Construction is complicated. Each party involved usually depends on the other to get things right. This helps ensure the required objectives are met. They also want to ensure all processes go smoothly and nothing goes out of hand. The following are commonly involved in construction projects:
- Architects.
- Contractors.
- Civil Engineers.
- Laborers.
- Other associated professionals.
Construction isn’t a child’s game. It requires coordinated efforts. The sum of all these parts can create a worthwhile and successful outcome. However, if the outcome isn’t what it is supposed to be then no one will like it. All the efforts will go to waste. This is why dispute avoidance is a necessity in construction.
How do clients fare when it comes to handling construction projects?
No business can ever survive without a client. Construction companies wouldn’t get a project without them. It is thanks to them that construction companies survive and earn. Their employees get a chance to work and to improve their skills too. The industry is wide and a lack of clients would mean business and work disruption.
Clients might know some aspects of construction work in most instances. However, some do not know much about construction work. They often rely on contractors and construction companies to do everything. Well-informed clients are never an issue. They usually point out the wrongdoings of construction companies and contractors and can be annoying at times.
One thing is certain: those who start the project take a lot of risks. Contractors take risks along with project owners to ensure nothing goes wrong.
In what ways do clients and project managers make a mess out of construction projects?
Quantum Analysis professionals usually have a hard time explaining how clients and project managers overturn construction projects. Let us now have a look at how and why this happens:
They hire contractors and companies at low prices hoping to get top-class outcomes
Clients must not hire contractors, companies, and other associated professionals at low prices because these prices do not guarantee good outcomes. Cost-cutting isn’t beneficial all the time.
Imagine a contractor offering services at bargain prices and promising the best result; what happens? The materials they bought came at a bargain price which degraded after some time. The workers used are inexperienced and unskilled, and the results go down the drain. So much for a bargain right?
In terms of property development, this can become quite disastrous. They would start developing cracks, there would be faults, tiles and paint peeling off, holes in the walls and floors, and overall structural integrity issues. Poor quality results mean a huge disaster.
Inability to secure finances and funding for projects
Large-scale projects require immense funding. A lucrative insurance policy, a treasury bond, or another financial surety amounting to millions of dollars works. Construction of properties is not a joke, whether it is a home, a building, or another project. Numerous guarantees are needed and must be provided. They help in passing a plan before approval. Else the project will never be approved.
Investor confidence can be shaken by the pitfalls of the construction industry. Clients should have the needed funding with them at all costs. If not, then they will have problems looking for investors and securing them.
The absence of financial resources is a big NO for construction projects
Construction claims professionals explain that there are cases where they found an absence of proper financial resources at the client’s end. This creates disputes that are never resolved and it often results in companies going bankrupt, projects sold to the highest bidders, chases by Law Enforcement bodies, convictions, hearings, etc.
At times clients forget to bring money on the project and get the money invested elsewhere. They often give guarantees that are either non-existent, outdated, or wrong. They even take a loan for it. When they are unable to repay it, they declare bankruptcy.
Repayment of loans from their end can prove to be a trap for both construction companies and contractors. The wrath of the law is hence hard to doge and escape.
Lack of involvement in the project from the client’s end
Another problem coming from the clients’ end is their lack of involvement in construction projects. They usually delegate this prime responsibility to third-party individuals and outfits. This is not considered a smart move. It proved to be a disastrous move.
What is the worst that can happen? The project goes haywire due to a lack of proper oversight. Most projects end up in the dump. They are being checked by the wrong people at the wrong time. The result? The project becomes a disaster with a huge monetary loss. It also results in the following:
- Extension of work.
- Schedules are being accelerated.
- Materials being misplaced.
- Equipment being lost.
And vice versa.
If clients don’t get involved in their projects, then who will? This is why they need to work on their projects and be involved or else lose out big time.
