Why do construction projects fail?

Apr 09 2022

Why do construction projects fail?


When it comes to a construction project, several factors contribute to the perfect execution of the project. But sometimes, even the most well-planned projects fail. Have you wondered why?  A successful construction project needs the perfect balance of all the factors. Behind every successful endeavor, there is an adverse range of expertise, including on-site laborers, engineers, highly skilled architects, & project managers.

The execution of a successful construction project is always challenging. Even though you take care of each of the things mentioned above, some factors are not in human control, such as climatic or environmental factors and traditional resource-related challenges. If these things are not in sync, the construction project will fail.

Today, Ahmedabad’s one of the fastest-growing construction companies, Hindustan, discusses why a construction project fails that will help your decision-making.

Every construction project is unique and requires a different strategy each time. Construction projects are cost and time-driven projects. The dependency on resources also plays a crucial role in the uniqueness. These resources are –

Human Resources: - Contractors/sub-contractors, architects, engineers, suppliers, manufacturers, workers, etc.

Non-human Resources: - Solid materials, equipment, machinery, etc.

Things needed to be considered: -

Get to know about the key things that need to be taken care of when Ahmedabad’s one of the fastest-growing construction companies, discusses why a construction project crumbles.

This uniqueness also includes the external influences & changing requirements such as technological upgrades, financial restrictions, market volatility, climatic changes, etc. Before project initiation, it is always wise to consider a few necessary elements like resources, potential risks, safety, environmental impact, time & budget.

Causes of construction project failure: -

  • Lack of project leadership: -  

As a construction project is not a single but a combination of multiple executions, a strong leadership is essential to manage these various executions. The project leaders must have expertise in managing the situations and the shortcomings. If they cannot make the right decisions at the right time, it can have severe repercussions on the project’s progress. The lack of supervision can lead to minor and even sometimes some major errors and disagreements, which will ultimately slows down the progress of the project or maybe stop the progress.

Leading an entire construction project is not just making sure that the project is finished. From keeping stock of the raw materials used, the equipment hired, human resources like the number of laborers, their efficiency, their salary, etc., to external influences like government approval and environmental factors, the leaders must manage everything and overcome the challenges which gives shape to the vision of the project

  • Poor project planning: -
    Proper planning is something Ahmedabad’s one of the fastest-growing construction companies; Hindustan is an expert in.

A construction project is not done spontaneously. An Architect or an Engineer visualizes the entire project in their mind before preparing the blueprint. Then the whole project is broken down into multiple parts, and the work starts on each part. One of the most prominent reasons behind the failure of a construction project is none other than poor project planning. The factors that need to be put effort into are as follows: -

  • Project’s scope
  • Project work breakdown structure
  • Task dependencies
  • Project resource schedules
  • Risks (Financial/ Resource-related)
  • Project procurement/delivery schedules
  • Site surveys & logistics

Sometimes, even though all the steps mentioned above in the planning process are done, keeping up with them through the entire construction project is as important as making them, and using conventional tools can act as a barrier because updates are not available on time, miscalculations in the work breakdown structure can create problems in keeping up with the changing marketing situations which can turn into procrastination.

  • Inaccurate resource capacity planning: -

Hindustan stresses that Resource capacity planning is one of the most crucial parts of construction project management. Not having proper foresight about the capacity vs. demand gap leads to shortage or excess resources, resulting in improper resourcing treatments. The below-mentioned points will help you to understand the capacity vs. demand gap more clearly –

The capacity vs. demand gap is the process of calculating how many resources can be provided and how much is required; ill calculation of this process leads to-

  • Resource shortages, restricting the project’s progress.
  • Resource overallocation which leads to lower productivity
  • Poor quality deliverables
  • Increased project cost

We know that some of you might be thinking about how overallocation affects a construction project. The shortage of resources can pause the process, but we can use just the amount we want if the resources are available excessively. But things are not as easy as it seems.

Allocating all the critical resources to a single part of a project can affect the mobility of the other aspects.


  • Inefficient resource utilization & tracking: -

As we discuss resources, allocating resources is not enough; productivity needs to be tracked appropriately. If the productivity is not being followed, it can delay the project timeline, which ultimately hampers the profit margins.  Resource tracking helps the construction managers keep up with the profit and foresee the shortcomings that can be eliminated by taking proper action.

  • Failure in forming a contingency plan: -

Having a plan B is always beneficial. A contingency plan is just like a backup plan. It is something that Ahmedabad’s one of the fastest-growing construction companies has when it discusses why a construction project fails. Construction projects are vulnerable to certain external factors that are not in human control, such as climate change or environmental issues. Complex construction projects with a tight deadline can best mitigate through a contingency plan like insurance plans, a contingent workforce, etc.

  • Cost overruns & schedule delays: -

As we all know, a specific time is allocated to a construction project to be finished. If the project gets delayed, the cost also exceeds the allocated budget, which is a pain point. It is caused due to unexpected changes in scope or estimates because of incompetent resource allocation. But resource allocation is not always the reason; delays can occur for weather conditions and machinery failure.


Conclusion: - 

In conclusion, a good construction company must possess the qualities to overcome the above discussed points. Being one of the most trusted construction companies in Ahmedabad, Hindustan efficiently handles the entire construction project with proper precautions for every major to minor shortcoming(s).

If you are looking for a company that can efficiently execute your construction project, Hindustan, one of the most trusted construction companies in Ahmedabad, should be your next stop.