Content Directory Construction projects are often victim to pitfalls that can be avoided with a solid planning process. Coupled with the fact that construction firms are often delivering several projects at once, project planning and support is often the difference between success and failure. Here, we discuss the top five challenges that SME construction firms […]
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Content Directory
Construction projects are often victim to pitfalls that can be avoided with a solid planning process. Coupled with the fact that construction firms are often delivering several projects at once, project planning and support is often the difference between success and failure.
Here, we discuss the top five challenges that SME construction firms face when navigating new projects.
1. Poor Communication
Internally, poor communication between departments, teams and across each trade can de-rail even the best planned project. Good communication channels can prevent minor issues escalating, and finding a channel that works for your team is imperative. Many construction businesses employ the use of industry specific software such as CH4B Expert Partner, SimPro, whose service management software is designed for trades. It streamlines operational workflows such as job quoting, scheduling, asset tracking, customer management, project management, reporting and more.
There can also be a huge disconnect between on-site workers and those who are office-based. For example, on-site workers are expecting a delivery of materials crucial to continuing work. The office has been contacted to advise of a delay, and they then send an email to the onsite team. The on-site team don’t check emails on-site, and a day is wasted due to poor communication.
Externally, good communication with clients is imperative. Manage expectations with realistic project timelines and milestones, and ensure that you have a contingency for any delays that may occur.
Daily, weekly and monthly goal reporting can help to keep everyone abreast of the latest project developments and milestones,
CH4B can work with you to develop processes to improve communication, and build a system that will ensure successful project communication.
2. Financial Constraints
It’s well documented that poor cash flow can be very problematic within the construction industry. Having a steady stream of funds is crucial to paying employees, suppliers and subcontractors (not to mention year-round commitments such as VAT, corporation tax, National Insurance and so on).
Fluctuating material costs can also have a huge impact on overall project costs. The Department for Business and Trade reported that in 2024 the cost of pipes and flexible fittings increased by over 20%, and ready mixed concrete by over 11%.
CH4B tip: Regularly review project budgets to account for fluctuating material costs. SimPro’s software can streamline this process for you.
Invoicing clients on-time is crucial. If you are consistently suffering from late payments from clients, CH4B Expert Partner Satago can automate invoicing, reducing late payments and cash flow issues. Athena Collections help businesses recover debts.
CH4B has a wealth of resources available to members-only, such as financial templates and forecasting tools. Our guide ‘Balancing The Books’ is accessible to all and is packed full of advice on how small businesses can effectively manage finances. Our expert Business Advisors can also support you through this process, and you can book a free Taster Strategy Call to explore this further.
3. Labor Shortages
The exit of skilled workers since Brexit, changes to apprenticeship schemes over the years and a supply and demand gap have created the perfect storm in the UK construction industry. It’s simple, there are not enough skilled workers and this can have a huge impact on project efficiency.
CH4B’s guide to Building a Workforce for Success can help to understand how to attract and retain top talent. Our NLP qualified business coaches can help forward-thinking construction business leaders develop a strategy that will enable businesses to triumph in the face of challenges. Book a complimentary Taster Strategy Call to find out more.
Consider partnering with recruitment experts to search a wider pool of talent, such as CH4B Expert Partners SafeHR and Profile Resourcing.
CH4B tip: upskill your existing workforce and implement training programs to retain and develop your team, ensuring long-term success. CH4B and Expert Partner The Bank of Knowledge can work with you to implement this approach.
4. Inadequate Risk Management
Developing a comprehensive risk management plan will help to minimise risks and the impact they can have on successful delivering the project. From health and safety concerns to unexpected poor weather conditions, there is huge scope for construction businesses suffer the impacts of poor risk management.
Risk management plans and assessments, and specialist software can help construction businesses mitigate risks. Regular site inspections can help catch potential issues early on.
CH4B can help you build a risk averse strategy for your business, and our Expert Partners Worknest can advise further on specific health and safety issues, and Kinhert on compliancy.
5. Structure and Accountability
Who is accountable when a deadline is missed? Or when the project scope creeps? Or when compliancy and quality standards are not met?
Did you know that having a business plan increases your chance of success by 30%? Yet only 35% of businesses finish writing a business plan? (BusinessDasher, 2024).
Failure to adhere to building and environmental codes of conduct can leave construction businesses in hot water. A general lack of structure within a construction business can have an immeasurable impact on each project. Combat these challenges by creating a structure for each project that includes;
Construction businesses should consider putting processes into place at an organisational level so that every project has the best chance of success:
Take the next step towards success with CH4B
Partner with CH4B to create a risk-proof project plan for your construction business. Our experts and partners will help you tackle these challenges head-on, so you can deliver projects on time, on budget, and with confidence.
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