Growth in construction slowed during the economic slowdown but has been slowly recovering and that trend is expected to continue. Still, now is not the time to sit back and relax but to get out there and not only survive but thrive. Because margins are tighter, this is the time to face challenges and address issues in advance so a business can grow successfully. Looking at some challenges that contractors can face may be helpful, including services, planning and continuing education at contractor school.
Money Is Frequently the Big Issue
One of the major reasons projects can stall out is a lack of funding. Sufficient capital for a project is critical. Problems, such as zoning or planning commission delays, require foresight. Contractors know that when a project gets delayed costs go up, particularly in supplies, and additional manpower might be needed to get a project back on track. Be cautious of undercapitalization because unforeseen problems can cause bad decisions. Ensure that sufficient capital is available to allow for slowdowns and unforeseen events until draws are available.
Coping With Weather Conditions
Contractors certainly cannot be responsible for adverse weather conditions, particularly in areas that have heavy rain, prolonged snow or sleet. Adverse weather conditions can result in construction delays, cost overruns and missed deadlines. Whether a construction project is commercial or residential, renegotiating the financing for the project or taking out an additional loan to cover the delay may be necessary. Making advance plans if a delay is expected can be a good idea to avoid wasting time and accruing additional costs.
Keeping an Eye on Current Building Trends
Smart contractors are always looking for new clients to work for when the current building project is completed, and this is one of the construction industry challenges in 2016. According to a survey conducted by a design and construction magazine, 56.7 percent of survey respondents saw an uptick in revenues in 2015 over the previous year, and 59.9 percent are optimistic about increasing revenues in 2016. Multifamily dwellings were listed as the sector most active as Baby Boomers relocate toward rental housing. The second most active sector was in health care with a good to excellent rating. This was followed by office interiors, data centers, education facilities and industrial buildings such as warehouses. By keeping an eye on trends, contractors can focus on finding projects in areas where building is at its height.
Focusing on Services
Looking at the big picture when it comes to a construction project can sometimes get overlooked. Not having services in place on schedule can cause construction delays. That, in turn, costs money. Being proactive when working with service and utility providers to solve problems and push installation can help avoid delays and result in staying on schedule.
Plan and Plan Again
Some construction projects fail due to inadequate planning, miscalculating the number of workers needed to finish on time or cash problems. Always have a detailed plan in place and don’t be hesitant to make changes when necessary. Don’t take on a job you know you may not be able to handle, and make your goals realistic. This is the best way to guarantee the successful completion of a project.
Keeping Up With Contractor School
A great deal of effort and expertise goes into the building of a residential or nonresidential project. Handling potential problems and planning ahead can lead to the successful completion of a project. Being proactive when it comes to taking your continuing education contractor classes is also helpful. Ph.D. Contractor Academy lets you take your required courses conveniently online. When you pass, you can download your completion certificate, and we mail the results to your licensing board so you can renew your license with no hassle. Browse courses by state to find what you need to complete the requirements in your area.