General Contractor

Common Construction Management Problems

Here are some of the most common problems construction project managers face during a project.
Ben Conry
Twitter iconfacebook iconlinkedin icon

Every construction project has many working parts and multiple team members. For the project to run smoothly and be completed on time and within budget, project management is a vital part of successful construction. While project managers are skilled in the communications and tactical expertise required to keep a project running smoothly and effectively, some problems will likely arise along the way. Here are some of the most common problems construction project managers face during a project.

Cost Overrunning

Project costs can vary widely and change due to many different circumstances that arise during a project. As a result, cost overrun is a pervasive and impactful risk in construction that is difficult to mitigate. Going over budget is caused by several factors, including the resource-intensive nature of the industry, changing supply costs, rising equipment costs, and unexpected changes during the project. Realistic cost estimates can only take project managers so far in mitigating the problem. When teams use technology to estimate costs, overrunning can be reduced.

Compliance Issues

Compliance with federal, state, and local building regulations is essential. Unfortunately, compliance training can be expensive and ineffective. Furthermore, the costs of maintaining compliance can quickly get expensive, and the costs of non-compliance are significantly more costly. Even if you have yet to experience any violations, you should keep up with good compliance practices. Risks associated with non-compliance are constantly evolving, making old compliance programs ineffective. You can decrease compliance issues by establishing a robust compliance program and using construction solutions designed to follow compliance regulations automatically.

Want more tips on compliance and document management? Sign up for our newsletter.

Communication issues are a common problem in construction management and projects

Communication Issues in Construction Management

A recent survey revealed that poor communication and poor project data account for 48% of all rework on U.S. construction projects, costing $31.3 billion per year. Clear communication is vital for a construction project to stay on track. Miscommunication and failure to provide project updates can result in delays and rework. To improve communication in your construction company:

  • Choose a standard communication platform and require all workers to use it.
  • Make all communications clear and concise.
  • Develop company processes around specific communications.
  • Create consistent steps for communicating critical information.
  • Centralize where all official documents & communications are stored.

Managing the Labor Shortage

The construction labor shortage makes it difficult for contractors to meet project deadlines, requires laborers to take on more work, and even results in companies turning down work because they need to hire more workers. Beyond taking steps to improve recruiting methods to attract new hires, construction companies can also streamline processes to make the job easier. By investing in construction technology that helps create complex building designs, makes large projects easy to manage, improves communication, automates repetitive tasks, and eliminates payroll errors, companies can allow workers to focus on the project in progress.

Lack of Forecasting

Accurate cost analysis is the number one thing that keeps construction projects within budget. Yet the ability to accurately budget and forecast costs remains challenging due to the siloed nature of the industry's financial, planning, and scheduling systems. To address inaccurate forecasting, construction companies must first identify the root cause for inaccuracies, then consider tools to eliminate the issues. When evaluating forecasting solutions, companies should consider the importance of technology that improves communication between departments and offers flexibility.

Lack of proper Forecasting and Goalsetting in Construction can cause compounding issues

Lack of Tangible Goals from Construction Management

Without clearly defined goals, every party involved with a construction project has different expectations. When managers and stakeholders aren’t on the same page regarding project objectives, it’s practically impossible to deliver satisfactory results. Communication is crucial in creating clear goals at the beginning of a project. Stakeholders need clear goals for the specific steps in project completion. In these instances, project managers should examine the endpoint objectives of the project and ask clarifying questions to define common goals. Once leadership establishes goals and milestones, the project can move forward.

Management in the construction industry requires a robust knowledge of many different industries and skills. But if you’re tired of constantly reacting rather than being proactive, Flashtract can help. We’re building tools that take the guesswork out of forecasting, make checking project progress easy, and improve communication for the whole team.

If you’re ready to see how we can supercharge your ERP and billing tools, fill out the form below, and we’ll be in touch soon.

Don't suffer through another month end close-out...

See why everyone is switching to Flashtract
Get started now
Correct documents, every time
Eliminate compliance risk
Easy to use and get started