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Challenges in Construction Industry

Construction Manager faces many challenges that stem from different sources. Most of these construction challenges can have an impact on project success.

The construction industry faces challenges through directly, indirectly and peripheral activities. Construction issues include workforce considerations, safety, time constraints, and the changing nature of the work itself.

The construction manager must encounter the most common challenges such as Time Management (Minimizing delays), Budget Management (Making accurate estimates & managing costs), People Management (Motivating Workers) and Compliance (Staying on top of regulations).

Non-construction challenges that Construction Managers face that are part of the business landscape include legal issues, government regulations, environmental concerns, and socio-political pressures. A good construction manager can master obstacles gain a competitive advantage.

The construction manager should transform risks into opportunities and also understand the business, legal and social aspects of construction.

Excellent CM proactively manages operations to achieve the project’s quality, cost, time, and scope requirements.

Challenges in Construction Industry

These are common problems in construction projects face currently.

Construction Issues

  • Rising Wages Costs
  • Materials & Supplies Costs Rising
  • Productivity
  • Time delay
  • Capital equipment
  • Inflation
  • Delivery Time of materials, supplies, & equipment
  • Government restraints
  • Design schedule
  • Construction Schedule
  • Availability of Materials
  • Quality of Supervision
  • Lack of Skilled Workers
  • Quality of Design Criteria

Environmental Pressures

  • Erosion & Sedimentation Control
  • Wetlands & Parklands
  • Lead Abatement
  • Asbestos
  • Toxic waste, PCBs’ etc.
  • Noise


  • Public Involvement in Planning, Design and Construction
  • Civic/Community Groups
  • Advisory Boards

Legal Pressures

  • Claims Avoidance, Support, and Mitigation
  • Liability
  • Fiduciary Duty
  • Government Regulation
  • Codes and Permits
  • Labour and Safety Laws

The success of a construction project is judged by meeting the criteria of cost, time, safety, resource allocation, and quality as determined by the owner. The purpose of Project Management is to achieve goals and objectives through the planned expenditure of resources that meet the project’s quality, cost, time, scope, and safety requirements. The Construction Manager must control, deflect, or mitigate the effects of any occurrence or situation that could affect project success.

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