World leaders invest billions in infrastructure post-pandemic
When the world gets tough, the tough get into construction and infrastructure. This time tested exercise in economic mobilisation is once again in full swing around the world – not least as President Biden’s administration puts together a multi-trillion-dollar package to boost the economy, beginning with a giant infrastructure plan.
Infrastructure investment in America
Described as a ‘once-in-a generation’ investment plan, called the American Jobs Plan, intends to rebuild 20,000 miles of roads and highways and repair the 10 most economically significant bridges in the country. It also includes a vast list of other projects that Biden has said will confront the climate crisis, curb wealth inequality as well as strengthen US competitiveness. It’s part of his campaign pledge to “rebuild the backbone of America”.
The UK’s plans to build back better
Mr Biden is not the only one committing to commitments in construction however, as part of plans to build back post pandemic. In his budget last month, chancellor Rishi Sunak vowed to boost investment in infrastructure by injecting £126m of new funding for 40,000 traineeships to build back better, greener and more efficiently.
The chancellor has his own “once in a generation investment”, committed to massive spending on roads, railways and fibre broadband. Sunak has said that plans for next year are £27billion higher than for last year in real terms, and over the next four years government spending on infrastructure will rise to £600billion.
Infrastructure and construction are key to economic recovery
The message is clear, and one we all know to make sense: if you want to stimulate the economy, you need to invest in long-term assets over short-term spend with a view to creating value, generating jobs and literally building revenue streams for different sectors both now and moving forward. It is a time to call for expertise, skills and materials – a literal mobilisation of a country and its resources.
Those of us in the construction industry know that in turn this does lead to claims. That’s not because things are generally managed poorly, but because projects of this scale have an enormous number of moving parts and inevitable changes along the way. It’s time to look forward, and it seems that world leaders are thinking exactly the same.
If you are embarking on a construction project and would like to speak to a management consultant on best practice project management and claims resolution. Or if you have existing claims notices that have been issued, contact our team any time for discreet advice.