More and more, owners and developers are forgoing separate construction projects in favor of a mass collection of projects. These megaprojects are typically valued at over $1 billion and take an incredible amount of time, resources, and labor to complete. A single megaproject can impact the lives of millions of people.
With complex projects, there comes complex challenges. Below, a Hillsborough County construction lawyer discusses the rise of megaprojects and the unique problems they present the construction companies that work on them. When work begins on one of these risky, lucrative projects, will your company be in the best position to profit?
By the Numbers
In a report published by FMI, it is revealed that over 320 megaprojects have been awarded since 2012. These projects are valued at over $700 billion. If that’s not impressive enough, 670 megaprojects are currently being planned with a combined value of $2 trillion. Furthermore, these projects aren’t just growing in number; they’re growing in size. The average U.S. megaproject is expected to increase from $2.1 billion to $2.9 billion — an incredible 37% increase.
One such project is set to give Downtown Tampa a $3 billion dollar makeover. Dubbed “Water Street” this development will cover 9 million square feet and feature hotels as well as retail, office, and living space. However, for megaprojects like Water Street to reach completion, they have to overcome a myriad of hurdles that cause the vast majority to go over budget.
Megaprojects have a notoriously low success rate. In fact, it’s estimated that an incredible 65 percent of megaprojects fail. The main reasons for this failure rate include inaccurate estimates, poor organization, and poor execution. It’s no wonder why; a megaproject contains all the problems of the smaller projects that comprise it under a single umbrella. In order for megaproject construction companies to succeed, they will need an ally that knows the industry inside and out.
Necessary for Our Country’s Growth
Water Street isn’t just some vanity project, it’s necessary to serve the nearly 400,000 people who live in Tampa and the 125 people who move to the area every day. Despite the challenges that construction companies face on megaprojects, they are nonetheless vital to our country’s growth. At Cotney Construction Law, our experienced team of attorneys has years of experience helping construction companies of all sizes. Before you break ground, be sure to consult the Hillsborough County construction lawyers from Cotney Construction Law
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.