The same article stated that 36.8% of construction businesses close down within one year. The USA's census data for the period 1989-2002 showed that the average failure rate of construction industry associated businesses is almost 2% higher than the average rate for all other industries. The article pinned all of this to poor project and risk management. A KPMG report in New Zealand (2010) stated, after a survey of 100 businesses across various industries, that 70% of them had suffered a complete project failure in the previous 12 months. In 2008 IBM surveyed 1 500 companies and found that only 40% of projects met schedule, budget and quality targets.

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