Developers, contractors must stop enmity: study

Singapore

ASSET owners and construction companies need to stop being enemies and start working together, a McKinsey & Company study says.

The study found that adversarial contracts between developers and construction firms - which are often a result of project tenders that award contracts based solely on construction costs - are partly to blame for stalling productivity growth in the construction sector globally.

Mukund Sridhar, a McKinsey partner and one of the authors of the study, shared the findings with an audience of chief executives and ministerial-level officials at the Global Infrastructure Initiative on Thursday.

Incidentally, the study also found Singapore to be a laggard in construction sector labour p…