There are many potential pitfalls in the lifecycle of a construction project. The project manager is responsible for keeping the website running smoothly, safely, on time and on budget. Sometimes it’s a very difficult request.
According to one study, 98% of construction projects go over budget and 77% of them are significantly delayed.
So what causes these delays and budget problems, and how can project managers prepare? These are just six typical challenges faced by a construction project, along with some proactive strategies for mastering them.
- Inadequate Risk Management
Often, project managers put in place safeguards against long-term risk. However, short-term problems are often not taken into account. These issues can quickly become snowballs and start to have a real impact on profitability.
Whether it’s unreliable subcontractors, scheduling conflicts, or changing stakeholder preferences, any seemingly minor issue can derail a project. Therefore, it is important to have a backup plan. Allow some space in the schedule and invest in programs like safety training to avoid these potential problems.
- Lack Of Structure
Without clear goals, it’s hard to get things done efficiently. A construction project can easily be behind schedule or over budget (or both) if people don’t have clear goals to achieve. And without those goals, it’s hard to hold people accountable for their role in a project. Performance management is an important aspect of project management. To accomplish this and keep everyone focused on their tasks, they all need to complete clear tasks. Break down larger project-wide goals into smaller daily goals that individuals need to accomplish. If something is not done one day, it will be worse the next day. Hold everyone accountable to defined processes. This way you can prevent the whole project from falling apart at your hands.
- Misinformation
Communication is an important tool in any profession, but it is especially important when work is delegated between different parties. Without clear and effective communication, important tasks can be missed and the team may not be aware of the problem until it is too late to fix it. Therefore, project managers should apply clear guidelines.
There must be communication on a clear scale to keep the team informed of any progress or setbacks at the end of each day. In this way, problems can be resolved proactively. If face-to-face meetings are not an option, using different types of software can be a great solution
- Unrealistic Expectations/Poor Forecasts
A number of customers and stakeholders may make large requests. Whether they want a project to be completed on schedule quickly or on a limited budget, their expectations can come with some challenges. While some things are doable for a skilled project manager, others are not. Working with unattainable goals can really affect productivity; Why exhaust yourself by working overtime when you’ve tried your best and you’re still not succeeding?
Some of these expectations are due to poor forecasts. It is possible that these forecasts, like risk management, focus on the long term rather than the short term. Break these predictions down into monthly, weekly, and daily goals to see if they are actually achievable. Then, if necessary, communicate the issues to the stakeholders. Offer an alternative so they can see an ambitious but achievable schedule or budget. Manage expectations early and you can set up a successful project.
- Delayed Cash flow
The construction industry relies on invoices, which can sometimes be an outdated system. And if payments are delayed, it can negatively impact a business’s cash flow. This, in turn, can deplete sunk funds for other projects and lead to delays.
Therefore, the payment system must evolve. With innovative software and adequate tracking, construction companies can ensure that cash flow does not negatively affect other projects.
- Limited Skills
Construction is a reputation-based industry. People tend to work with people they know and trust. This can often be a good thing, because teams that know how to work together can be extremely productive. But when there is a lack of skill in the team, it can lead to delays. The solution is to be aware of these skills gaps before they impact the project. Once you spot these gaps, you can close them quickly and efficiently. The best way to do this is with a recruiter like Michael Page, whose construction professionals can quickly find you the right professional.
If you’re looking for great construction talent, submit a job description or contact one of our expert recruitment consultants today.
