Menu

Global construction projects are facing mounting financial pressure as uncertainty adds an average of 12.4% to project pipeline costs worldwide, according to new research by project management and advisory firm Currie & Brown.

The firm's latest Construction Certainty Index, which surveyed more than 1,300 construction and infrastructure decision-makers across the Americas, Europe and Asia-Pacific, estimates that the additional costs could amount to almost $2 trillion when applied to projected global construction spending in 2026.

The report highlights a sharp decline in confidence across the industry. Fewer than half of the organisations surveyed, 46%, said they were confident of meeting project deadlines, while only 40% believed they could keep projects within budget. These figures represent declines of 12 and 14 percentage points, respectively, compared with the previous year.

Rising material costs emerged as the most significant challenge to project delivery, with 70% of respondents reporting a high impact. Energy price volatility followed at 64%, while supply chain disruptions affected 59% of organisations. Many industry leaders expect these risks to intensify in the coming years.

The impact of uncertainty is already being felt across the sector. Survey respondents said that, on average, 30% of projects were delayed over the past year, while 27% were scaled back in scope. In addition, nearly one-third, or 31%, of potential projects failed to move beyond the planning stage due to prevailing uncertainties.

Commenting on the findings, Currie & Brown Group Chief Executive Officer, Alan Manuel, said organisations must move beyond a reactive approach to crises and instead build resilience through investment in people, technology and data-driven decision-making.

“Organisations can't afford to lurch from one crisis to the next or simply wait for calmer conditions,” he said. “Those that are resilient to uncertainty share common characteristics. They're investing in the people, technology and data that enable them to gain an earlier, clearer view of where they are exposed, and the judgement and skills they need to take action.”

The study identified a group of so-called “higher-maturity” organisations, representing 32% of respondents, that are outperforming their peers by investing strategically in artificial intelligence, digital technologies, data analytics, sustainability, workforce skills and training.

These organisations reported significantly higher confidence levels, with 58% expecting to meet project deadlines, compared with 41% among other respondents. They also experienced fewer severe disruptions linked to uncertainty.

According to Currie & Brown, the findings underscore the growing need for construction and infrastructure organisations to strengthen resilience and improve risk management as they navigate an increasingly volatile operating environment.

The report, titled Delivering Through Disruption: Currie & Brown Construction Certainty Index, examines the key drivers of uncertainty in the sector and outlines strategies organisations can adopt to improve project certainty and long-term performance.