2
The true cost of uncertainty
What is uncertainty costing organisations globally?
Average construction project pipeline of over 1,000 respondents
Average financial loss (as value of construction project pipeline) due to uncertainty
Average financial loss due to uncertainty
Our research shows that uncertainty is having a major impact on project delivery. On average, respondents estimate they’ve lost 13.7% of their construction pipeline in the past year. That’s over $2 billion per organisation.
Enough to fund up to 40 high schools...
...and two large hospitals
What is uncertainty costing the world?
Step back, and the global picture is even more concerning. Applied to S&P Global’s forecast for 2025 construction spending ($15.6 trillion),¹ that 13.7% equates to $2.5 trillion in lost value.
$2.5 trillion
in lost value globally
More than the
GDP of Italy.²
Enough to build up to
500 new airports
Almost twice the combined annual revenue of Apple, Amazon, and Microsoft.
This is a major lost opportunity. And it’s slowing down global economic growth and infrastructure development.
of projects were descoped (scaled back)
were delayed
were cancelled entirely
How is this loss realised?
Construction projects being downsized, delayed, or cancelled altogether.
On average, our survey of over 1,000 senior decision-makers reported that:
— 32% of projects were descoped (scaled back)
— 29% were delayed
— 25% were cancelled entirely
All because of uncertainty.
What’s driving these decisions?
Uncertainty is emerging from multiple directions. Government policy shifts, regulatory bottlenecks, economic volatility, and shifting funding landscapes. All are contributing to a risk environment in which many projects simply cannot proceed as planned.
In some cases, regulation itself is slowing delivery. In the UK, for example, the Building Safety Act introduced new gateway approvals for high-risk projects. These checkpoints, designed to improve safety, are having a major knock-on effect on project timelines.
Some reviews, intended to take 12 weeks, are now taking at least double that time, sometimes up to 48 weeks.³
These rules play an important role in keeping people safe. But they also show how uncertainty grows when a regulation is rolled out unevenly or without enough support.
Why do we need to improve productivity in the construction sector?
If we want to deliver more projects, quickly and with certainty, we need to boost construction productivity.
Construction is the engine behind global development, responsible for 13% of global GDP and the infrastructure that keeps societies moving: schools, homes, hospitals, transport.⁴ It’s also the platform for digital progress, enabling data centres and networks that power modern economies.
The environmental stakes are just as high. Construction and the built environment accounts for 37% of global emissions.⁵ But that also makes the sector central to the solution. Green infrastructure, low-carbon materials, and better building standards can lead the net zero transition.
The challenge?
Demand is outpacing delivery. Global construction spending is projected to jump from $13 trillion in 2023 to $22 trillion by 2040, a leap that needs annual industry growth rates double those currently forecast for anywhere except China.⁶
We’re facing a tipping point. If the industry fails to evolve, to adopt new technologies, invest in modern methods, and work more intelligently, the cost won’t just be economic. It will stall communities, derail climate targets, and the chance to shape a more sustainable future.
Boosting construction productivity isn’t a ‘nice to have’. It’s the only way to deliver certainty where it matters most: for economies, for society, and for the planet.
3 Hackitt: ‘Industry is making a big deal of Gateway 2 delays’ | Construction Management
4 The next normal in construction | McKinsey & Company
5 Building materials and the climate: constructing a new future | UNEP - UN Environment Programme
6 Improving construction productivity is the new imperative | McKinsey & Company