ADDRESSING CHALLENGES
IN TODAY ’ S CONSTRUCTION INDUSTRY
Taking on the mantle of an LBE in today ’ s economy is daunting enough , but what about difficulties like supply chain disruptions , skilled labor shortages , and rising materials costs ? While difficult to overcome , these hurdles are not insurmountable .
One of the biggest challenges to subcontractors relates to construction project delays , which are most commonly caused by supply chain disruption . It ’ s estimated that the construction industry loses nearly $ 208 billion annually due to delays and supply chain disruptions . On an average $ 750,000 build , it can cost a contractor about $ 670 for each day the job is delayed 1 . After one week , this equates to an unrecoverable loss of $ 4,690 .
The supply chain is fragile and , as we witnessed on a massive scale during the pandemic , can be broken by national and regional emergencies , natural disasters , transport issues , or unexpected changes in regulations . The nature of the construction work itself , including weather impacts , changes to project scope , design , and budget adjustments , can also contribute to supply chain delays .
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