It’s no secret that in the construction industry one of the main frustrations is the current lack of skilled workers. In 2023, the construction sector had an average of 377,000 open jobs per month, indicating a significant and persistent demand for highly educated people. However, this shortage is not the only thing affecting developers and investors alike. Many general contractors are seeing shrinking resources, longer material lead times, and signs of subcontractor failure, all contributing to critical project delays and failures. In fact, business bankruptcy filings in the United States increased by 40.4% in 2023 compared to the previous year, indicating financial instability among subcontractors and other small businesses.
Getting back on track
To combat these problems, it is essential that contractors and developers make a change at the first sign of pressure and reorient their projects back on track to avoid the possibility of failure. Some key actions to mitigate risk include:
- Request an in-depth HR and financial report of subcontractors and vendors showing signs of concern. This will increase the emphasis on skilled labor and help validate their ability to meet your labor needs in the future.
- Coordinate with other contractors on the job site to temporarily share labor resources on a rotating schedule, thus driving the shortage of skilled tradesmen in a particular task or section of construction.
- Hire another subcontractor to supplement labor resources to focus on a single critical paththus alleviating choke points or other project delays.
- Consider a full project takeover of a contractor or partner accustomed to working in problematic or complex scenarios.
Complement of solutions with focused skill and quality
Additional labor focused on a critical path can be one of the easiest ways to get a project back on track, but how can you ensure that another supplier won’t bring their own problems and create more delays? It is essential to select a partner who has proven results, an adaptable approach and the ability to work in difficult or unusual circumstances. Additionally, it is critical that the additional labor company also has the resources available to focus on tasks that require immediate attention, providing clear strategies and frameworks for risk mitigation, material procurement, and overall project management . Focused coordination and accurate communication are key in sensitive situations, and any potential partner must also be able to provide exceptional back-of-house project monitoring and management.
When to consider total acquisitions
There are certainly situations where issues are beyond the scope of GCs, vendors, and other subcontractors on the job, ones that require a comprehensive solution to resolve drastic issues. A decrease in workplace resources as well as an apparent decrease or lack of quality of work can be a problematic combination, especially when combined with other problems stemming from financial problems that lead to stoppages or failures. A major problem in the workplace can also bring a project to a halt, even more so when the situation requires specialized resources to mitigate the problem. If these and other issues are causing your site contractors to be beyond recovery and unable to secure critical equipment, handle complex tasks, or meet milestones, it may be time to consider a full takeover of the project of a true expert in space.
A path to project success
Power Design Inc. has created a division specifically focused on supporting projects that need critical change to get back on track. The Special Operations Division is made up of more than 320 multi-professional and highly skilled resources, capable and ready to deploy nationwide to any phase of construction within 72 hours after an in-person consultation within the first 24 hours. This on-site team is supported by a range of resources including project management, engineering, procurement, pre-fabrication, large link capabilities and last mile delivery, all combining -se in a seamless and adaptable approach that has been successfully executed in 52 projects so far. Learn how to Power Design can guide any project through any issues and remove obstacles, getting your build back on track as quickly as possible. Start your road to project success today by sending an email [email protected].
