1. Design vs Actual Building Work

Regardless of the size of the project, every construction project involves many different subcontractors and stakeholders. Architects and consultants will design the outlook and technical design of the project, whereas contractors are responsible for turning the design into reality. Nevertheless, it is common and expected for redesigns to occur, especially if the initial designs do not suit the actual site conditions. This inevitably causes delay in the entire project.

2. Slow Variation Approval Process

Variation orders are also a common occurrence in almost every construction project. However, in order for a contractor to claim the variation orders later, the variation must be given through an Engineer Instruction (EI) or Architect Instruction (AI). Issuing EI or AI requires finding out who will bear the cost of constructing and accommodating the variation orders, which will take some time. Contractors may sometimes provide free services to proceed without EI or AI, but these will result in cost overruns on the contractor’s side.

3. Unrealistic Work Programmes

The project duration estimation is a necessary task of construction project management. This part is usually done by the main contractor (MC) or project management company (PMC) based on an almost perfect scenario, which does not properly reflect the reality of the work done at the construction site.

Improper estimation will impact the subcontractors and the designed work programme. Subcontractors are not engaged at the beginning of the project, but only before the required trade is to be constructed. So the subcontractor’s opinion on the work time estimation may be solicited, but this is not always the case. Most of the time, the party designing the work programme is not the same party executing the work.

As such, when a subcontractor is engaged, they are then pressured into completing the work according to the schedule provided by the MC/PMC. Depending on the subcontractor’s capability and resources, they may or may not meet the deadlines. In this situation, it is highly likely that the project will be delayed.

4. Poor Site Coordination

Due to the presence of various subcontractors of different trades all working at the same construction site, coordination is a critical part of construction management. With good coordination, subcontractors can properly plan their resources and logistics.

However, most of the time, site coordination only happens during weekly site meetings, which may hinder the subcontractors’ schedules and plans. Furthermore, the subcontractor still has to check the project site multiple times to ensure it is indeed ready for them to begin their work, even despite receiving verbal instructions from the main contractor. For a subcontractor, mobilising their resources too early and ahead of the site readiness is costly. They are more likely to wait until the site is actually ready before entering or starting work.

5. Shortage of Skilled Labour

Resource management must be efficient and smooth in order to properly manage construction projects, as resources are, without a doubt, a key factor in the success of a project. Part of this resource management is balancing the workload and remuneration of the labourers. Local contractors have to compete with foreign developers or contractors, not just for projects, but also for skill labour, as the latter usually offer attractive compensation.

With many employers in Malaysia struggling to find skilled employees, the current employees are also burdened with additional workload, which in turn could lead to more employees leaving the company’s workforce due to inability to cope with heavy workload and poor compensation. Eventually, this shortage or lack of resources jeopardises the ability of local contractors to complete projects on time and within budget.

6. Additional Financial Burden

With the recent instability in the world economy, some currencies may not be performing well, and building material prices continue to rise. Both foreign developers and main contractors are requesting for a higher retention amount. Contractors have to wait for the defect liability period to expire before they can receive their profits. Yet, despite all efforts above, contractors are still paying operating and supplier costs, which places additional burden on them.

7. Stricter Requirements

Aside from project management issues, stricter requirements imposed by local authorities on building materials, and stringent regulations on environment, health and safety also contribute to project delay and cost overrun. This is due to the various interpretations and implementations of such laws and regulations that are more likely to lead to confusion, and even incomplete compliance by the contractors. This, in turn, requires remedial measures to be taken, thus involving more parties (such as legal consultants), which subsequently delays the project and incurs more cost during the project lifespan.

About Speedbrick Solutions

Speedbrick Solutions is a provider of cloud-based construction management software. The platform facilitates a more efficient work approach with a modern touch, specifically for construction industry stakeholders. Among the services Speedbrick offers are material procurement and management, revenue tracking and management, subcontractors claim control, and analytics reporting. Speedbrick has served projects over RM18.6 billion and has helped clients achieve up to 3.6% additional profits, making it a formidable player in its field. With smart construction management software and solutions, Speedbrick also helped its clients to save up to 133 hours per month.

Find out more at www.speedbrick.com .