Construction project delays directly affect your bottom line. According to the Construction Employers Association, “a 10 percent overrun can lead to a $5 million hit to project profitability.” This causes revenue loss, wasted time, and great frustration for everyone working on the project.
Hubexo gives you the perfect solution for handling project delays through field-to-office communication.
What are the main causes of delay?
The results of a 2021 study on the factors of delay in construction works show that all the identified causes for construction project delays are correlated to 4 main factors (which account for 69.18% of the sample variance):
- Supply management – 21.41%.
E.g. Quality control concerns, material shortages, or production delays from suppliers or manufacturers. According to a National Association of Home Builders (NAHB) report, over 87% of builders reported shortages of appliances, lumber, plywood, windows, and doors in 2024 that impacted their deadlines.
- Workforce management – 20.79%.
E.g. Labor shortages, high employee turnover, and lack of workforce flexibility.The most recent AGC workforce survey shows that “88% of construction firms are having a hard time finding workers to hire.”
- Project management – 17.64%.
E.g. Inadequate planning, poor communication, misallocation of resources. According to research from the Project Management Body of Knowledge at PMI and Aberdeen Group, 85% of a project manager’s job is spent communicating/ gathering data. Luckily, with the help of Hubexo’s white-label plan room, team communication has never been more efficient!
- Management of climatic conditions – 9.34%
E.g. Weather, natural disasters, and other external factors. According to the Air Force Institute of Technology adverse weather events (such as flooding and snowfall) delay 45% of construction projects worldwide, costing billions of dollars in additional expense and lost revenue.
