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Top 6 Challenges Faced by Construction Contractors in 2024

In the multifaceted realm of construction, general contractors and subcontractors such as HVAC, flooring, roofing, and MEP contractors encounter distinct challenges that demand targeted solutions.


1. Material Shortages and Supply Chain Disruptions

   Across the board, contractors face the ripple effects of material shortages and supply chain disruptions. According to the latest surveys, over 80% of specialty contractors cite material scarcity as a significant challenge.

This disrupts project timelines and increase costs. Strategies to manage this include diversifying suppliers base, pre-ordering materials and establishing contingency plans for alternate materials and suppliers.


2. Labor Shortages and Skilled Workforce Challenges

   The construction industry grapples with a shortage of skilled laborers, impacting project efficiency and quality. Reports indicate that nearly 70% of specialty contractors struggle to find adequately skilled workers.

To manage this, investing in workforce development, offering training programs to them and make partnerships with vocational institutions can help attract and increase retention rate of skilled labor.


3. Project Scheduling and Coordination

   Coordinating multiple tasks and managing project schedules emerge as ongoing challenges for specialty contractors. Around 65% of contractors express concerns about project scheduling complexities. 

Using project management software, improving communication among teams and adopting up-to-date construction principles and methods can streamline workflows and enhance efficiency.


4. Safety Compliance and Regulations

Ensuring compliance with ever-evolving safety regulations is a persistent challenge. Nearly 60% of contractors cite safety compliance as a top concern.

Prioritizing safety training, conducting regular inspections and staying updated with regulatory changes can help to mitigate these risks and maintain a safe work environment.


5. Rising Cost Pressures

Escalating costs, including labor, materials and overhead expenses, pose a significant challenge for specialty contractors. Over 75% of contractors express concerns about cost escalation.

Implementing value engineering practices, negotiating bulk material purchases and hiring construction cost estimation services in planning stage of project can help manage these expenses effectively.


6. Technology Adoption and Integration

 Use of technology remains a hurdle for some specialty contractors. Reports indicate that nearly 50% face challenges in adopting and integrating new technologies.

Investing in digital tools like Building Information Modeling (BIM), camera drones for site surveys and advanced project management software can optimize processes and improve project outcomes for contractors.



By acknowledging these challenges and implementing targeted strategies, specialty contractors in HVAC, flooring, roofing and MEP can navigate the complexities of the construction industry more effectively.

Willaim wright

Construction Estimator | Civil Engineer | Quantity Surveyor
Expert in Construction Management, Scheduling and Estimating

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