Construction problems are all too common throughout a project’s life cycle. Project managers tasked with ensuring projects remain on schedule, within budget, compliant with safety regulations, and running smoothly know that it can be difficult with the amount of potential and unanticipated issues that tend to crop up. Here are some of the top challenges and problems in the construction industry.

Among the top construction industry problems is cost overrun, or when a project exceeds its pre-planned budget. A McKinsey study estimates that 98% of large construction projects deal with cost overruns of more than 30%. It’s often caused by poor cost estimates during the planning phase, design change requests, and payment delays.

The result: lowered profit margins, material shortages due to the lack of a remaining budget, damage to the construction firm’s reputation, and delays, which is in itself a prevalent industry issue.

The same McKinsey study also states that 77% of construction projects are at least 40% late. Some contributing factors can’t be controlled, such as the weather, the nationwide labor shortage (caused by recessions), and equipment failures. But there are definitely factors that can be prevented, including scheduling issues, project conflicts, and incorrect data.

Even the most diligent and conscientious project manager is prone to human error. One of the best ways to mitigate risk is to reduce the need for manual management through the use of technology, but the industry’s willingness to adapt can be a problem as well.

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