Understanding The ABC’s Of Challenges Faced By A Construction Company

Nov 19 2022

Understanding The ABC’s Of Challenges Faced By A Construction Company

The construction sector is positioned for major global expansion due to factors including the decaying infrastructure in the United States and the surge in demand for urban housing and office space in China.

But, well we are not here to talk about global expansion. Here, we are focusing on the niche of challenges that a construction company in the Indian subcontinent faces. 

In terms of economic and industrial importance, the construction sector in India ranks 2nd. Nearly 9% of the nation's GDP is contributed by this industry, which employs over 51 million people.


The top challenges construction company in India faces

The construction industry is one of the most challenging businesses to run. Construction companies have to juggle a lot of balls - from regulatory compliance to managing projects and workers, ensuring safety and quality, and more. 

Here are some of the biggest challenges faced by construction companies today.

Skilled Personnel

At various phases of construction, the availability of trained labor might be a challenge. The problem intensifies and causes delays in the projects' original deadlines.

 A further obstacle to the timetable and quality of the work is the absence of training given to the construction personnel. To increase the workers' skill and knowledge level more quickly, focused attention is required.


Increased Material Costs

Raw materials are becoming more expensive. The primary cause is a scarcity in the sector's material supply caused by a disrupted supply chain. 

Additionally, both the state and national governments are introducing changes to help stabilize the economy. The introduction of an additional tax cess is driving up the price of raw commodities. 

As a result, the cost of building real estate is considerable, which raises its value appraisal. As a result, investors are less drawn to the building industry. Adopting automated and contemporary technology to improve customer satisfaction might be a mitigating strategy.

Preservation of the environment

The preservation of the surrounding area is a must for each development project. It is difficult to prevent soil erosion and deterioration in India.

Floods, droughts, soil alkalinity, aridity, and salt are the primary causes. In addition, the country's pollution levels are still outside what can be controlled.

Major cities' urbanization has lowered the quality of the soil, which has an effect on the ecosystem. Builders and property owners are compelled to implement novel strategies and increase their investments in minimizing adverse environmental effects.


Electricity provision

India is seeing a tremendous rise in the number of real estate enterprises, which is driving up the need for continuous electrical supply. Builders and property owners can have trouble getting approval from the government more quickly.

They are frequently compelled to build captive power units within residential buildings. Such precautions can end up costing a lot of money and requiring laborers with special skills. Additionally, it lengthens the project completion time.


Regulations & compliance

One of the biggest challenges faced by construction companies is regulatory compliance. 

There are a lot of rules and regulations that construction companies have to follow, and it can be difficult to keep up with all of them. Non-compliance can lead to hefty fines or even shutdowns, so it's important for construction companies to have a good handle on all the regulations they need to follow.

Let’s sum it up!

Construction companies have long been struggling with a variety of issues that have made it difficult to keep up with the demand for housing and office space. 

The cost of materials and labor, as well as regulations, have all contributed to the challenges these companies face. In addition, the recent economic downturn has made it even more difficult for construction companies to stay afloat. 

As the industry looks to rebound, it will be important for construction companies to find ways to overcome these challenges.


The construction industry is slowly but surely adapting to new technologies that help with some of these issues, but there are other challenges that remain. 

For construction companies to stay competitive and profitable, they need to find solutions to these challenges.