The Most Common Commercial Construction Obstacles in 2023
Commercial construction projects aren’t just scaled-up versions of residential jobs; there’s much more that can go wrong, leading to time delays and cost overruns. In this blog post, we look at the most common obstacles and challenges the commercial construction contractor will likely face in 2023 and how to stay ahead of the curve.
Budget constraints have constantly challenged commercial construction contractors and will continue in 2023. Often, this manifests in situations where the budget is too low for the proposed project, or unexpected expenses always seem to pop up.
One of the keys to avoiding budget problems is to explore alternative financing options before the project begins to have something to fall back on if money gets tight. Also, even if you think you have enough money, it’s wise to find cost-saving opportunities wherever you can, just in case.
Permitting & Regulatory Challenges
Unlike residential construction projects, commercial construction is subject to more permits and regulations, making even a small job challenging.
One way to make the path to completion smoother is by utilizing digital permit management systems and cloud-based solutions to track all necessary documentation. This gives you a streamlined approach to managing compliance and ensuring faster identification of potential problems.
Site Logistics & Access
Another headache many commercial contractors deal with is site logistics and access. These challenges include limited space, site-specific restrictions, and access difficulty. Like permitting and regulatory issues, many software and app solutions exist to streamline the process, whether it’s project tracking and reporting, materials management, or scheduling and communications.
Whether it’s design changes or scope creep, commercial contractors must be aware and prepared to deal with this to prevent delays and cost increases. The best way to deal with this is by having a comprehensive contract before work begins detailing the roles and responsibilities of everyone involved and by having a clear project requirement plan.
Supply Chain Disruptions
Finally, supply chain issues are an increasing problem throughout the construction industry and cause significant problems like delays and skyrocketing costs, thanks to the lingering effects of the pandemic. Whether it’s labor shortages or material costs and availability, a supply chain problem could stop a project dead in its tracks.
It’s key for the commercial contractor to analyze current data to stay on top of materials prices and availability. Also, contractors should constantly tweak their business to improve supply chain efficiency. For example, contractors can consider virtual ordering and automated purchasing processes for better accuracy and less paperwork.
Also, staying abreast of industry trends and the latest technology is crucial to improve efficiency and reduce wait times for materials. The bottom line is that you can’t avoid challenges altogether, but by planning for them, you can minimize their effects and complete your building project on time and within budget.
New Horizon Construction Services is a licensed, bonded, and insured MBE General Contractor in Central Florida. We provide pre-construction, construction management, design/ build, and general contractor services. Throughout our 15-plus years of experience, we’ve built a reputation for excellence by exceeding our client’s expectations across various commercial and public projects. Contact us today and let us get to work for you by calling 407-574-2164 or reaching us online.