Businesses operate in a complex and ever-changing industry. Commercial properties are mushrooming in every corner of every city. Unfortunately, not many people are aware of what goes on behind the scenes of a construction company.
Those working for a construction company are aware of the challenges they face every day during their routine jobs. It’s a significant challenge for any construction company to complete a structurally sound commercial building on the designated time and budget. Here are the top five problems that a construction company faces regularly.
Construction companies are one of the most regulated ventures. The government keeps these companies under intense scrutiny. Building codes are restrictive, and licensing and permit requirements are challenging to achieve. Companies must adhere to many different regulations, as unsafe buildings are a significant security risk for every city. However, it’s hard to meet the strict rules and safety standards set by the local and federal governments.
Social and Political Pressures
Social and political pressures pose a challenge to construction companies so much so that projects are in progress for years. Pressure from the local community could delay or cancel a construction project that could devastate a construction company with losses in millions. The political and societal challenges can be overcome by holding meetings with local communities and concerned parties.
Health and Safety Concerns
Commercial construction is one industry that suffers accidents causing fatal injuries. Every day, thousands of companies with millions of employees are working round the clock to meet deadlines. During their work, employees get exposed to different hazards from machinery, falling debris, malfunctioning equipment, electrical shocks, falls, trench, and scaffold collapses.
Apart from the human suffering, financial constraints hit commercial construction companies extremely hard. Some losses from accidents can cost a company millions in compensation to the worker and damage of equipment. Many of these losses can make a significant impact on proper bookkeeping within a construction company.
Construction companies can take different measures to eliminate or reduce the risk of accidents by meeting health and safety concerns. Fatal human loss and financial crisis can be overcome by maintaining high safety standards.
Shortage of Skilled Labor
The biggest asset of any company is its human resource; commercial construction companies are no different in this regard. They must have competent, trained, and highly skilled human capital to keep everything correct.
The shortage of labor is a primary concern for commercial construction companies. To overcome this challenge, the construction company must take steps to work towards employee retention. Employee retention is particularly necessary for construction companies because not many people are willing to get into construction business as the construction work is physically demanding, tough, and sometimes dangerous. Paying better wages could help the company keep its employees for a more extended period.
Construction is one of the toughest industries because the biggest challenge is effective time management to meet deadlines. Simple time management becomes a significant task in construction. A natural weather calamity can rip the project off the ground causing substantial delays in meeting deadlines. Every day a construction site is closed due to bad weather or any other issue. Each day costs the commercial construction company to suffer significant financial losses recorded in bookkeeping.
As construction is involved with other interdependent activities, cohesively forming a cycle to achieve the same goal. This goal is a significant challenge, particularly to the construction business. It is affected by seasonal changes, access issues, accidents, machinery malfunction or breakdown can cause massive delays. Companies can work to improve their time management by keeping a check on the weather forecast and manage the delivery dates for necessary raw materials.
Running a commercial construction company is not easy; it is challenging and complicated. Overcoming the challenges above is vital for a company to maintain its operations while managing to complete the projects on its due date.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.