It takes maturity and a lot of managerial expertise to run construction projects successfully. Even experienced construction project managers, however, are not immune to failure because the risks associated with operating in this sector are substantially higher than those associated with working in most other performance-related sectors.
It is exceedingly difficult to regulate many of the factors that pose a threat to a building project’s success. However, a manager can increase the likelihood that a project will succeed by resolving as many potential control issues and planning shortfalls as they can.
Construction Project Managers Challenges
1. Supply Chain Distributions and High Cost of Materials
Supply chain difficulties brought on by the epidemic continue to plague the construction sector. Global manufacturers, who are hampered not just by travel and shipping constraints but also by labor shortages, obtain essential building supplies including tile, flooring material, metal, lumber, and more. These elements increase expenses and slow down deliveries.
2. Delays in Construction
Supply chain problems brought on by rising material prices are not only increasing the cost of construction but also generating delays. More than 75% of construction management companies report that projects have been put off or abandoned because supplies were scarce or expenses exceeded budget.
Disruptions in the supply chain are not likely to be fixed for at least another six months. To manage client expectations for timetables and completion dates while discovering ways to operate more productively, project managers will need to hone their forecasting and scheduling skills.
3. Labour Shortage
Over the past ten years, the construction sector has had a labor shortage that is only growing worse. According to new research from the Associated Builders and Contractors (ABC), the construction sector will need to hire 430,000 more people in 2021 than it did in 2020 just to keep up with the growth in demand.
This shortage is a result of numerous factors. A large number of construction employees are retiring and leaving the field as they get older. Additionally, as more opportunities related to technology have been available in recent years, interest in trade professions like building has decreased.
It becomes very challenging to staff job sites with skilled workers, who are not only hard to locate but also much more expensive. Add to that the workers being unwell or being confined due to Covid-19. Construction project managers will need to reduce the cost of skilled labor, swiftly educate new hires, and assist teams in becoming more effective and productive. Otherwise, it can lead to have a high construction cost that project managers need to consider.
4. Managing Increased Risk
Risk can take many different forms on the workplace, including safety, material and equipment theft, and weather-related delays and damage. Sadly, the average injury rate for the construction industry is 71 percent greater than the average for all industries. Covid-19 infections make issues worse by sending employees home or to the hospital.
Workers who have been exposed may miss up to 14 days while under quarantine. These elements work together to affect a company’s capacity to maintain projects on schedule.
The risk of theft is rising as well on building sites. They are a major target because the materials are so expensive and difficult to find. Businesses in some regions of the nation are reporting one-day material losses of $10,000 or more, with a lot of it being lumber.
The possibility of damages from storms and other natural disasters like wildfires looms large due to global warming’s significant effects on regional weather patterns. Due to crews’ inability to accomplish some activities, these climate change-related occurrences might also lead to building delays.
Construction companies must use round-the-clock surveillance and keep meticulous records to support police investigations should an incident occur in order to reduce the many sorts of risk on the project. Such proof will be required to support budget hikes and delays brought on by labor absences, material shortages, and weather.
OSHA standards are getting stricter every year, and this year, the authority added new rules addressing the CDC’s Covid-19 guidelines. As a result, businesses are under more pressure to uphold legal requirements and prevent infractions that carry heavy penalties.
In addition to making quality regulations on the jobsite, project managers will need a productive method of recording their efforts and demonstrating compliance in the event of an audit. Due to the manual nature of the work, businesses may invest a significant amount of time and money in data collection and providing auditors with proof of compliance.
In order to lower the expenses of compliance and the risk of non-compliance, businesses must develop ways to streamline and automate documentation.
6. Technology Adoption
Covid-19 has accelerated technology adoption in numerous businesses by as much as six years. Additionally, the construction sector embraced more technology in one year than it would have typically done in three. Technology of what kind? To mention a few, there are wearables with a safety focus, scanning tools, drones, and digital collaboration platforms.
Businesses should seek out solutions that are simple to use and deploy in order to promote technology adoption. In order to be used as part of the established process, solutions should be able to interact with current systems, such as project management software.
On project sites, there will also be advanced construction camera systems that allow for remote viewing, collaboration tools, and cloud-based photo and video storage. Cost reduction, scheduling, labor shortages, risk management, and compliance are all aided by these aspects.