Most respondents see a link between incentives and cost escalation

% of survey respondents (by role) who say current incentive structures are at least somewhat correlated with excessive cost escalation

Owners’ representatives & program managers
90
Cost consultants
88
Designers
80
Builders (GCs/CMs)
100
Negotiated trade contractors
100

Among those who see a correlation, 50% of builders and 40% of negotiated trades say the correlation is strong.

Note: Percentages are based on respondents in each role who offered an opinion.

Source: State of Construction Survey (n = 12)

A value-based compensation framework is expected to boost IC and automation

% of respondents who say a data-derived, value-based compensation model would significantly influence the following

Industrialized construction (IC)
Designers, builders, and IC providers
≥90
Owners’ representatives & program managers
70
Automation in planning & preconstruction
All parties overall
100
Owners’ representatives & program managers (at least moderate pressure)
50

Note: Respondents were asked how a value-based compensation framework would affect adoption of industrialized construction and automation.

Source: State of Construction Survey (n = 12)

Broad willingness to pilot a rewired contract, with builders and owners’ reps seen as most enthusiastic

% of respondents who say participants would be willing to pilot, and who would embrace it enthusiastically (“many” in each role)

Willing to pilot (all roles)

≥90% of respondents believe participants in every role would be willing to try a rewired, value-aligned contracting approach.

Who many expect to embrace it enthusiastically (“many”) by role
Owners’ reps & program managers
50
Designers
25
Builders (GCs/CMs)
40
Design-builders
25

Note: “Enthusiastically” refers to respondents who selected “many” in each role as likely to embrace the new contracting approach.

Source: State of Construction Survey (n = 12)

Builders and owners’ reps are seen as most enthusiastic about a rewired contract

% of respondents who say many in each role would embrace a value-aligned contracting approach

0% 25% 50% 75% 100%
Owners’ reps & program managers
50
Designers
25
Builders (GCs/CMs)
40
Design-builders
25

Note: Values are based on respondents who selected “many” in each role as likely to embrace the new approach. Those who did not offer an opinion are not shown.

Source: State of Construction Survey (n = 12)

Nearly everyone is willing to pilot, but fewer are expected to be enthusiastic

Overall willingness vs. anticipated enthusiastic adoption of a rewired contracting approach

≥90% willing to pilot
enthusiastic (e.g., 40% builders)
Participants willing to pilot
Share expected to be enthusiastic

Note: Participants include owners’ representatives, designers, builders, design-builders and trade contractors. Willingness to pilot is estimated at ≥90% across roles; “enthusiastic” refers to respondents who chose “many” in each role.

Source: State of Construction Survey (n = 12)

Many recognize misaligned incentives, fewer expect their role to embrace change

% of respondents who see a correlation between incentives and cost escalation, and who say many in each role would embrace a rewired, value-aligned contract

See correlation with cost escalation
Expect “many” in this role to be enthusiastic
0% 25% 50% 75% 100%
Owners’ reps &
program managers
90
50
Designers
80
25
Builders (GCs/CMs)
100
40

Note: “See correlation” reflects respondents in each role who said current incentive structures are at least somewhat correlated with excessive cost escalation. “Enthusiastic” reflects respondents who said many in that role would embrace a rewired, value-aligned contracting approach. Differences shown in the GAP column are simple percentage-point gaps between the two.

Source: State of Construction Survey (n = 12)

Many recognize misaligned incentives, fewer expect their role to embrace change

% of respondents who see a correlation between incentives and cost escalation, and who say many in each role would embrace a rewired, value-aligned contract

See correlation with cost escalation
Expect “many” in this role to be enthusiastic
0%25%50%75%100%
GAP
(see problem vs.
expect enthusiasm)
Owners’ reps &
program managers
90
22
Owners’ reps +68
Designers
80
11
Designers +69
Builders (GCs/CMs)
100
33
Builders +67

Note: “See correlation” reflects respondents in each role who said current incentive structures are at least somewhat correlated with excessive cost escalation. “Enthusiastic” reflects respondents who chose “Many (Enthusiastically)” for that role, excluding “No opinion.” Gaps are percentage-point differences between the two measures.

Source: State of Construction Survey (n = 12)