Managing a construction project is a huge undertaking. When broken down into its parts - project management, bid management, reporting, etc. - the entire process can seem overwhelming.
There are many potential pitfalls in the life of a construction project. Project managers are tasked with keeping a construction site running smoothly, safely, on schedule, and on budget, multiple client management, and much more.
Some Major Challenges in Construction Management Are
1. Poorly defined goals
Many project managers struggle with a lack of clearly defined goals for the projects they manage. When goals are not clearly defined, project managers and stakeholders are not on the same page about the direction of the project. It's like going on a journey without a destination in mind - you end up wasting time and fuel and end up in the middle of nowhere.
2. Inconsistent pricing
Pricing for product-based businesses is simple. You set prices for each time and then send out invoices by simply calculating volume.
But as a contractor, you're in a service-based business and pricing is inconsistent. These fluctuations depend on external factors beyond your control. Therefore, setting a price will be complex. Inform your clients in advance or set prices before each project, taking into account the needs and requirements of a particular project.
3. Budget Constraints
Going over budget is common in the construction sector. It is the job of the construction project manager to set a reasonable expectation for cost overruns and make adjustments to mitigate and manage them. Poor judgment, lack of proper oversight, or a simple miscalculation can result in the collapse of the project.
4. Unprofessional invoices
Invoices are one of the most official communications that you send to your clients and any mistakes herein can lead to major consequences. Many of us don’t know the exact method to create an invoice. It is exactly where we make most of the mistakes.
5. Inefficient Employee Training
untrained or partially trained employees are when left in the battlefield to fight might not strive. When employees do not have enough training they will be prone to more errors and mistakes.
6. Underestimating payment terms & conditions
Setting clear terms of payments and due dates is one of the first steps to ensuring timely cash flow into the business. Many contractors include just one policy for all, which is 30 days payment policy. But, understand each client is different. Therefore, set unique payment policies for all.
Well, with Automation, most of these issues can be resolved instantly.
A construction invoice software like Invoicera can streamline the workflow of contractor businesses. It can help to manage all business activities apart from the basic function of invoicing. It allows you to:
- Generate bulk contractor invoices
- Acute finance reports
- Multi-business setup
- 3-tier security
- Custom workflow management
- Automated invoicing
- Cash flow management
- Financial management
- Attachment of invoice templates