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August 20, 2021

Issues with the Quality of Construction Operational Systems and Their Affect on Project Outcomes

The built environment (structures) as produced by the construction industry greatly affects the economy, society and the environment, it influences, to some degree, defining the quality of our daily work-lives. The built environment directly or indirectly is a major contributor to global warming, air, water and land pollution and waste generation, to name a few. Some of the problems with this industry is the fact that it involves multiple stakeholders with diverse interests, there is high industry fragmentation, high levels of competition (low bid preference) with low profitability, propensity for risk transfer, one-of-a-kind- projects, unstable workforce, etc. Construction lags behind many of the other industries in the adoption of innovation and technology, which leads to improved productivity, lower cost and safer projects.

At the operational level, by virtue of the contracts that a general contractor (GC) or construction managers (CM) sign, they take on the obligation of completing the project at the agreed upon time, the specified level of quality and within the stated price. To that end, the GC or CM must assign capable, knowledgeable and motivated staff to oversee the construction activity on site. They must also ensure that they engage reputable organizations along the supply chain capable of operating cooperatively, efficiently as well as effectively in order to meet the project’s contractual obligations. This means that every partner (subcontractor) and vendor (supplier) along the supply chains must have processes, practices and procedures as well as people who are able to produce the required output within the stated requirements.

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