Heavy Civil Infrastructure Construction Highlights
By analyzing large heavy civil project data collected over the past 20 years, Travelers experts uncovered trends that impact project performance.
Contractors can use these insights to help optimize their procurement strategy for heavy civil construction projects, minimize their risk and help improve business results.
Travelers Heavy Civil Infrastructure Analysis
Travelers evaluated heavy civil construction project data to uncover trends that influence project performance.* These insights can help when developing a procurement strategy and making informed business decisions.
Methodology
An in-depth work in progress analysis of large North American heavy civil projects spanning two decades.**
288: North American Heavy Civil Projects
Projects greater than $250M in Value
$800M: Average Project Contract Value
Bridge, Highway, Rail/Light Rail, Tunnel, Heavy Other
Procurement type matters
Over 50% of the heavy civil construction projects studied suffered profit fade.
Of those projects that had profit fade, over 70% utilized Design-Build (DB) or Public-Private Partnership (P3) procurement methods.
Procurement type risk level
High risk: Public-Private Partnerships
Moderate risk: Design-Build
Low risk: Design-Bid-Build, Construction Manager/General Contractor
Risk Allocation and Pricing of Risk are important drivers of ultimate project performance.
Contractors were 3.7 times more likely to have a profit fade on DB and P3 projects.
Over 60% of late-stage underbillings were on DB and P3 projects.
Underbillings were disputed for an average of 4.5 years, affecting both contractors and owners.
Collaboration helps both contractors and owners
Fewer Claims, Realistic Risk Allocation, Schedule Certainty, Supports Market Stability
To learn more, contact your Travelers surety agent.
*Travelers client projects
**Conducted as of May 2024
Travelers Casualty and Surety Company of America and its property casualty affiliates. One Tower Square, Hartford, CT 06183
This information may not be reflective of every contractor’s experience. This information is not intended as, nor does it constitute,
legal or professional advice. Before taking any action based upon this information, you should contact your professional advisors.
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