Why do three quarters of all construction projects run past deadline?

According to “Climbing the Curve”; KPMG’s global construction survey, three quarters of all construction projects run past deadline. But with such a high statistic, what can the industry do to help keep progress on track?

Why do 75% of all construction projects overrun?

Every business operates with deadlines, but the construction industry faces unique challenges that can make project timelines more flexible and susceptible to complications.

Construction projects are often accompanied by disputes and unpredictable factors like weather conditions, adding further complexity to meeting deadlines.

Managing paperwork becomes a significant issue as even the simplest construction projects involve multiple suppliers and subcontractors. Poor communication among stakeholders often leads to disputes, and delays in reconciling paperwork can escalate these disputes.

The extensive paperwork involved in construction projects, including complex processes like payment applications, can easily bog down a project. Disputes may arise over various aspects such as materials, payments, time on site, and delivery.

It is essential for all parties involved to have a clear understanding of their rights, responsibilities, and payment terms.

A survey conducted by Arcadis in 2015 revealed that poor contract administration is the leading cause of disputes in the construction industry.

Skill shortages

Skill shortages exacerbate the situation, with a significant percentage of businesses struggling to attract qualified craft labour and lacking planners and project managers, according to KPMG. Additionally, weather conditions are beyond anyone’s control but can have a substantial impact on construction deadlines. Adequate planning is essential as adverse weather can cause significant downtime on a construction site.

Given the unique complexities of the construction industry, it differs from other sectors, particularly those based in offices or factories. However, with meticulous planning and improved communication, it is possible to bring efficiency, organisation, and order to this potentially challenging area of business.

Planning and project management

Effective project planning is crucial in the construction industry. The plan must strike a balance between flexibility and a reasonable construction timeframe that satisfies all stakeholders, including clients, architects, main contractors, and subcontractors.

In addition to a well scoped and flexible plan that accounts for external factors such as weather and skills shortages, proper communication and coordination play a huge role in ensuring collaboration of all resources.

Contract management software solutions

Construction contract management software solutions are invaluable tools in the construction industry for streamlining administrative tasks and facilitating effective communication among stakeholders. One such solution is Contract Bee, a collaborative cloud-based platform specifically designed to alleviate the administrative burden and enhance contract management processes.

With Contract Bee, construction businesses can efficiently manage contracts, ensure compliance, track project timelines, and ensure effective communication between clients, architects, contractors, suppliers, and subcontractors.

The software simplifies the creation, storage, and retrieval of contracts, making it easier to manage the numerous agreements involved in construction projects. By centralising all contract-related information in a secure cloud-based platform. Contract Bee eliminates the hassle of searching through stacks of paperwork or digital files, saving valuable time and minimising the risk of misplaced or outdated documents.

Effective and collaborative

The collaborative nature of Contract Bee fosters seamless communication and collaboration among project stakeholders. Through the platform, stakeholders can access and share contract documents, track revisions and updates, and receive real-time notifications and alerts regarding important milestones, deadlines, and changes.

This improves transparency and ensures that all parties are on the same page, reducing the likelihood of misunderstandings, disputes, and delays.

Moreover, Contract Bee offers features that facilitate efficient contract administration, such as automated reminders for deadlines, integrated approval workflows, and document version control.

The software streamlines the application for payment process, enabling swift and accurate invoicing, payment tracking, and reconciliation.

By automating these tasks, Contract Bee minimises errors, speeds up processes, and ensures that contractors and suppliers are paid promptly for their work, improving overall satisfaction and fostering positive vendor and supplier relationships.

In addition to its contract management capabilities, Contract Bee can generate comprehensive reports and analytics, providing valuable insights into contract performance, vendor performance, and project milestones.

These insights enable businesses to identify areas for improvement, optimise resource allocation, and make informed decisions to enhance project efficiency and profitability, thus helping to ensure construction deadlines are always met.