Businesses operate in a complex and ever-changing industry. Commercial properties are mushrooming in every corner of every city. Unfortunately, not many people are aware of what goes on behind the scenes of a construction company.
Those working for a construction company are aware of the challenges they face every day during their routine jobs. It’s a major challenge for any construction company to complete a structurally sound commercial building on the designated time and budget. Here are the top five challenges that a construction company faces regularly.
Construction companies are one of the most regulated ventures. The government keeps these companies under strong scrutiny. Building codes are restrictive and licensing and permit requirements are challenging to achieve. Companies must adhere to many different regulations, as unsafe buildings are a major security risk for every city. However, it’s hard to meet the strict regulations and safety standards set by the local and federal government.
Social and Political Pressures
Social and political pressures pose a challenge to construction companies so much so that projects are held in progress for years. Pressure from the local community could delay or cancel a construction project that could be devastating for a construction company with losses in millions. The political and societal challenges can be overcome by holding meetings with local communities and concerned parties.
Health and Safety Concerns
Commercial construction is one industry that suffers accidents causing fatal injuries. Every day, thousands of companies with millions of employees are working round the clock to meet deadlines. During their work, workers are exposed to different hazards from machinery, falling debris, malfunctioning equipment, electrical shocks, falls, trench and scaffold collapses.
Apart from the human suffering, financial constraints hit commercial construction companies very hard. Some losses from accidents can cost a company millions in compensation to the worker and loss of equipment. Many of these losses can make a major impact on proper bookkeeping within a construction company.
Construction companies can take different measures to completely eliminate or reduce the risk of accidents by meeting the health and safety concerns. Fatal human loss and financial crisis can be overcome by maintaining high safety standards.
Shortage of Skilled Labor
The biggest asset of any company is their human resource; commercial construction companies are no different in this regard. They must have a competent, trained and highly skilled human capital to keep everything in its correct order.
The shortage of labor is a major concern for commercial construction companies. To overcome this challenge, the construction company must take steps to work towards employee retention. Employee retention is particularly important for construction companies because not many people are willing to get into a construction business as the construction work is physically demanding, tough, and sometimes very dangerous. Paying better wages could help the company keep its employees for a longer period.
Construction is considered as one of the toughest industry because the biggest challenge is effective time management in order to meet deadlines. A simple time management becomes a major task in construction. A natural weather calamity can rip the project off the ground causing major delays in meeting deadlines. Every day a construction site is closed due to bad weather or any other issue, each day costs the commercial construction company to suffer major financial losses to be recorded in bookkeeping.
As construction is involved with other interdependent activities, cohesively forming a cycle to achieve the same goal. This is a major challenge particular to construction business and it is effected by seasonal changes, access issues, accidents, machinery malfunction or breakdown can cause huge delays. Companies can work to improve their time management by keeping a check on the weather forecast and manage the delivery dates for necessary raw materials.
Running a commercial construction company is not easy, it is challenging and complicated. Overcoming the aforementioned challenges is vital for a company to maintain their operations while managing to complete the projects on their due date.
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