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8 common challenges faced by construction owners
On September 01, 2022 By Kumar Abhishek Anand

8 common challenges faced by construction owners

Construction is the second position in the Indian industrial and commercial sector. The industry's contribution to India's GDP is around 9% and employs more than 51 million individuals. In the wake of the recent lockdown and various restrictions imposed because of the COVID-19 pandemic, construction owners have suffered to a large extent. Research and analysis firms predict steady growth for 2021 and beyond; however, many challenges remain in the industry. The article below will examine the most pressing problems and obstacles construction owners face in India.

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Common challenges faced by construction owners

Here are 8 common challenges faced by construction owners :

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1. Slow pace of adoption of technology

Construction is notoriously slow-paced in the adoption of technology, and the issue has been present for many years. While most business owners are aware of the many benefits that technological advancements can offer, however, it's common for construction companies to have fairly small budgets for their technological departments.

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The irony is that these tools are extremely effective in combating many of the biggest issues that plague the construction industry. As we've previously mentioned, one of these issues is scheduling; however, it's not the only one.

2. Increase in the Cost of Materials

The price of materials used in the execution process is increasing. The primary reason is an insufficient supply of material to the industry due to a disrupted supply chain. Changes are being implemented by the Central as well as the government of the state to improve economic stability.

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Addon cess on taxes is being introduced, increasing prices for raw materials. This results in high costs, which result in a higher value evaluation of the constructions and a big problem for owners. Therefore, buyers are not as likely to invest in the construction industry. The best way to mitigate this issue is by implementing automated and advanced technologies to boost the satisfaction of customers and reduce material wastage.

3. Vandalism/theft on site

Vandalism and theft are both things that aren't usually encountered on construction sites, but the problem has been a headache for owners for a long time and has no sign of ending. This is particularly detrimental to the company that is involved, as each unusable or missing material could reduce the overall value of the project.

The solution to this issue requires investment in your existing surveillance equipment, like alarms, cameras, fences and more lighting at the site and more containers that are closed for storing materials and on.

4. Environment Preservation

The most important part of every construction project is that the environment is protected. The natural environment in India can be very difficult to avoid soil erosion and degradation. The main reason is due to floods droughts, droughts, soil acidity, as well as aridity and salinity. In addition, water and air pollution levels are not within the limits of control in the country. The urbanisation of major cities has lowered soil quality and has impacted the environmental quality. Builders and real estate owners are required to implement creative strategies and spend more money on reducing the negative effects on the natural environment.

5. Insufficient subcontractors

This particular construction problem is the one that depends the most on the network and recommendations. The number of subcontractors in the market generally is enormous, and it could not be easy to choose one based on the appearance of their work. An effective method of avoiding choosing a contractor that is not reliable is to inquire with your suppliers or vendors for suggestions. Subcontractors you've worked with are also a good way to locate reliable communication.

It is also recommended to verify the licenses of subcontractors and general liability insurance and include yourself as an additional insured under their insurance prior to completing the hiring process.

6. Cash flow issues

As a construction owner, it is required to be able to use cash for various items on a regular basis. This covers payments for subcontractors, suppliers, vendors, and your employees, as well as other suppliers and subcontractors. But, it's very likely that you'll receive a payment for a well-run project only once after the work has been completed.

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Management of funds is a common issue for a lot of construction owners/firms, and the number of issues it could create is worrying. The only solution that can be found for such issues in addition to "getting an ongoing flow of cash" (which may not be possible in certain situations) is to maintain an open credit line for business to cover "worst-case scenario" or to make it through the period of uncertainty between the time your bills are due, and the project is completed and completed and paid for.

7. Shortage of Skilled Manpower

There is a shortage of highly skilled workers for every stage throughout the construction process, which has now become a major problem. Particularly during times of pandemics, crises can cause delays in the planned date of completion of construction projects. The lack of instruction for construction workers hinders the time and quality of construction. Concentrated attention is required to increase the skill and knowledge of construction workers.

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8. Struggle to pass multiple clearances

The successful completion of any project requires multiple permits from various authorised authorities. Electrical power, environmental control protection of the environment, land service, utilisation and so on. are some of the areas in which clearances are necessary. Even if builders complete their work in the timeframe they have planned, delays in getting the necessary clearances could cause a delay in the transfer of the project to the purchasers.