5 Biggest Challenges In The Construction Industry
Within any industry, there are various challenges to overcome, be it financial hardships, employees, or even industry-specific struggles, and the construction industry is no different.
The challenges within the construction industry have long been identified, however, they have not been addressed for the past decades. The article goes into detail about how these longstanding challenges can be solved through the embracing of the latest technological solutions.
1. Rising Cost of Material
A challenge construction companies are facing is the rising cost of materials. The pricing of raw materials is always fluctuating and can become major issues for construction projects, particularly for smaller construction companies with low profit margins.
Today there are various technological applications that can filter information to fit certain criteria. The software will identify suppliers based on your selected criteria be it price, quality or even location of supplier. Saving time and resources on procurement can remove much of the hassle in the planning phase allowing a quicker start to the project.
2. Poor Cash Flow Management
In a recent survey, 84% of construction firms reported that they had problems with cash flow. With 19% citing it as a recurring issue. According to PWC on average payment can take up to 83 days. Slow, late and partial payments can cause serious cash flow implications for construction businesses.
Tracking and monitoring cash flow can now be done through technology and software such as Contract365 .NET ERP solution. By implementing a robust construction management system, you can automate and optimize your billings and expenses in an extremely efficient manner.
3. Lack of Collaboration
Construction is a multifaceted industry and the ability to work as a team is critical for completing projects in a timely manner. A well planned out project allows smooth transition from each phase of the project cycle to the next. However, lack of collaboration between owners, main contractors, sub-contractors and suppliers and also on-site workers can delay the project delivery schedule of construction projects.
These project parties are now realizing that sharing of knowledge and information is one of the key elements of a successful contractual relationship.
4. Unreliable Subcontracting
Construction projects are a team effort, with all parties involved working together to deliver a project to the client. However, when a piece in the equation does not contribute as promised, various issues can arise.
In most construction projects, there is a possibility that subcontractors sublet their work to other subcontractors; this practice is known as multilayer subcontracting. Issues that arise from this is that the main contractor is not able to assess the qualification of the third party involved.
Hence, making profiling and compliance management a criteria before engaging new members in the project will help elevate the levels of the project performance.
5. Resistance to Change
Another issue facing the construction businesses is a general reluctance from contractors to embrace new technologies in their construction processes, but instead still keeping to traditional ways. As the construction landscape continues to evolve with the times, it is important that construction businesses keep up to date with market technological trends and innovate to stay relevant.
Digitization removes the complex and tedious data entry work from your workers, having a simplified timesheet allows them to work more efficiently, saving time and cost, and allowing them to move on to their next task.
More often today we are witnessing smart construction software, 3D scanning and printing, Building Information Modelling (BIM), autonomous equipment, drone technology, and AR/VR becoming widely practiced in construction. By leveraging these technologies to lower construction risks and costs, it can revolutionize how the construction industry operates as a whole.
Defying the Odds – Mobility Paving the Way
As projects continue to become more sophisticated and with new restrictions in place due to the existing environment, main contractors can take the initiative to combat these issues with the use of the latest mobile technology.
Business owners understand that employees are the foundation of any project. Downloading mobile management tools allows you to keep track of their work, and creates a channel whereby you can always be reached in the case of unforeseen circumstances while also having an easy means to make announcements keeping all members on the same page.
In conclusion, technology has come so far that it has brought the industry tremendous effective benefits in various aspects of construction. Mobile technology has improved the way the construction team collaborates with instant access to project data at their fingertips, providing flexibility and therefore bringing significant value to the construction business overall.