Construction project management challenges often require project managers to find the solutions to keep a construction site running safely, smoothly, and within schedule. They have to ensure that everyone has what they need to deliver and complete the construction project on time.
According to a recent study, only 43% of businesses claimed to mostly finish projects within the allotted budget. So the majority of the businesses can’t finish construction projects exceeding their allotted budget. This happens because property owners, stakeholders, suppliers, lenders, and subcontractors have different interests and aspects that come into play in the project. Also, the project managers face issues like bad weather conditions and government regulations causing more delays in the projects. Let’s explore more about the construction management challenges and how to address those challenges.
Top Construction Management Challenges
When companies work on big construction projects, the first thing that comes is managing the construction project effectively. Our experts have pointed out these top 10 challenges after their close observation and years of experience.
1. No Clear Objectives
The first and most common challenge in project management is undefined objectives and goals. Sometimes the property owners don’t have a clear idea of what they want from the project and how they want to lead it.
Without predefining the goals and clarifying the agenda, you are wasting your resources and time, which also results in delays. However, it is a big challenge but with a solution. The common goal of every construction project is to complete it on scheduled time. These goals can be achieved with proper execution, proper planning, timely decision-making, and task delegation. The project managers have to stay active throughout the project and have clear-cut communication with the client. Once the clients give a thumbs up to the project plan, it will be easy to work accordingly.
2. Budget Limitations
In the real estate industry, it is the most common challenge for construction projects. Construction project managers are in charge of setting up reasonable expectations for costs and managing them promptly. A miscalculation in the estimation of budget overrun will cause the project to collapse.
Sometimes the construction projects are ongoing for a year or two and it is important to have the budget estimations for the entire project timeline. After a few months, the prices of materials or vendors can exceed, which can cause trouble for the project’s already allocated budget.
Keep an eye on the budget constantly and also understand that some of the aspects, like labour shortage, resource shortage, environmental issues, and currency exchange, cannot be controlled beforehand.
3. Poor Communication
Communication is the key and if there is a lack of communication with the clients, the project can be doomed. It is essential to involve the team at maximum so they can put their hundred per cent into solving the issues.
Every project manager must set up a ladder that informs all the important things to the team, whether it is an achievement or an obstacle. Clear communication helps the team to resolve all the challenges together in unity.
4. Inflated Aspiration
Many stakeholders and clients can make unnecessary requests, like limiting the budget allotment or accelerating the schedule. These unrealistic expectations and unreasonable requests are productivity killers.
At this time, the project manager must advocate for the team and respond to unrealistic expectations after having a communication with the team and convey their feedback.
5. Time Management
Limited time acts as the amplest issue resulting in high accident rates, defective designs, and loss in revenue. Now the project managers have to tackle various variables that cause delays and design workflows to meet the requirements. Proper project scheduling techniques can help face the challenges better.
6. Limited Skills
In the construction industry, people tend to work with those they can trust. People who know how to work together can form a stronger and more efficient team. However, the skill gap in some teams can cause delays as well.
Construction project managers must be aware of the skills gaps before they start effecting the project’s overall health. Once you detect these gaps, fill the skills gaps as soon as possible.
7. Poor Structure
Without clear work responsibilities, it becomes difficult to get things done up to the mark. A construction project can be delayed if people don’t have a target to hit or go over budget. Performance management is one of the major aspects of construction project management.
For better performance management, they all need defined work and tasks to perform. Project managers can split bigger goals into smaller ones and set daily targets for every individual.
8. Inadequate Risk Management
Another common construction project management issue is managing the risk, which needs a proper skill set. Project managers must have the skill set to identify problems and find ways to minimise them. Without prior risk management and project analysis, the project will get delayed and go over budget.
9. Obstructed Cash Flow
The construction projects work with the invoicing system, which delays the payments. If the payment is not cleared, it negatively impacts the cash flow of the company. Also, it can dry up a well of funds for other projects and also cause delays.
Therefore, the invoicing system needs to be improved and with hybrid software technology and follow-ups, companies can ensure that the cash flow is not affected.
10. Security Concerns
Worksite safety is the biggest issue. Workplace injuries and illnesses are other common problems on construction sites. One way to keep workers safe is to properly train them about safety. Strict enforcement of safe work practices can avoid accidents. A firm’s commitment to worker safety also improves its reputation.
Now there are AI-based new digital technologies to detect whether workers are wearing hard hats or not. It is apparent that the risks are higher in the construction industry if there is no proper management and monitoring.
Final Word
The main challenge for every construction project management system is to complete the project on its decided deadline and within its predefined budget. To face all the challenges, you have to invest your time in managing your project and make it efficient without any unpleasant incidents. New technology in construction will simplify the workflow and help to improve cash flow and communication. If you are looking for the best construction, then Union Developers. Their expert team will deliver your project on time and within budget perfectly.
