Owners Must Prioritize Proactive Planning as Megaprojects Increase, Warns DPR Construction

REDWOOD CITY, Calif., September 24, 2024 – DPR Construction is observing a surge in upcoming megaprojects—those exceeding $1 billion—in sectors such as advanced manufacturing, life sciences, and advanced technology, driven by legislative and technological advancements. In its latest Market Conditions Report, DPR emphasizes the need for project owners to enhance their planning efforts to mitigate the increased risks associated with these large-scale endeavors.

“The complexity, pace, risk and demand of megaprojects require a higher level of attention to planning best practices,” stated Philip Bartkowski, DPR’s preconstruction corporate service leader. “What might seem like a small issue on a smaller job can quickly scale to business-impacting cost and schedule ramifications on a megaproject. Disciplined planning that recognizes the greater risks to all project partners can lower risks and set large projects on track for success.”

Owners of large projects in the upcoming months should prioritize the following areas:

• Design and Procurement: The procurement of materials and essential equipment must influence design choices, while designs should also accommodate procurement needs. A lack of integration between these elements can heighten risks related to delays and budget overruns.
• Robust Virtual Design & Construction (VDC): Utilizing VDC effectively can help identify potential issues digitally before they arise in the field, ensuring that construction is executed safely and to high-quality standards. Rework on a megaproject can lead to substantial costs and scheduling challenges.
• Accounting for Financial Risks: Financial resources are critical for all projects. For megaprojects, having clear and aligned cash flow expectations is vital to allow all project partners to progress effectively.
• Building the Right Team: Megaprojects necessitate dedicated, often larger teams. It’s essential to select a group of leaders who can advocate for the owner, collaborate with the design team, and maintain project momentum.

DPR’s report also addresses emerging supply chain pressures and provides insights for owners to consider in response. Previous quarterly reports and an interactive market conditions dashboard are available for further exploration.