What do you say about a year in which the world economy rebounded nicely from the first COVID-19 pandemic shocks but then saw the price of some steel products double in the 12 months from July 2020 to July 2021? Under those conditions, how do you assess a project schedule and price your work?
The construction industry's kaleidoscopic risk picture approaching 2022 includes supply-chain volatility, potential new spikes in material costs, workforce shortages and the heightened focus on sustainability and equity. Cost-cutting strategies and implementation of new technologies and designs may further accelerate risks, says Yann Dreyer, a group practice lead for insurer Allianz, in a recent company report. Also add in volatility introduced by jittery financial markets and political conflict, and you have an unprecedented number of variables.