Challenges in Construction Project

The construction industry has been living through an exciting phase of its life, growing nonstop and facing many challenges at the same time. There are many potential challenges in the life of a construction project. Project managers are tasked with keeping a site running smoothly, safely, within schedule and on budget. Sometimes, this is a very difficult ask.

Listed below are the common problems in construction project with ways how to solve them.

  1. Limited Skills

Construction is very much a reputation-based industry. People tend to work with people they know and trust. This can often be a great thing, as teams who know how to work together can be incredibly efficient. But when there is a skills gap in the team, it could cause some delays.

The solution is to be aware of these skills gaps before they have an impact on the project. Once you detect these gaps, you can fill them quickly and efficiently.

  1. Poor Communication

Communication is an important tool in any profession, but it’s especially important when work is delegated amongst various parties. Without clear and effective communicating, important tasks can slip through the cracks and the team can remain unaware of an issue until it’s too late to rectify. Therefore, project managers need to enact clear guidelines.

There should be communication up a clear ladder that informs the team of any progress or obstacles at the end of each day. This way, problems can be solved proactively. If in-person meetings are not an option, using different types of software could be an excellent solution.

  1. 3. Changing Minds of Homeowners

Homeowners who want changes in the middle of a project may “forget” about the requests they’ve made when it comes time to pay the bill. In order to protect yourself, your reputation, and your bottom line; be sure that you get a signed change order every single time.

  1. 4. Available Cash

You have payments due to subs, employees, vendors, materials suppliers, and equipment renters… but you don’t get paid until the project is complete. And unless you have enough available cash flow, this can be a major problem. Have an open business line of credit to see you through the tough spots between bills due and project’s end, and you won’t have to see your credit (or reputation) suffer.

  1. 5. Document Management

Contracts, change orders, materials orders, receipts, invoices, employment applications, certificates of insurance… you probably have enough paper to fill an entire trailer of filing cabinets. It’s time to go paperless. A digital solution can help you stay on track of documents, organized on your projects, and on-time with your payments. At the very least, scan all documents into your computer and digitally file/ organize them. Be sure to backup your computer to a cloud service or hard drive regularly in case you have a hardware issue.

  1. 6. Unreliable Subcontractors

Many contractors have problems finding reliable subs for their jobs. If you are in a pinch and need to find a sub, check with the materials suppliers and vendors that you work with regularly. They will have the inside scoop, and may have a great recommendation for a sub. You can also ask other subcontractors that you have worked with for a recommendation, too. Always check a sub’s licenses, make sure they carry general liability insurance, and list your company as additional insured on their insurance before you hire them.


  1. 7. High Insurance Costs

Contractor insurance is part of the cost of doing business, but that doesn’t mean you have to overpay for it. You can get lower rates on your contractor insurance by combining coverage, not letting your coverage lapse, and reviewing your policies each year for changes that may save you money.


  1. The problem of “pointing fingers”

Nothing ever goes smoothly in construction 100% of the time. When there is a bump in the road, fingers start pointing. The general contractor blames the sub, the homeowner blames the general contractor, the project manager blames the owner. When a worst-case scenario actually occurs, skip the blame game and finger pointing and get back on track with a builders risk policy. This type of specialized property insurance covers the project, and all of the principles working on it. Extreme weather, natural disasters, even theft and vandalism can all be situations where a course of construction policy can get you back to work without finger pointing and burnt bridges.

ONYX Insurance Brokers want to make sure that you wouldn’t have to encounter these challenges, or at least avoid them before it happens. For your insurance needs, feel free to contact or email ONYX Insurance now!







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