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Challenges and Opportunities in the Construction Industry Part 2

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Contractors face numerous challenges on a daily basis. From finding and acquiring skilled workers to procuring materials and meeting deadlines, there’s no end to the trials and tribulations separating a contractor from successful project completion. Fortunately, construction professionals are hardworking individuals who are eager to drive the industry forward regardless of the challenges that lie in wait.

In part one of this two-part series, a Boca Raton construction lawyer from Cotney Construction Law discussed how contractors at leading building firms are embracing opportunity despite the challenges it can present. More specifically, we discussed integrated project delivery (IPD), which is being used by some building firms to streamline the building process and increase efficiency. Now, we will continue to discuss challenges and opportunities in the construction industry, including:

  • Sustainable building and wellness
  • Labor solutions
  • Recession-proofing

Challenges and opportunities are abundant in the construction industry, but if you want to grow your contracting business, you’ll have to take some risks. As your business changes, you can protect your legal interests by partnering with a Boca Raton construction lawyer who is well-versed in the ins and outs of the industry and has spent years fighting on behalf of contractors.

Sustainable Building and Wellness

Owners are trying to get the best return on investment possible every time they engage a contractor for a project. When it comes to commercial construction, owners want to accommodate as many workers as they can for the lowest possible price. To maintain legal compliance and satisfy owners’ wishes, contractors are focusing on sustainable building and wellness for new business construction. Integrating efficient mechanical systems, point-of-source water filters, circadian rhythm lighting, and other factors that improve employee comfort levels may cost more for builders, but it’s worth it to procure lucrative contracts. Adding an escalation clause to contracts can help minimize material and labor costs.

Labor Solutions

Due to the ongoing labor shortage, retaining workers is more important than ever before. “I can’t afford to lose one person,” said Jay Badame, president and COO of AECOM’s Building Construction division. “If I do, history has shown that it costs me $250,000 to replace that person in terms of recruitment and training. I have to make sure my competitors aren’t stealing my people.”

Some strategies to retain workers include integrating a profit-sharing plan, incorporating new technology, and bolstering training and ongoing education initiatives. Establishing a strong culture is another way contractors can prevent workers from walking away.

Recession-Proofing

Many contractors are worried that a recession is on the horizon. As a result, they’ve begun to future-proof for a potential downturn in the economy. If the demand for construction wanes, it will be vital for contracting businesses to diversify their operations to acquire as many potential contracts as possible. Keeping workers busy is essential for businesses that expect their workload to decrease substantially in the near future.

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.