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How to Avoid The Common
Construction Issues
What’s your biggest challenge on your construction projects?
Contractors big and small seem to face the same problems
on project after project. Whether you are a one-man
painting contractor, a small remodel business, or a general
contractor with 20-years of industry experience, these
construction problems have most likely plagued you at one
time or another. Here are the answers you’ve been looking
for to the ten biggest problems facing construction
professionals today.
Lack of Skilled Workers
There is a big problem facing the
construction industry. The
younger generation is being
pushed toward college, and not
vocational trades. Construction
staffing agencies can have skilled
workers ready to work for you
when you need them. The
agencies take care of pre-screening
applicants, which saves you time
and gets you qualified workers
quickly.
Lack of Communication
When things go wrong on a project, it is almost always due to a
communication breakdown along the way. Technology is the
answer to your communication problems. Two-thirds of
Americans own smartphones, so there is a good chance that
almost everyone on your project has one. Using email, text
messages, and construction technology apps on a project can get
information instantaneously to all people on the project in real
time and reduce the slowdowns and speed bumps of a
communication breakdown.
Scheduling
Scheduling can be tricky for even
the most seasoned construction
professional. Once again,
construction technology is
providing a solution for this
common problem. Project
management apps that you can
access from a desktop or your
smartphone or tablet allow you to
visually map out a project timeline.
Unreliable Subcontractors
Many contractors have problems finding reliable subs for their
jobs. If you are in a pinch and need to find a sub, check with the
materials suppliers and vendors that you work with regularly.
They will have the inside scoop, and may have a great
recommendation for a sub. You can also ask other subcontractors
that you have worked with for a recommendation, too. Always
check a sub’s licenses, make sure they carry general liability
insurance, and list your company as additional insured on their
insurance before you hire them.
High Insurance Costs
Contractor insurance is part of the cost of doing business, but that doesn’t mean
you have to overpay for it. You can get lower rates on your contractor insurance
by combining coverage, not letting your coverage lapse, and reviewing your
policies each year for changes that may save you money.
Changing Minds of Homeowners
Homeowners who want changes in the
middle of a project may “forget” about
the requests they’ve made when it
comes time to pay the bill. In order to
protect yourself, your reputation, and
your bottom line; be sure that you get a
signed change order every single time.
Available Cash
You have payments due to subs,
employees, vendors, materials suppliers,
and equipment renters… but you don’t
get paid until the project is complete.
And unless you have enough available
cash flow, this can be a major problem.
Have an open business line of credit to
see you through the tough spots
between bills due and project’s end
Available Cash
Contracts, change orders, materials orders, receipts, invoices, employment
applications, certificates of insurance… you probably have enough paper to fill an
entire trailer of filing cabinets. It’s time to go paperless. A digital solution can help
you stay on track of documents, organized on your projects, and on-time with your
payments. At the very least, scan all documents into your computer and digitally
file/ organize them. Be sure to backup your computer to a cloud service or hard
drive regularly in case you have a hardware issue.
The Blame Game
Nothing ever goes smoothly in construction 100% of the time. When there is a
bump in the road, fingers start pointing. The general contractor blames the sub, the
homeowner blames the general contractor, the project manager blames the owner.
When a worst-case scenario actually occurs, skip the blame game and finger
pointing and get back on track with a builders risk policy. This type of specialized
property insurance covers the project, and all of the principles working on it.
Extreme weather, natural disasters, even theft and vandalism can all be situations
where a course of construction policy can get you back to work without finger
pointing and burnt bridges.
Thank
you

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How to Avoid the Common Construction Issues

  • 1. How to Avoid The Common Construction Issues
  • 2. What’s your biggest challenge on your construction projects? Contractors big and small seem to face the same problems on project after project. Whether you are a one-man painting contractor, a small remodel business, or a general contractor with 20-years of industry experience, these construction problems have most likely plagued you at one time or another. Here are the answers you’ve been looking for to the ten biggest problems facing construction professionals today.
  • 3. Lack of Skilled Workers There is a big problem facing the construction industry. The younger generation is being pushed toward college, and not vocational trades. Construction staffing agencies can have skilled workers ready to work for you when you need them. The agencies take care of pre-screening applicants, which saves you time and gets you qualified workers quickly.
  • 4. Lack of Communication When things go wrong on a project, it is almost always due to a communication breakdown along the way. Technology is the answer to your communication problems. Two-thirds of Americans own smartphones, so there is a good chance that almost everyone on your project has one. Using email, text messages, and construction technology apps on a project can get information instantaneously to all people on the project in real time and reduce the slowdowns and speed bumps of a communication breakdown.
  • 5. Scheduling Scheduling can be tricky for even the most seasoned construction professional. Once again, construction technology is providing a solution for this common problem. Project management apps that you can access from a desktop or your smartphone or tablet allow you to visually map out a project timeline.
  • 6. Unreliable Subcontractors Many contractors have problems finding reliable subs for their jobs. If you are in a pinch and need to find a sub, check with the materials suppliers and vendors that you work with regularly. They will have the inside scoop, and may have a great recommendation for a sub. You can also ask other subcontractors that you have worked with for a recommendation, too. Always check a sub’s licenses, make sure they carry general liability insurance, and list your company as additional insured on their insurance before you hire them.
  • 7. High Insurance Costs Contractor insurance is part of the cost of doing business, but that doesn’t mean you have to overpay for it. You can get lower rates on your contractor insurance by combining coverage, not letting your coverage lapse, and reviewing your policies each year for changes that may save you money.
  • 8. Changing Minds of Homeowners Homeowners who want changes in the middle of a project may “forget” about the requests they’ve made when it comes time to pay the bill. In order to protect yourself, your reputation, and your bottom line; be sure that you get a signed change order every single time.
  • 9. Available Cash You have payments due to subs, employees, vendors, materials suppliers, and equipment renters… but you don’t get paid until the project is complete. And unless you have enough available cash flow, this can be a major problem. Have an open business line of credit to see you through the tough spots between bills due and project’s end
  • 10. Available Cash Contracts, change orders, materials orders, receipts, invoices, employment applications, certificates of insurance… you probably have enough paper to fill an entire trailer of filing cabinets. It’s time to go paperless. A digital solution can help you stay on track of documents, organized on your projects, and on-time with your payments. At the very least, scan all documents into your computer and digitally file/ organize them. Be sure to backup your computer to a cloud service or hard drive regularly in case you have a hardware issue.
  • 11. The Blame Game Nothing ever goes smoothly in construction 100% of the time. When there is a bump in the road, fingers start pointing. The general contractor blames the sub, the homeowner blames the general contractor, the project manager blames the owner. When a worst-case scenario actually occurs, skip the blame game and finger pointing and get back on track with a builders risk policy. This type of specialized property insurance covers the project, and all of the principles working on it. Extreme weather, natural disasters, even theft and vandalism can all be situations where a course of construction policy can get you back to work without finger pointing and burnt bridges.