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Connecting Owners and Contractors: How Technology Enables Connected Construction

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S M A R T M A R K E T BR IE F IMPROVING THE CONSTRUCTION PROGRESS AND PAYMENT PROCESS Challenges in the Process Frequency of Contractors Subjectively Estimating Project Progress Additional Risk Contractors Face by Subjectively Estimating Progress Owners and contractors rating the risk as medium, high or very high Never Rarely (under 25% of projects) Sometimes (26% to 50% of projects) Frequently (51-75% of projects) Very Frequently (76-99% of projects) Always (100% of projects) 5% 13% 16% 21% 18% 33% 34% 25% 25% 1% 2% 7% Contractors Owners OWNERS 25% 27% CONTRACTORS 46% 49% Medium High/Very High FREQUENCY WITH WHICH CONTRACTORS SUBJECTIVELY MEASURE PROGRESS Owners and contractors were asked to consider the degree to which contractors subjectively estimate project progress, and their answers closely align. 80% of contractors and 79% of owners believe this happens on more than 25% of projects, and around 20% believe it happens on more than three quarters. RISK RELATED TO SUBJECTIVE PROGRESS MEASUREMENT Owners and contractors also agree that this common activity increases the risks that contractors face, with over 70% believing that contractors are adding at least a moderate level of risk by subjectively estimating project progress. Large contractors (revenues $100M and over) are particularly concerned about this practice, with 41% rating the added risk as high or very high. Only 9% of small contractors (revenues less than $10M) agree. Since large contractors are leading the way on advanced practices in construction, they may be more aware of the potential for error in subjective estimation of progress, than are those still relying on that approach. Medium High/Very High © Dodge Data & Analytics w w w.construction.com Premier Par tner: e-Builder SmartMarket Brief: Connecting Owners and Contractors 13

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