KPMG Report on Reviving Construction Sector in India
Published on : Friday 17-04-2020
KPMG in India recommends the next steps to help make informed decisions and manage projects effectively, post COVID-19.
KPMG in India has released a report titled “Reviving the construction sector in India post COVID-19”. The report examines real, live projects to outline the impact of the crisis on the construction sector in terms of Project status, Capital expenditure, Labour deployment, Labour status, Supply chain status, Contractual impact, Schedule impact and Cost impact. Unlike sectors like financial services, retail, manufacturing or IT, construction engineering sector requires physical presence of a large workforce – both skilled and unskilled – in concentrated circles. There are, generally, low levels of technology integration in such projects, which fall even lower in government and public sector projects, say a note about the report.
Key highlights include:
- Total projects worth more than Rs 59,000 billion are under development, most of which would have been impacted severely by COVID-19
- India’s goal of becoming a USD5 trillion economy rests on the construction of critical infrastructure under the National Infrastructure Plan
- The Indian construction sector employs over 49 million people, close to 12 per cent of the nation’s working population. Further, it has a multiplier effect on nearly 250 allied industries.
Construction activity slows down in most parts of the country during the monsoon and hence the period between March and June is considered ideal for construction productivity.
The report outlines four steps with the crucial posers:
- Prioritise projects – How to prioritise projects?
- Revisit project definition and delivery strategy – How to make them viable again?
- Build resilience – How to safeguard from future emergencies?
- Strengthen contractual provisions – How to continue to build and avoid litigations?
The report brief: https://home.kpmg/content/dam/kpmg/in/pdf/2020/04/reviving-the-construction-sector-post-covid-19.pdf
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