The Construction Industry’s “4 Fatal Flaws” and How to Avoid Them
the Construction industry's historic approach to project management best-practices, and often even business in general, highlights the importance of building strong relationships based on transparency, communication, and quality workmanship.
To those otherwise not accustomed to the challenges of dealing with pervasive industry fragmentation and chronically misset expectations, the construction client experience is often lacking - to say the least.
In this article, I highlight a handful of key issues to watch out for as a project owner, which I’ve termed Construction’s “4 Fatal Flaws”. Identifying these issues early will save not only significant money and time, but also avoid months of headache and frustration.
Fatal Flaw #1 : Rushing Into Things
Fatal Flaw #2 : Lack of Processes and Structured Systems
Fatal Flaw # 3 : Lack of Transparency to Project Owners
Fatal Flaw # 4 : Forgetting About Customer Service and Client Experience
Fatal Flaw #1 : Rushing Into Things
Rushing into construction projects without proper planning and preparation can lead to a number of negative outcomes that are almost wholly avoidable with proper planning, including:
Poor Quality: Rushing construction work can result in mistakes and shortcuts, leading to a lower standard of work and increased need for repairs.
Cost Overruns: Without proper planning, a construction project may experience unexpected problems and delays, resulting in additional expenses.
Safety Hazards: Hurrying construction work can lead to unsafe working conditions, putting workers and the public at risk of injury or death.
Delays: Rushing into a construction project without adequate preparation can lead to delays in completion, which can result in additional costs and lost income.
Legal Issues: Construction projects that are rushed may not comply with building codes and regulations, leading to legal and financial consequences.
Reputation Damage: Poor quality work and safety hazards can harm an owner's reputation and make it more difficult to complete future work.
Rushing into construction projects can have serious consequences, making it important to properly plan and ensure that your contractor is qualified and prepared before starting any construction work.
Fatal Flaw #2: Lack of Process and Structured Systems
Construction projects that lack structured processes and systems for project management often fail to produce successful outcomes, and can instead lead to severe negative consequences for the owner, including:
Inefficient Resource Management: Without a clear process for managing resources, construction projects can experience waste, inefficiency, and increased costs.
Poor Quality: Lack of structure can lead to mistakes, shortcuts, and subpar workmanship, resulting in lower quality construction.
Delays: Projects without clear processes and systems are more likely to experience delays, causing inconvenience and additional costs for clients.
Budget Overruns: Poor project management can result in cost overruns, as expenses are not effectively controlled and accounted for.
Safety Concerns: Lack of structure in project management can lead to neglect of safety measures, putting workers and the public at risk of injury or death.
Legal Issues: Unstructured projects are more likely to violate building codes and regulations, leading to legal and financial consequences.
Decreased Productivity: Inefficient project management can lead to lower worker morale, decreased productivity, and increased staff turnover.
Structured processes and systems for project management are essential for ensuring the success and efficiency of construction projects. They help minimize waste, reduce the risk of mistakes, improve quality, and ensure the safe and timely completion of projects.
Fatal Flaw #3: Lack of Transparency to Project Owners
Failure to maintain transparency with project owners in the construction industry has definitively negative impacts. Without transparency, these risks are ever-present, and can occur at nearly any stage of the project life-cycle:
Loss of Trust: Lack of transparency can damage the relationship between construction companies and project owners, leading to mistrust and decreased confidence.
Cost Overruns: Without transparency, construction companies may not accurately estimate costs, leading to budget overruns and financial strain for project owners.
Delays: Project owners may not be informed of potential delays, causing inconvenience and additional costs.
Quality Issues: Lack of transparency can result in poor workmanship, inadequate materials, and lack of attention to detail, leading to subpar construction quality.
Legal Disputes: Project owners may take legal action against construction companies for breaches of contract, safety violations, or subpar workmanship.
Decreased Productivity: In the absence of transparency, project owners may not be aware of potential roadblocks and obstacles, leading to decreased productivity and inefficiency.
Reputation Damage: Failure to maintain transparency can harm a company's reputation and make it more difficult to secure future contracts.
Maintaining transparency with project owners is essential for the success of construction projects. Clear and open communication helps build trust, improve decision-making, and ensure that projects are completed on time, within budget, and to a high standard of quality. Establishing proper communication protocols early can dramatically improve your project outcome.
Fatal Flaw # 4 : Forgetting About Customer Service and the Client Experience
With looming deadlines, ever-increasing costs, and major regulatory hurdles it is common for contractors to overlook what the build process feels like for a client, who is not necessarily an industry expert. Construction projects with contractors who neglect customer service and client experience can face several negative consequences , including:
Loss of Repeat Business: Poor customer service can lead to dissatisfaction, causing clients to seek out other contractors for future projects.
Negative Word-of-Mouth: Poor client experience can result in negative reviews and word-of-mouth recommendations, damaging a company's reputation and making it more difficult to secure new business.
Legal Disputes: Neglecting customer service can result in legal disputes, as clients may take legal action against contractors for breaches of contract or subpar workmanship.
Decreased Productivity: Poor client experience can lead to decreased productivity, as clients may not provide the necessary information, materials, or support needed to complete projects.
Financial Losses: Poor customer service can result in decreased profits, as dissatisfied clients may refuse to pay for subpar work or seek compensation for damages.
Missed Opportunities: Neglecting customer service and client experience can cause contractors to miss out on potential business, as clients may choose to work with more customer-focused contractors.
Providing excellent customer service and creating a positive client experience is essential for the success of construction contractors. By putting the needs of clients first and delivering high-quality work, contractors can build strong relationships, secure repeat business, and establish a positive reputation for the industry.
By remaining vigilent of Construction’s “4 Fatal Flaws,” project owners and contractors will experience dramatically improved outcomes that can result in mutual cost savings, increased efficiency, improved work quality, reduced risks, and a more pleasant build experience for all parties involved.
Contact us to learn how we can help you to avoid these common industry missteps and improve your construction project experience today!
Written by Brandon Torrellas