Latin America Biannual Construction Market Report 3Q/4Q 2024
Hot topics
Climate change
El Niño had negative consequences for Peru’s economy over the last year and adverse effects such as excessive rainfall hampered construction programmes.
Just under three-quarters of respondents said their projects were disrupted due to weather in the last six months. Most said the resulting delay was 1–2 weeks, although nearly a quarter saw a more significant delay of four weeks or longer.
The Peruvian meteorology and hydrology agency, SENAMHI, states that the recent El Niño was among the five strongest since 1950.
As La Niña is expected to emerge in the coming months, colder weather along with an increased risk of extreme weather events will be the challenge for keeping building works ongoing.
Lima, along with other coastal cities, is set to see temperatures of 12°C or less over spring in contrast to previous years, when warmer temperatures prevailed.
Working patterns
Our survey respondents were almost evenly split on whether or not the shift in working patterns impacts the design and delivery of projects.
The shift in working patterns is a nuanced picture across Peru, but major technological players are making an impact ensuring remote working is efficient and viable.
Peru’s first private 4G LTE network was commissioned in 2020 after Nokia and Telefónica Peru signed a contract with MMG’s Minera Las Bambas to enable digitalisation and automation on projects. Data can now be exchanged at higher speeds and with adequate stability.
Security on site is a potentially escalating issue for construction workers. In August, thousands of union workers and members of social organisations demonstrated in Lima, demanding greater security following the deaths of two construction union leaders — believed to have been killed by contract killers.
Innovation
The construction industry is beginning to implement digital tools on major projects following the success of industries such as mining.
Nearly eight in ten respondents said their projects use modern methods of construction or digital technologies.
Gleeds has used BIM on projects within UKDT’s remit to optimise coordination and quality across the design and build stages to international standards.
BIM continues to make inroads on major projects and is expected to be Venezuela
BIM continues to make inroads on major projects and is expected to be made mandatory throughout the public sector by 2030 in the BIM Peru Plan — a political measure of the National Competitiveness and Productivity Plan.
Throughout the Peru Reconstruction Programme, UKDT has arranged various formal knowledge transfer activities, alongside establishing a PMO and upskilling through on-the-job coaching.
Other examples of innovation include operations at the Las Bambas mine in Apurímac, which have benefitted from augmented reality being used for inspections and maintaining facilities.
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