This is an exciting time for investors, project owners, and contractors in Western Canada. Record investments have made construction a hot market in the region. As per the Q4 2021 Global Construction Survey, the Canadian construction industry is projected to reach CAD 190,860 million in 2022, marking a growth of 8.8%. Thanks to the economic expansions, pent-up savings, and lucratively low interest rates, this growth impulse is foreseen to persist and reach CAD 232,243.2 million by 2026.
However, with the booming market come several significant risks. Whether you are an investor, a project owner, or a contractor, you have to keep these risks in mind before embarking on something new.
As the best general contractors in Edmonton , we deem it upon us to raise awareness regarding the risks prevailing in the market. Fortunately, with proper care and the right knowledge, you can mitigate these risks and ensure prosperity for your construction projects.
In this blog, we have listed some of the risks as well as the strategies that can help mitigate them.
Since the industry is booming and more and more stakeholders are participating in the market, a workforce shortage is inevitable. Project owners are struggling to procure enough skilled staff.
From site supervision to project managers and safety officers, experienced individuals in all fields are becoming hard to find. The problem is that compared to the surging demand for a skilled workforce in the construction market, the labour market is lagging in terms of supply.
In the end, this shortage paves the way for a chain of adverse events such as project delays (as discussed later) and poor work quality. The latter results in substantial losses for contractors in the shape of dissatisfied clients and loss of customer loyalty.
The best way to overcome this risk is by investing in the training and education of your existing workforce to help them grow and take up professional roles such as project managers, safety officers, etc. As far as skilled site labour is concerned, the ideal solution is to hire fresh talent and polish it according to your needs.
Due to a shortage in a skilled workforce, increasing costs and shortage of materials and project delays are unavoidable. As emphasized earlier, such delays may taint your reputation in the eyes of your clients and lead to the deterioration of future business prospects.
To overcome the risk of possible project delays, proper planning is absolutely essential. Before taking up any new projects, perform a thorough analysis of your available resources and identify the areas that might result in delays. Then, take the appropriate measures to hoard the required resources and only after that accept new projects.
Evidently, undertaking more projects than your resource capacity allows as a contractor does more harm than good.
Another issue that stems from a lack of a skilled workforce is quality issues. As a result of the unavailability of skilled staff, contractors and project owners might hire unskilled workers.
Although they can help in meeting the increasing workforce demand, letting them work without proper training can lead to increased deficiencies and quality issues.
In an attempt to win the race against time, contractors and project owners often unintentionally disregard the importance of quality. However, taking such risks will not only result in unhappy clients but can also pave the way for litigations and lawsuits.
Thus, as a contractor, you must put quality at the core of every business operation you take on and let your staff know that everyone will be held accountable for the work they perform. As mentioned earlier, unskilled labour should be adequately trained prior to taking up any construction tasks.
Since the industry is booming and more and more competitors are entering the market, there is a high demand for skilled labour. Hence, personnel with proper experience and training are being poached by competitors.
Over the past few months, many employees have been seen to quit during a project due to ‘better offers’. This can lead to disruption in the project.
BelVan Construction is a premium construction company in Alberta, Saskatchewan, & BC. We are qualified commercial general contractors based in Edmonton. We have offered various business experts general contracting, project design-build, pre-construction consulting, and construction management services since 2011.
Right from the start, our primary focus has been on providing our customers with premium yet affordable construction and renovation services in a respectful, responsible, and reliable manner. In each of our retail construction and renovation projects, our goal has been to make the clients’ needs our top priority with a commitment to providing excellent all-around services.
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