What Are Challenges in Construction Project and Why Should You Care?

The construction industry has been growing faster and pleasing customers to build their dream homes. However, new issues and challenges started creeping up with the growth slowing development. 

Managing a construction project, small or big, is not an easy feat. For the construction industry to reach a bright future, businesses must adopt technology and confront unique challenges. But the fact is, only 23% of construction firms use software to tackle new challenges and issues. 

Simplifying these complex issues might be impossible, but with the right technology solution, construction businesses can automate several tasks by reducing errors and work burdens. 

Let’s dive into some more common issues and solutions for them-

1. Communication Problems

Lack of communication between departments is a major problem within the construction industry. 68% of employees declare experiencing issues due to poor communication. 

For example, for some reason, there was a change in design, but to the lack of communication between subcontractors and contractors, the whole project schedule might get delayed and will take time to redo things. The delay in the project will also affect the budget, which might rate the project high than the original budget. 

Using the construction software services helps connect the construction team and other staff involved, which is the first step to making communication easier. 

2. Managing your documentation

It’s no surprise that construction involves a lot of documentation work to deal with, from the contract, and receipts, to material orders and certificates. Dealing with all these document management processes is prone to human errors and slow work. 

The demand for the rise of high-rise buildings or below the ground of several miles has made documentation more complicated than before. Poor documentation can lead to budget overruns, rework, and unwanted delays in the project completion. 

For example, if the subcontractor needs some documents urgently, if the documents are not managed properly, it will take several hours to days to get them. That’s where the role of document control and management software comes into play; it helps to manage all your documents and search for them quickly whenever and wherever required. 

3. Working on a Schedule

Schedule issues are the major cause in delay projects and rework. As the project falls behind the schedule, hastily performed work might result in poor quality and nonconforming work that ultimately drags your project towards rework. 

Scheduling involves meticulously understanding the various tasks involved in the project and setting up a systematic manner to accomplish these goals. Every small task needs to be tracked and scheduled correctly, from outlining to delivering the final product. 

The schedule is bound to contain errors since there are so many tasks to schedule. A reliable construction scheduling software can identify mistakes and store information in one accessible platform.

4. Technology Adoption

Skill shortage, lack of training, and workers’ inherent aversion to technology play a huge role in the slow technology adoption. 

56% of construction firms do not have a dedicated R & D budget, making it a primary factor in slowing down technology adoption. Another reason is the lack of skilled workers in adopting and struggling to learn new skills. 

Many software and tools, including field service software, document management, control software, and customized software from construction software service providers, provide various benefits for businesses. There are also single one-off solutions to complete their work and keep their projects running without issues.

As we progress towards digitization, construction firms need to adopt it early. 

5. Tracking Materials and Equipment

Theft of construction equipment and material from the site is a significant issue. It’s terrible for projects as missing or unusable material would decrease the overall margin of the project. 

Fixing this problem requires investment in surveillance equipment, such as cameras, alarms, lighting, containers to store materials, and software to keep track of all the materials and equipment. 

Maintaining an inventory log of tools, materials, and equipment is vital to account for everything at the end of the day. It does not mean to include every single nail and screw, but records of tools and equipment that might cost high and can be easily tracked. 

6. Compliance Regulations

Keeping up with the rules is not easy, especially with so many different levels of laws. These include country and statewide laws or even local or single city regulations. 

The easiest way is to follow industry publications and read construction-related articles or blogs to get updated with the latest news, regulations, and rules. Sign up for newsletters, get emailed with the updated information, and dedicate a part of your day to catching up with regulations and rule changes. 

7. Delays with Cash Flow

Managing cash flow is crucial for the successful completion of any construction project. You need fast access to key metrics to forecast cash flow for construction projects and manage them successfully. 

97% of construction businesses experience stress over slow payments and cash flow management. 

For the construction industry, cash flow means managing incoming funds to procure materials, pay salaries (contractors, sub-contractors, vendors, and employees), complete projects, and support day-to-day operations. The key is ensuring cash flows fast enough to ensure the supply chain runs smoothly and keeps costs low. 

If there isn’t enough positive cash flow, the lack of funds can cause adverse issues on a project. These issues commonly occur when construction companies use outdated tools like spreadsheets. 

To run a business effectively and manage construction projects profitably, you need the right tool to enact the best cash flow practices. 

8. Budget Management

Cost overruns are a norm for construction projects. And many factors affect the initial budgeting process. 

80% of all construction projects are over budget. 

The factors that cause overbudgeting include changes in the scope of the project, inadequate project management, price escalations, adverse weather conditions, resource shortage, and many others. 

Other reasons include no project budget outline, no contingency plan, not using the right tool to track project spending, preliminary resource utilization plan, no proper documenting project deliverable, and many others. 

The key is to manage your funds properly. Stay on the top by using the right estimation technique and expense tracking tool or budgeting software that helps you out. 

9. Lack of Organizational Structure

Organizational structure is the backbone of all the operating procedures and workflow in a construction project. It determines the role of every employee and is the key to organizational growth. 

A clear structure lets team members know their responsibilities and to who they report. The lack of structure might lead to miscommunication, work delays, poor workflow, low employee morale, and stunt business growth. 

From simple task management and project planning to proper management, using the right tool and software can improve work velocity and get work done.

Wrapping Up

The demand for the rise of high-rise buildings or below the ground of several miles has made documentation more complicated than before. 

The construction industry is quite old, and some of the problems are extremely old that need to be solved by adopting tools and software.

Bamboo provides construction software services, including document management and control software, field service software, and many other customized options to help you out.