Insight From Hindsight Issue 25 Article
By Francisco Matta, Managing Consultant, Joseph Vergara, Associate Director, and Julio Villa, Managing Consultant
Latin America has experienced a marked increase in construction projects, from residential and commercial developments to industrial and infrastructure facilities. Innovation in these types of projects has also been increasing. Recent projects include the construction of the new Mexico City International Airport, the planned development in Peru of San Lorenzo Island into a satellite city, and the creation of an inter-oceanic corridor to facilitate trade between Argentina and Chile. This increase in volume has resulted in a renewed interest from both local and foreign developers, which has necessitated a more structured, complex, and formal approach to the development of construction projects. Along with this increase in volume, technology is driving the industry toward faster development, albeit with greater risk. This article highlights common issues faced by local and regional owners, designers, and builders in the Latin America construction market that result from the higher degree of complexity as the region adjusts to this new paradigm.