Ten Constraints That May Hinder the Construction Project

Jumpstory Download20200922 084637

The construction biz is widely considered the most influential and imperative business throughout history. It is titled a chief driver for numerous economies across the globe, including China and the US. But do such industries come with their share of problems and obstacles? Yes. The construction business is amongst the most challenging industries. While the profits are remarkable, the issues are just as troublesome. Hence, here is a list of constraints that may hinder your construction project.

Rising Cost of Construction Materials

Although the fixed priced contracts may seem beneficial for both parties, the actual story is very different. Contractors are responsible for acquiring the raw materials for construction projects. Thus, always putting them at the risk of loss due to the fluctuating market pricing. Smaller construction companies are likely to be affected the most. However, that does not mean reputable companies cannot face similar problems.

Moreover, inflation and trade conflicts also contribute to the cost of raw materials. The past five years have seen an unfavorable upsurge in material costs.

Lack of Skilled Personnel

The construction industry will undoubtedly keep growing for an unforeseeable amount of time. But can the labor force keep up with the growing demand? The current generation of youngsters is being pushed towards higher education, leaving even fewer chances for future labor. Hiring an adequately skilled staff of engineers and designers for a particular niche has become difficult. But with the help of a few firms, you can quickly get the experienced engineers. For instance, there are many contractors offering architects and engineers that specialize in cultivation facility design.

A gradual yet effective solution for this would be to initiate mentorship programs for high school students. A comprehensive introduction to the line of work and its benefits is likely to increase future employment chances.

Communication Problems

The reason behind many project failures or mistakes is often communication. While moderate project management does narrow the gap for error and miscommunication, errors are still unavoidable. Over the years, technology has made it possible to avoid human interaction entirely. How does the industry benefit from this? Simple, as humans, the chances for misconduct are relatively high compared to machines.

Similarly, exploiting technology’s power to the fullest is vital for any line of work these days. Communication will improve several folds by implementing emails, text messaging, or even a dedicated app for your business.

Slow Billing and Payments

A common issue among most construction companies is unoptimized cash flow. The problem frequently stems from companies without an appropriate invoicing system. The ideal way to avoid this matter is through careful planning and outlining the project and its phases. Moreover, hiring an individual for marking each stage complete and directing the crew onto the next one could prove beneficial. The individual will also be responsible for setting the expectation for each phase. It will enable the company to earn regular payments as per progress.

Inadequate Safety Precautions

To cope with the inflation and taxes, or to maximize revenues, companies are known to cut corners. The likelihood of such an occurrence is not dependent on demand. Either high or low demand, the labor’s safety is prone to get compromised for a healthier revenue stream. However, what contractors fail to notice is that this option is likely to backfire eventually. Every individual has the right to a safe work environment. Therefore, non-compliance for this aspect will negatively affect the company in multiple ways.

Managing Documents

A new project means dealing with a large pile of papers. From contracts and invoices to material lists and insurance certificates, getting overwhelmed is inevitable. Stuffing your filing cabinets to the brim is the traditional option. However, with the progress in technology these past years, digitally handling your entire business and paperwork is possible. It will prevent unnecessary clutter and serve as an impressive tool for organizing and managing your files.

The Guilt Cycle

A business cannot proceed without any difficulties. Nevertheless, overcoming all such complications is possible. In most situations, the contractor, workers, and the client will point fingers at each other. Such projects are troublesome to continue. However, an option for getting back on track would be the contractor’s risk policy. The policy will provide insurance for the project, as well as for the core values. A myriad of problems can surface when undertaking a construction project. Hence, agreeing on a mutual policy before initiating the project is mandatory.

Undependable Subcontractors

Finding and hiring a trustworthy subcontractor for a project can be tedious. The rule of thumb is to interview the sub extensively and, most importantly, verify the legitimacy of their license. If in immediate need of a subcontractor, getting in touch with your suppliers is an option. Your supplier may link you up with their sub, or they could recommend some other agency. Contacting a former subcontractor is also worth considering.

Changeable Regulations

Being a contractor, keeping yourself updated with the ever-changing rules and regulations is crucial. As difficult as it may seem, it is rather facile. Blogs, social media, and articles are your best friend when it comes to being up-to-date with any changes. Furthermore, registering with various construction-based sites is vital. Additionally, be sure to subscribe to newsletters and auto-alert email services.

Convincing Your Clients

Clients, homeowners, in particular, tend to forget significant aspects of the deal. Sometimes it could be the requests they make while other times they may forget critical payment dates. An incident of this scale can tarnish the reputation your company has built over the years. Also, you could suffer unprecedented losses for no good reason. A piece of advice would be to have the client sign an agreement for each change or requirement they state. Although this would increase your paperwork, it will benefit you tremendously in the long run.

Conclusion

The construction business is not for everyone. It requires a certain degree of tenacity, vigilance, and management skills. With the ever-increasing demand for construction tasks, it has become difficult to recruit new labor and workforce. Though the lack of skilled workers is a problem, many contractors have yet to incorporate modern technology into their company. Therefore, the points mentioned above will hopefully aid you in getting past these problems.