Report reveals global construction faces rising costs and inefficiencies amid digital lag

Although some firms have successfully implemented new technologies, overall adoption remains limited, says the report (Photo: AdobeStock)

While investment in infrastructure, data centres, and public sector projects continues to rise, issues such as inefficiencies, budget overruns and rework persist - often linked to outdated practices and fragmented technologies.

The Bridging the Gap: 2025 Digital Design & Construction Report highlights that 92% of AECO professionals globally report budget changes during construction, despite the inclusion of contingency allocations. Among these, 42% of respondents in the US and 51% in the UK noted cost increases of 11–20% above original estimates.

With governments in the UK and US investing heavily in infrastructure, the growing complexity and scale of projects are said to be contributing to increased risk for design and construction firms.

The report identifies infrastructure as the leading growth area for 41% of global industry leaders. However, 56% cite change orders, client revisions, and scope changes as key contributors to rework costs, followed by unforeseen site conditions (53%) and design errors (45%).

Although some firms have successfully implemented new technologies, overall adoption remains limited, says the report. While 63% of AECO professionals are monitoring developments in artificial intelligence and automation, technology integration continues to pose a major challenge. Approximately 27% of teams still rely on legacy tools such as email, spreadsheets, and static documents for project management.

With global construction expenditure forecast to reach US$22 trillion by 2040, the report points to a substantial opportunity for digital transformation. Despite widespread recognition of the gap between current operations and future ambitions, many in the sector are still seeking effective strategies to implement change at scale.

Arman Gukasyan, founder and CEO of Revizto, said, “The construction sector is at a pivotal moment. With governments investing billions in infrastructure and the global market projected to reach US$22 trillion by 2040, the opportunity is immense – but so is the risk. Our research shows that outdated practices and fragmented project delivery are costing the industry and public billions, underscoring the urgent need for smarter, more collaborative ways of working to help reduce waste and reworks on essential and complex projects.”

Read the full report here.