Failure In Construction Industry

The construction industry is huge in size and significant in the role it plays in the economy but in recent years there has been an increase in construction company failure. Studies have been conducted to address and control the industry’s problem in developing countries. Dun and Bradstreet Corporation (1986), have identified the major causes of business failures; they are economic factors, inexperience, poor sales, expense, customer, fraud and neglect, asset and capital, and disaster. They find the most significant failure cause is economic factor. Within the economic factor category, there are five subcategories that are bad profit, high interest rates, loss of market, no customer spending and no future.

Arditi et al. (2000), attributed business

Otherwise you may find yourself struggling. You must picture what project success looks like from the start and don’t lose focus of it. Hence, if you don’t have a clear understanding at the earliest stage of the process, you are making things more difficult for yourself. Conduct meetings with all involved members to discuss their expectations on cost, time and product quality. Plan how you will execute your tasks in order to meet their expectations.

• Poor Documentation and Tracing:

This is the role of the project manager. Updating programme and milestones is how you are going to know whether you meeting targets. Good documenting and monitoring lets the project manager identify where resources needed more to finish a project

When targets or goals are not met to standard, there should be consequences. Rank tasks by importance and assign them to the most skilled individual.

• Inexperienced Project Manager:

Project management has a lot of responsibilities in a project. You need to appoint people to management positions who have matching qualifications and experience. In some circumstances, and maybe more often than not, inexperienced projects managers are given projects. They may be very skilful of running projects, but the aim is to keep them at a level where they can succeed. Or else you will lead them up for failure. However, there will be always challenges, but just don’t make it beyond their reach.

• Inadequate Estimations:

Sometimes you will find your cost estimates are completely off or under estimated. We all know that when you run out of resources, you won’t be able to carry on with your task and that will result to the project stops or fail. Avoid this by identifying the shortage of resources at an early stage.

• Poor Communication