Top 5 challenges faced by construction project owners

Construction projects encompass a multitude of intricate processes that must all be coordinated efficiently. The high complexity of construction projects means a broader spectrum of challenges waiting to unfold before, during, and after building. Most of the challenges encountered boil down to two core problems: project delays and extra costs.

The construction industry is one of the largest contributors to the U.S. economy. The construction sector builds structures worth 1.4 trillion dollars every year, employing around 733,000 workers. While the construction industry is vibrant and thriving, there are several challenges that project owners face on a regular basis.

1. Planning errors

Due consideration not being given to project requirements and ground realities results in a project strategy that lacks structure and doesn’t clear targets, especially if there’s no backup plan.

Badly planned projects are bound to exceed budgets and experience delays, as there are likely to be no well-defined milestones and targets. When workers are left in the dark about short-term and long-term targets, they tend to fall behind.

It’s important to break down project-wide goals into smaller daily components. This ensures that everyone knows clearly what their responsibilities are and what needs to be achieved on both a short-term and long-term basis. The organized execution of short-term progress will have a compounding effect, resulting in sustained implementation of the project.

Project goals are more likely to be achieved in a timely and cost-effective manner when all team members are on top of their game at all times. Developing a well-defined roadmap for carrying out a construction project can be a make-or-break and should be given utmost importance.

Optioneering tools like https://www.alicetechnologies.com/solutions/for-owners can give project owners a better handle on planning. With technological solutions like ALICE, you can make better financial projections and accurately assess the impact of design changes.

2. A shortage of skilled labor

According to estimates, the U.S. construction industry will need an additional 1 million workers across the nation in the next two years to satisfy labor gaps and sustain itself. Needless to say, there’s a critical shortage of qualified workers in the construction industry.

This ongoing issue has, however, driven innovation, with different methods developed to cover for the labor shortage. Modular construction and the use of technology have somewhat minimized the impact of the worker shortage, with machines and robotics, software, 3D printing, and drones filling in for gaps.

Working on your existing workforce can also be helpful for labor retention. Ensure your workers are given opportunities for advancement, arranging regular training workshops and mentorship programs.

3. Material sourcing and supply chain problems

Price volatility derails project budgeting, and it’s something that construction project owners often have to deal with.

Stockpiling can fix the issue to some extent, but this comes with its fair share of problems. For example, stored materials might not be insured if you don’t adhere to compliance factors. Many insurance policies also do not cover stored materials. This can lead to cash flow problems, which results in project delays.

Opting for alternative construction materials like mass timber and bendable concrete can solve the issue temporarily, but that, too, is not an ideal long-term solution. This is due to the fact that these materials are price-prohibitive and are not widely permitted for building.

Careful planning tailored to project needs and keeping yourself informed about market fluctuations can help in devising an apt sourcing strategy.

4. Poor communication

The complexity of construction projects demands the need for every stakeholder to be continuously informed, and that requires an effective communication strategy.

Guidelines should be established regarding communication protocols before the project actually starts, with coordination between different project entities planned so that no information is overlooked and workflows can be perfectly synced.

Streamlined communication processes will ensure your project runs smoothly and that any bottlenecks that appear during the course of the project are removed in a timely manner.

If you feel that in-person meetings take up a lot of valuable time, you might consider opting for software that streamlines information exchange.

5. Weather and safety issues

Climate change has caused an increasing number of hurricanes in many parts of the United States, resulting in major delays for construction projects. Aggressive weather phenomena are expected to cause considerable damage and loss in the coming years.

Planning for construction projects will see an increasing need to account for weather-related delays so project owners are logistically ready to cope with the fallout.

It’s also common for owners to have to deal with hazards involving injuries to workers. All necessary steps should be taken to ensure worker safety, with practices and procedures implemented for prevention. Worker training programs can also play an important role in educating laborers about workplace hazards and how to avoid them.

Project owners should be ready to deal with challenges

Being a construction project owner means having to anticipate dealing with these issues. Understanding these challenges will help you devise the right plan to reach your project goals.