Even the most experienced project managers face challenges daily. Construction projects are subject to more risk than most other sectors – each project is unique and there are numerous factors that can affect its outcome. Not to mention that many of these factors are difficult to control.
However, that doesn't mean there isn't a solution for every construction project management challenge.
Construction site problems and their solutions
Let's explore the construction industry's top five challenges in 2022 and how project managers can overcome them.
1. Communication and collaboration
Communication is a significant part of a project manager's role – project managers in the construction industry spend 90% of their time on it. Therefore, it is not surprising that communication presents one of the biggest challenges in managing construction projects.
You cannot manage a project well without effective communication.
Fortunately, there are countless ways for project managers to improve their communication skills, including:
- Establishing a clear chain of communication
- Encouraging open communication
- Avoiding unnecessary jargon and acronyms
- Holding weekly team meetings
- Facilitating access to information
- Choosing the Right Communication Methods
As a project manager, it's your responsibility to facilitate communication and collaboration between teams, managers, and stakeholders. And even more than starting these conversations, you must ensure that everyone stays connected throughout each stage of the project.
2. Administrative burdens and restrictions
We mentioned that project managers spend a significant amount of time communicating, but what do they spend the rest of their time on? Administrative tasks such as checking for updates, writing reports and attending unnecessary meetings.
And then we have the many constraints of construction projects, which include much more than issues associated with physical resources – project managers must also address issues related to design specifications, compliance, permits to proceed, etc.
The solution to these construction project management challenges? Construction management software.
Project managers can use digital platforms to reduce administrative burdens and resolve constraints:
- Tracking changes, deviations and movements
- Monitoring and requesting updates instantly
- Create and share detailed reports in minutes
- Stay connected with site managers
- Keep everyone aligned with a single source of truth
3. Budgeting and cost overruns
How many of your construction projects met initial cost estimates? If that number is higher than you'd like to admit, you're not alone – McKinsey found that large projects tend to go 80% over budget and take 20% longer to complete than estimated.
Cost overruns are not only extremely common, but they also present a difficult construction project management challenge due to the number of factors that affect them, including:
- Changes in projects and customer demands
- Adverse weather conditions
- Unrealistic estimates for winning bids
- Material Price Escalations
Because cost overruns can occur for a wide variety of reasons, there is no single solution that will always work. However, you can significantly reduce them by optimizing your planning and scheduling practices and paying more attention to cost estimation.
4. Disputes and delays
Another huge challenge in managing construction projects is disputes and delays, which often result from the two problems we discussed above, combined with poor goal setting.
On the construction site, it is not possible to have a strong building without a solid foundation – we can apply this same principle to project management; The basis of the project are clearly defined objectives.
To overcome this construction project management challenge, you must work together with your project stakeholders to understand exactly what they want from the completed project and set clear goals to help your team meet those specifications.
The goals you set need to be:
- Specific in their scope
- Easily measurable
- Realistically achievable
- Relevant to stakeholder objectives
- Tied to a specific deadline
Finally, it's important to understand that setting these goals is more than establishing the end result of the project – it's a strategy for developing an action plan that delivers true value to the owner.
5. Security and risk management
Finally, we have the challenge of managing construction projects that affects each of the issues listed above: safety and risk management. Risks in this industry are diverse, costly and can result from a number of factors, including:
- On-site security risks
- Labor shortage
- Economic slowdowns
- Supply chain issues
- Inclement weather
- Team coordination issues
- Changes in material costs
There is no simple solution to solving this construction project management challenge – the key to dealing with this problem is adopting the right approach to risk management:
- Identify any potential risks relevant to the project
- Assess these risks based on the likelihood and severity of the impact
- Determine how to avoid risks or reduce their impact on the project
Digitalization can solve challenges in construction project management
You can remove or reduce almost all construction project management challenges through digitalization.
Unfortunately, delaying the adoption of new technologies is often the norm in the construction industry. And although many project managers understand the benefits that these technologies can bring, it is easy to find excuses to justify delaying implementation.
We've heard it all: digitalization is too expensive, it's too complicated, my team doesn't use it, etc.
But the truth is, given how often projects go over budget and deadlines, the industry can no longer afford to delay digitalization.
