ConstructConnect Blog

Pride Month is a reminder for people to be proud of who they are and specifically for amplifying the voice of the LGBTQ+ community. One of the sentiments behind pride encourages us to validate the person we are, whether we share our unique identities with others or not. We spend a lot of time at work, so it’s crucial that our work environment is a place where we can show up and be supported so we can focus on the work, no matter our race, religion, gender, age, ability, etc.

Is your construction firm planning to increase headcount in 2022? That could prove to be a difficult task. According to a recent survey by the Associated General Contractors of America, 88% of construction firms indicated they are experiencing project delays and worker shortages are the second leading cause (61%) cited behind longer lead times or shortages of materials (75%).

Labor shortages are one of the major issues the construction industry is struggling to overcome. For many construction firms, keeping their workforce fully staffed is their biggest challenge. The Bureau of Labor Statistics reports that in March 2022, there were 396,000 job openings in the construction industry, up from 383,000 in January and February.

In construction, late payments are common, and it takes considerably longer for construction businesses to get paid. For construction businesses, the average daily sales outstanding (DSO)—the time it takes to collect on invoices—is 60 days. The general DSO average across various business sectors in the United States is 45 days.

I hate to state the obvious, but if you are planning a new commercial construction project, your work has already begun. Break out your to-do checklist and prepare for what may not be as obvious or simple to calculate. These would be the costs, both planned and unpredictable, involved with bringing a commercial project to life. The steady uptick in costs from year to year has made access to materials, land, and labor a tough commodity. Detailed budget planning and strategy are necessary during preconstruction to bring the bottom line to light before your project hits rock bottom.

Construction companies are in business to do two things: build things and make a profit. So why do so many excel at the first thing but struggle to be profitable?

Networking is all about making new connections and building longstanding relationships. In the commercial construction industry being able to effectively network is a vital skill that as an individual could land you your next job or put your company on the path to your next big project.

“Change is inevitable,” as the old saying goes. On construction projects, a more appropriate statement might be that “change orders are inevitable.” If the mere thought of a change order makes you cringe, it may be time to take a look at tweaking your change order process.

Keeping your construction projects on schedule to meet your completion deadline is no easy task. Adverse weather, costly rework, unavailable resources, and subcontractor default are just a few of the things that can throw your timeline off course. Damages and penalties for not hitting your deadline can ruin your profit and hurt your construction company’s reputation.

As a contractor, when was the last time you reviewed the substantial completion terms in one of your contracts? Sure, you probably know the date set in the contract for work to substantially complete, barring any authorized extensions from justified delays, because that means it’s time to get paid the remainder of the contract amount along with any retainage that was withheld along the way.