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
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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