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FMI has once again collaborated with AGC’s Surety Bonding and Risk Management Forum to capture contractors’ perceptions of risk and opinions on how the U.S. E&C industry will change in the coming years. Specifically, what industry sectors and trades are most likely to undergo fundamental disruption; how businesses are innovating today and the top risks they face; and ultimately, how these industry trends will impact E&C risk management in the future.
Key findings include:
- 88% of respondents had encountered risks related to shortage of craft workers and 67% had encountered risks related to the shortage of field supervisors
- 92% of respondents had found design documents to be less complete than they were in the past
- Nearly 40% of respondents planned to bring design work in-house, and of those, over 80% had either completed the process or planned to do so within the next 3 years
The study also finds that change is a growing risk, in and of itself:
- Two-thirds of respondents expect to see more change in the construction industry over the next five years than in the last 50
- Respondents predict that health care, commercial/office space and education will experience the most disruption over the next five years
- The more specific areas of disruption will include or involve concrete, curtain walls (envelope and glazing), electrical work, steel erection and mechanical and structural engineering
More specifically relating to risk management, the study finds:
- Respondents consider fee erosion and cost escalation to be the most significant of the "soft costs" of risk
- Risk management has to evolve, for many of the significant risks confronting today's contractors are not insurable
FMI
FMI
