Construction project delays directly affect your bottom line. According to the Construction Employers Association, “a 10 percent overrun can lead to a $5 million hit to project profitability.” This causes revenue loss, wasted time, and great frustration for everyone working on the project.
Hubexo gives you the perfect solution for handling project delays through field-to-office communication.
What are the main causes of delay?
The results of a 2021 study on the factors of delay in construction works show that all the identified causes for construction project delays are correlated to 4 main factors (which account for 69.18% of the sample variance):
- Supply management – 21.41%.
E.g. Quality control concerns, material shortages, or production delays from suppliers or manufacturers. According to a National Association of Home Builders (NAHB) report, over 87% of builders reported shortages of appliances, lumber, plywood, windows, and doors in 2024 that impacted their deadlines.
- Workforce management – 20.79%.
E.g. Labor shortages, high employee turnover, and lack of workforce flexibility.The most recent AGC workforce survey shows that “88% of construction firms are having a hard time finding workers to hire.”
- Project management – 17.64%.
E.g. Inadequate planning, poor communication, misallocation of resources. According to research from the Project Management Body of Knowledge at PMI and Aberdeen Group, 85% of a project manager’s job is spent communicating/ gathering data. Luckily, with the help of Hubexo’s white-label plan room, team communication has never been more efficient!
- Management of climatic conditions – 9.34%
E.g. Weather, natural disasters, and other external factors. According to the Air Force Institute of Technology adverse weather events (such as flooding and snowfall) delay 45% of construction projects worldwide, costing billions of dollars in additional expense and lost revenue.
What are the costs of construction delays?
The costs of construction project delays lead to:
- Damaged relationships with clients and subcontractors for failing to execute on the agreed-upon timeline.
- Reputational damage and becoming known as ‘that one team privy to late starts.’
- Stress on employees leads to turnover.
How to manage project delays?
To manage project delays, one must be proactive. In today’s digital world, technology is a valuable resource for the project manager. There are many project management platforms out there, but make sure these features are covered:
- A centralized document management platform: This ensures there is no time wasted searching for the correct documents further delaying your project.
- A white-label plan room: Manage your projects, contractors, project address book, and documents all in one place. Create new projects or clone previous projects. Send project messages to your entire team with a single click.
- Branded bid invites: In this industry, professionalism is paramount. Your project management platform should effortlessly allow you to have your company branding on all projects.
- Mobile app access: field-to-office communication is critical to prevent project delays. That’s why having access to the mobile version is crucial.
- API Integration: If you have a diverse tech stack, this feature is important for you. A platform with a range of API integrations allows you to create a unified workflow seamlessly.
Hubexo’s revolutionary project management platform has all the features above, and more. We offer revenue-based pricing because we want to cut your costs and increase your revenue. Book a free demo to learn more.
Do you want to prevent project delays?
Proactive management of construction project delays is a necessity that requires planning. The main causes for delays are issues with: supply management, workforce management, project management, and management of climatic conditions. These result in costs such as: damage to your reputation, employee turnover, and damaged relationships. With the right project management tool like Hubexo, you can prevent project delays before they happen.
Don’t wait for the next delay to impact your bottom line. Take the next step to complete more profitable projects.
Related:
How to Save Time Managing Subcontractors
How to Increase Subcontractor Engagement with One Simple Tool
Why Your Construction Bidding Software Needs Branded Bid Invites
