Operators benefited from the trend of outsourcing project management functions.
New York, NY (PRWEB) July 26, 2014
The Construction Project Management Services industry is composed of companies that provide construction management services on an at-risk or fee basis. Industry operators that provide services on an at-risk basis typically set a guaranteed maximum price and subsequently assume financial and legal risk for any incurred costs. Meanwhile, firms that offer project management on a fee basis assume no additional risk for fluctuating material prices, unexpected expenses and scheduling issues.
According to IBISWorld Industry Analyst Jeremy Edwards, “Fee-based construction managers experienced better conditions immediately following the recession due to their ability to widen their range of services and engage in stronger price competition. However, rising corporate profit and improving business sentiment caused the value of nonresidential construction to spike. As a result, industry clients were willing to pay for additional types of service, which increased demand for the industry's at-risk firms. These companies are more likely to be active throughout the entire design and construction process, which typically leads to fewer delays in scheduling. Stronger residential construction has also helped the industry expand; over the five years to 2014, Construction Project Management Services industry revenue is forecast to grow an annualized 0.8% to $141.7 billion as it recovers from the depths of the recession. Revenue growth is expected to be relatively strong in 2014 with a 7.1% increase as a result of low interest rates and improving investment in new facilities.
“Over the next five years, the industry is forecast to experience more consistent conditions due to a recovering US economy and generally improving demand for construction,” says Edwards. Expanding corporate profit will precipitate rising private nonresidential construction, which the industry is reliant upon due to the large scope of these construction projects. Additionally, residential construction, particularly apartment and condominium construction, will improve, creating renewed demand for property managers from the residential market. Industry operators are expected to generate less revenue from the public sector due to austerity measures; however, private-public partnerships will become more common to enable new infrastructure construction.
For more information, visit IBISWorld’s Construction Project Management Services in the US industry report page.
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IBISWorld industry Report Key Topics
The Construction Project Management Services industry includes companies that provide planning, supervising and budgeting services to construction projects. This includes all aspects of clients' projects, including estimating, scheduling, designing, engineering and contracting. Industry operators may also oversee community relations, safety programs, labor, cost control and coordination with the owner and other construction specialists.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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