Challenges in the construction industry

The construction industry faces challenges through direct, indirect and peripheral activities. Construction issues include  time constraints,workforce considerations, safety and the changing nature of the work itself.



The construction manager faces many challenges that stem from various sources. Most of these construction challenges can impact project success.

The construction manager must face the most common challenges such as time management (minimal delay), budget management (accurate estimation and management costs), people management (motivational worker) and compliance (staying on top of the rules).

Non-construction challenges that construction managers face that are part of the business landscape include legal issues, government regulations, environmental concerns, and socio-political activities. A good construction manager may face obstacles to gain a competitive advantage.

The construction manager must turn risks into opportunities and also understand the business, legal, and social aspects of construction.

Excellent CM manages operations to achieve project quality, cost, time and scope requirements.



Challenges in the construction industry

These are common problems that construction projects presently face:

Construction issues:

  • Productivity
  • Time delay
  • Capital equipment
  • Rise in cost wages
  • Material and supply costs rise
  • Construction schedule
  • Material availability
  • Quality of supervision
  • Shortage of skilled workers
  • Quality design criteria
  • Inflation
  • Government obstruction
  • Designing  schedule works
  • Delivery time of materials, supplies and equipment

Environmental issues:

  • Erosion and sedimentation control
  • Toxic waste, PCB 'etc
  • Noise
  • Wetlands and Parklands
  • Lead abatement
  • Asbestos

Socio- political issues:

  • Public participation in planning, design and construction
  • Civic / community group
  • Advisory boards

Legal issues:

  • Claiming Prevention, Support and Mitigation
  • Codes and permits
  • Labour and safety laws
  • Liability
  • Fiduciary duty
  • Government regulations
The success of a construction project is judged by meeting the criteria of cost, time, safety, resource allocation and quality set by the owner. The purpose of project management is to achieve goals and objectives through the planned expenditure of resources that meet the quality, cost, time, scope and safety requirements of the project. The construction manager must control, deflect, or mitigate the effects of any event or situation that may affect the success of the project.


Disputes in the construction industry

Construction disputes arise from environmental and behavioral factors. There are many different causes of disputes in the construction industry. Disputes waste money, therefore destroying profits and relationships and it diverts energy away from projects.

Construction delays, changes, efficiency issues, and cost overruns may be some of the reasons for the controversy. The construction dispute is usually between the owner and the main contractor, subcontractor, sub-sub contractor and design professionals. The main source of this problem is the lack of accuracy in the contract details between the parties involved. The construction industry has tried a different way to avoid disputes. Currently, the construction industry uses building information modeling (BIM) or 3D modeling and has significantly reduced such disputes.

Due to construction disputes a part of construction life falls into four categories:

  • Finance
  • Culture
  • Contract
  • External factors

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Top 10 Factors Influencing Construction Disputes:

A construction dispute can be the result of various factors such as:

  • Contract terms.
  • Technical issues.
  • Project status.
  • Parties involved.
  • Delay in bills.
  • Site conditions.
  • Degree of bias.
  • Third party.
  • Organizational Behavior.
  • Culture.
  • The most common cause of disputes :
  • Failure to operate the contract properly.
  • Poorly crafted or incomplete claims.
  • The employer / contractor / subcontractor is failing to understand and / or comply with its contractual obligation.
  • Errors and / or omissions in the contract document.
  • Incomplete design information or employer requirements.

Reasons for construction dispute by clients:

  • Poor management supervision.
  • Lowest Price Mindset in Contractor Engagement.
  • Poor communication.
  • Discrepancies in contract documents.
  • Failure to appoint project manager.
  • Failure to respond in time

Reasons for construction dispute by contractors:

  • Work delays.
  • Lack of understanding and agreement in contract procurement.
  • Insufficient CPM scheduling and update requirement.
  • Failure to plan and execute changes to tasks.
  • Reluctance to ask for clarification.

Reasons for construction dispute by Consultants

  • Design team fails to understand their responsibilities under contract.
  • Over design and understanding involving extra costs.
  • Improper detailing in drawings and specifications.
  • Design and specification inspection and errors or omissions from experts
  • Variations due to design errors.
  • Information to request for late information delivery and cumbersome approach.

Here are some ways to resolve the construction disputes:

  • Mediation
  • Judicial decision
  • Dispute resolution board
  • Arbitration
  • Judicial evaluation 








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