Billions wasted on infrastructure projects due to bad planning, according to global report

February 08, 2017

undefinedAccording to a global report released today, billions of dollars are wasted on infrastructure projects because of bad planning, bureaucracy and the failure to retain good staff.

The US-based Project Management Institute (PMI) found that Australia fared worse than the global average, with $108 million wasted for every billion dollars spent on infrastructure.

India has the lowest waste of $73 million for every billion dollars, followed by China and the Middle East, with $82 million wasted per billion.

The PMI research found that Europe has the worst waste management, with $131 million lost for every billion dollars invested.

Globally, the PMI study said that organisations wasted an average of $97 million out of every billion dollars invested, according to the responses of 187 project managers surveyed.

However, the outcome showed that for the first time in five years, more projects are being completed more efficiently, with waste down by 20%.

PMI Chief Executive Mark Langley was quoted as saying that a failure to retain good project staff was a key contributor to waste.

"Champion organisations do this very well. One of the key things that they do, that a high-waste country like Australia lags in, is paying attention to retaining good staff," he added.

 

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