The year 2020 has been a one of rapid change. It is more about surviving than thriving due to the COVID-19 pandemic. The construction industry is going through a difficult time due to the restrictions put in place, lack of raw materials and workforce, and disrupted supply chain.
Here are some of the problems the construction industry is facing in 2020.
Retirement and Abandonment Issues
Experienced workers are retiring every day, putting the position of construction companies in danger. With an inexperienced workforce taking over the projects, there may be a significant degradation in the quality of work.
Considering the nature of the construction industry, working on projects without proper training and experience can lead to accidents and injuries on job sites.
Project Delays
The construction industry is facing a lot of project delays. Many construction projects have been delayed due to the shortage of workforce and raw materials, amendments of design, unfavorable weather conditions, delays in supply, and Subaru recall.
Technological Problems
Each contractor uses a different technology, and they provide access to the subcontractors to use the same technology. However, subcontractors may work with various contractors, and they all use different technologies. This transition to technologies is one of the major issues that the construction companies face.
Unfavorable Contract Terms and Ethical Issues
The ethical aspect comes to play because of the high financial risk involved in any construction project. Subcontractors receive contracts with unfavorable terms such as consequential impacts, warranty coverage, and liquidated damage. These pose financial risks and project delays.
Safety Issues
The construction industry involves workplace accidents, slips, falls, and injuries. With high fatality rates in such accidents, it can be difficult to protect employees’ rights.
Payment Delays
Subcontractors are not getting paid on time. They are expected to wait until the project is completed. The foreign policy regulations in many places make workers wait for months to receive their wages or salary. Also, deductions, bank charges, and withholdings are added on their payments.
Cost Related Construction Issues
With the base price of timber, aluminum, steel, and other raw materials on the rise, the construction industry is finding it difficult to meet the expenses.
The issues faced by the construction industry are mostly social and require tact and meticulous planning to handle them efficiently. Are you looking for an experienced construction company? Contact the experts at Proforma Construction in Bay Area today.