What is the most important challenge in your construction projects?

Posted by Nolan Noel on March 28th, 2021

Contractors large and small seem to face the same problems on the project after project. If you are a one-man painting contractor, a small remodeling business, or a general contractor with 20 years of experience in the industry, these construction problems have probably plagued you at one point or another.

Here are the answers you've been looking for on the top ten problems facing construction professionals today.

1. Lack of qualified workers

There is a big problem facing the construction industry: there are not enough skilled workers to meet growing demand. The younger generation is being pushed toward college rather than vocational trades. The benefits of a career in construction are not being sold to millennials, and much of today's workforce is nearing retirement.

2. Lack of communication

When things go wrong on a project, it is almost always due to a communication failure down the road. Technology is the answer to your communication problems. so it is very likely that almost everyone in your project has one. Using email, texting, and on a project can instantly provide information to everyone on the project in real-time and reduce slowdowns and roadblocks from a communication breakdown.

3. Unreliable subcontractors

Many contractors have trouble finding reliable substitutes for their jobs. If you are in a hurry and need to find a replacement, check with the material suppliers and vendors you work with on a regular basis. They will get the scoop and may have a great recommendation for a sub. You can also ask other subcontractors with whom you have worked for a recommendation. Always check a sub's licenses, make sure they have and list your company as an additional insured on your insurance before hiring them.

4. Programming

Programming can be tricky for even the most experienced construction professional. Once again, you are providing a solution to this common problem. Project management applications that you can access from a desktop computer or your smartphone or tablet allow you to visually chart the timeline of a project. Many applications allow a virtual "sticky note" style dashboard that allows you to easily see what needs to be completed and provides real-time project status updates.

5. High insurance costs

Contractor's insurance is part of the cost of doing business, but that doesn't mean you have to overpay. You can get lower rates on your contractor insurance by combining coverage, not letting your coverage expire, and reviewing your policies each year for changes that can save you money.

6. Changing the minds of homeowners

Homeowners who want changes in the middle of a project can "forget" about the requests they have made when it comes time to pay the bill. To protect yourself, your reputation, and your results; make sure you get a signed change order every time.

7. Cash available

You have payments due to subscribers, employees, vendors, material vendors, and equipment tenants ... but you are not paid until the project is complete. And unless you have enough cash flow available, this can be a major problem. Have an open business line of credit to help you get through the tough spots between past due bills and the end of the project, and you won't have to see your credit (or reputation) suffer.

8. Document management

Contracts, change orders, materials orders, receipts, invoices, job applications, insurance certificates… you probably have enough paper to fill an entire trailer of filing cabinets. Time to put down the paper. A digital solution can help you keep up with documents, organized on your projects, and on time with your payments. At a minimum, scan all documents on your computer and file / organize them digitally. Make sure to back up your computer to a cloud service or hard drive regularly in case you have a hardware problem.

9. The blame game

Nothing goes right in construction 100% of the time. When there is a bump in the road, the fingers begin to point. The general contractor blames the submarine, the owner blames the general contractor, the project manager blames the owner. When the worst-case scenario really does happen, skip the blame game and point the finger and get back on track with a builders risk policy. This type of specialized property insurance covers the project and all the principles on which it is based. Extreme weather, natural disasters, even theft, and vandalism can be situations where a construction policy course can get you back to work without pointing fingers and burnt bridges.

Did the owner change his mind about the materials after they were installed? Or did he decide that they didn't like the work after it was done and claim that he didn't fulfill his contract? Having a liability policy with coverage for defective workmanship can protect you from having to pay out of pocket for those new materials. Proper coverage eliminates the blame game, keeping your clients happy and your bottom line covered.

10. Ever-changing regulations

Bylt News is a digital Construction News that focuses on construction companies themselves, examining them in-depth to see what motivates them. If you're wondering what other construction companies are doing right that you might be mimicking, this is the post for you. Learn more visit https://bylt.news. Follow Construction News and industry publications for the latest updates on regulatory changes affecting your business. Sign up for newsletters and automatically receive new Construction News by email.