Top 5 Management Challenges and Solutions

All construction projects present challenges, but commercial ones are exceedingly difficult to pull off while sticking to budgets and meeting deadlines. Here are our top five commercial construction project management challenges and how to solve them.

Key Takeaways

Budget Management

Creating a comprehensive cost estimation, a well-defined order protocol and a contingency fund are crucial for staying on budget.

Project Scheduling

By utilizing the Critical Path Method (CPM) for efficient scheduling, you can set realistic timelines and implement monitoring systems to track progress accurately.

Resource Allocation

Invest in resource planning software with AI to keep the team on the same page and give them flexibility to adapt to sudden changes.

Risk Management

Identify potential risks, develop mitigation strategies and contingency plans, and ensure adequate insurance coverage.

Quality Control

Establish quality assurance protocols, provide continuing training, and get third parties involved for inspections to maintain high standards and avoid mishaps. Now, let’s dive deeper into these challenges and their solutions.

Budget Management

Challenge

Staying within the budget is an ongoing challenge on commercial projects because unforeseen costs always pop up due to design changes, material cost fluctuations, and unexpected site conditions that can jeopardize the project’s financial viability.

Solution

Start with a comprehensive cost estimation, including all the potential expenses, and budget for unforeseen expenses as much as possible. You must regularly reevaluate and update the budget throughout the project to stay on track. Implement a change order protocol to establish a clear change order process and approve modifications as needed. Make sure you document all changes and evaluate how they impact your budget so you can adjust. Finally, establish a contingency fund to cover the inevitable unplanned costs that crop up to prevent them from derailing the project.

Project Scheduling

Challenge

Delays and financial penalties result from missing project deadlines, which can disrupt client operations or lead to project termination.

Solution

Utilize the Critical Path Method (CPM) to schedule and identify the most critical tasks at every stage. This approach prioritizes tasks and allocates resources to see they’re completed on time. Set realistic timelines from the start and consider potential delays and bottlenecks. Many commercial projects fail because planners and developers set unrealistic timelines from the get-go, resulting in subpar work, cost overruns, and unhappy clients. Keeping things on track throughout your commercial project requires constant monitoring. Project managers have a wealth of software to rely on that integrate AI to analyze risk factors, predict potential delays, and analyze patterns to ensure the project stays on schedule.

Resource Allocation

Challenge

Allocating resources like labor, equipment, and materials to keep the project on track and avoid delays.

Solution

Use resource planning software to optimize resource allocation, balance workloads, and ensure timely materials delivery. Commercial construction projects involve teams of people, from planners to contractors, and it’s crucial to ensure everyone is on the same page with efficient communication. Construction-specific programs like Slate and OpenSpace and tools like Asana or Slack facilitate easy communication and keep everyone in the loop.

Risk Management

Challenge

Dealing with weather disruptions, labor shortages, and regulatory changes that threaten to throw the project off schedule or put it over budget.

Solution

Conduct a thorough risk assessment before the project begins to identify potential issues and develop a plan to deal with them. Prioritize risks based on their impact and likelihood to decide how to mitigate them. It’s also important to develop a contingency plan for the highest identified risks, which include alternative schedules, backup suppliers, and emergency response. Finally, it’s crucial to ensure your project is adequately insured to mitigate the financial risks stemming from accidents, delays, or unexpected events.

Quality Control

Challenge

Maintaining high-quality construction standards to ensure customer satisfaction and long-term building integrity.

Solution

Establish clear quality assurance protocols, including regular inspections and testing throughout the process. Also, invest in ongoing training for your construction team to ensure they’re up to date on the latest quality standards. Lastly, consider third-party inspections to provide an objective evaluation of the work. Third parties often catch issues others miss, preventing costly problems down the road. Every commercial construction project presents challenges, some more than others. While few projects are smooth sailing from start to finish, you can give your team the best chance for success by implementing these solutions to deal with the most common difficulties that are bound to crop up.

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 construction services.

We’ve earned a reputation of excellence by exceeding client expectations across a wide range of commercial and public projects. And while we’re based in Orange County, Florida, we can work throughout the United States.

Call us today at 407-574-2164 or click here for an estimate.