Five Challenges of Construction Companies and Ways to Address Each One

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Construction companies in Utah face many challenges no matter the project they take on. If you are not careful and make a series of bad decisions, it can lead to your business’ downfall. It doesn’t matter if you are a new construction company owner or are still in the process of building your own brand. Knowing the common challenges construction companies often face will give you a good head start.

Unrealistic expectations

Of course, your clients would very much like you to finish the project the soonest time possible. But unrealistic expectations such as unrealistic deadlines should be corrected. If you accept a contract that demands you to work twice faster than your usual pace, it can result in poor quality work. It can even hurt your workers’ morale, which can lower their productivity. Make sure to advocate for your workers and explain to your clients that a realistic goal and timeline are a must.

Construction site problems

There are tons of problems that you can encounter even before you start any construction project. Take soil erosion for example. Digging and moving a lot of earth can already impact the land you are building on, which makes it prone to soil erosion. One good way to make sure that you can control erosion is by having a good SWPPP or stormwater pollution prevention plan. Identifying potential construction site problems and anticipating solutions can help you prepare for the worst.

Skilled worker shortage

A construction site won’t be complete without you employing the right talent at the right time. Let’s say that you are handling multiple projects at the same time. You wouldn’t want to lose a client just because you’re short on skilled workers. You also would not want to compromise the quality of your project by splitting your team into two. What you can do is to open an apprentice program for workers who need more experience and improve your training programs.


A negative cash flow

Having a poor cash flow can mean that your business is not in a good position financially. You might be unable to pay your debts in time, or you’re having a hard time obtaining inventory due to your debt to suppliers. One good way to solve this is by making sure that you’ll get paid consistently and on time. Having a regular progress payment schedule is a must to ensure that you have a positive cash flow to support your business.

Constantly changing regulations

Each city, county, state, and even federal regulations are always revised and updated. If you fail to stay on top of each regulation, you might put your business at risk for not following the said regulations. Make sure to stay compliant by getting the latest updates. Turn on automatic updates, follow blogs, and say yes to industry-related publications.

These are five common problems that almost all construction companies will encounter at one point or another. Knowing how to solve these challenges even before they hit your business helps mitigate business risks. Keep this list in mind, and your company can thrive and achieve better success in the future.


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