3 Causes of Money Loss on Construction Projects
Are you satisfied with the way your construction projects are going? More importantly, are your clients happy? If not, you could lose money on your construction projects. In today’s litigious construction environment, it is crucial that contractors can discern when a project is headed in the wrong direction and take preventative measures to prevent financial loss. This article will discuss several areas that contribute to the loss of money on construction projects.
Running an efficient and productive operation is the key to completing projects on time and staying within budget. The project’s scope of work outlines everything necessary to complete a project. When teams are not meeting contractual obligations, the project’s budget will take a hit. Productivity suffers for various reasons including low worker morale, not enough resources to complete tasks, a lack of skilled labor, or poor management and supervision. Production can be increased through improved communication, more training, and the adoption of technology; these will help keep your projects on track.
Poor Quality Work
Everyone expects high-quality work, yet too often, construction parties end up in a dispute or in court over poor quality work. Doing the work right the first time will save you a lot of trouble in the form of increased costs to rectify the work and delayed project timelines. If certain aspects of a structure are done improperly, this could create safety risks for workers and the public, which could lead to OSHA citations and the need for a Boca Raton construction lawyer.
Material problems are one of the most common issues for contractors. Either material prices are increasing or material is being wasted due to improper storage. Either the site does not have the proper materials necessary to complete a project due to late delivery or the team underestimates the materials needed for the project and fails to order enough. Theft is also a potential issue that could halt a project’s progress. Material problems can absolutely affect a contractors budget in the form of storage costs, disruption of cash flow, and project delays. Make every effort to start your projects on time, coordinate labor and materials, and schedule material deliveries efficiently.
If you would like to speak with a Boca Raton construction attorney, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.