Embarking on a construction or build project is an exciting venture, full of anticipation for the final result.
However, the journey from blueprint to completion is often fraught with potential delays that can disrupt timelines and inflate budgets.
Understanding these common issues can help in planning and mitigating their impact.
From labour and material shortages to unpredictable weather and unforeseen structural problems, each factor plays a significant role in shaping the project’s progress. In this blog, we’ll delve into the primary causes of construction delays and their far-reaching repercussions, providing you with insights to better navigate your next project.
Availability of contractors and labourers
One of the most common factors that can impact your build project are labour shortages or tradesmen failing to show up, significantly delaying the project’s timeline.
The flow-on-effect requires project managers to scramble for available and skilled workers, potentially compromising on quality or experience.
Such delays can lead to mistakes during construction that require rectification, further extending the timeline and increasing costs.
Material shortages and delays in delivery
These can halt construction altogether, waiting for critical supplies like timber or bricks.
This kind of interruption not only pushes back the schedule but also affects the budget, especially if material prices increase in the interim.
When it rains on your parade
Adverse conditions such as heavy rain or extreme temperatures can stop work on site, leading to further delays.
Unexpected surprises
Once construction is underway, unexpected issues like foundational problems or other structural concerns may be discovered.
These issues must be addressed before moving forward, often requiring additional inspections, approvals and work that were not accounted for initially.
The repercussions of these delays are manifold
Construction projects are inherently complex and fraught with potential delays, each with the potential to lead to a cascade of complications.
Financially, they can increase the total cost of borrowing, especially if the project is funded through loans. The longer the construction takes, the more interest accrues.
If the intention behind the construction is to sell the property, market fluctuations during the extended construction period could affect the eventual sale value.
For rental properties, delays mean a longer period without generating income from tenants.
Furthermore, if the owner intends to live in the property, delays could mean extended periods of renting elsewhere or living in a construction zone, both costly and uncomfortable scenarios.
These challenges not only escalate financial burdens but also increase stress, impact personal lives and can strain relationships due to the extended commitment and frustrations that delays bring.
Listen to the Property Trio podcast
For further insights on managing a build or renovation project effectively, be sure to check out the Property Trio Podcast, which offers a number of episodes dedicated to this topic
- Episode 11 – Small time development – How it can work for you, but is it a risk worth taking?
- Episode 31 – Get rich quick schemes – #1 of the top 7 Critical Mistakes
- Episode 67 – Subdividing – fundamentals for success
- Episode 68 – Renovations – top tips and mistakes to avoid
- Episode 211 – The Post-Development Predicament, How Many Properties Do You Really Need? Do I Buy 2 Cheaper Properties or 1 Higher Value & Retirement Planning
- Ep 257 – The Comprehensive Guide to Townhouses – Performance, Selection, Property Planning and Development Projects
- Ep 259 – Home Building & Development Project Perils: Tackling Escalating Expenses, Development Finance, Project Overruns & Their Cascading Impacts
Reach out to us
If you need assistance or wish to discuss the next steps in your construction project, book a complimentary meeting with one of our strategic mortgage brokers to explore the intricacies of finance and planning.
