Every major commercial project is a team effort. The property owner brings the vision, the building crew makes it a reality, draw inspections are scheduled, and the lender ensures everyone gets paid. Naturally, with all of these people aligned towards the same goal, everyone wants to stay on schedule.
However, even with strong planning and communication, unexpected circumstances can still throw a project off track. The project’s ability to adapt is what ultimately determines consistent success, whether that’s navigating weather delays, labor shortages, or budget changes.
To better prepare, here are a few of the most common disruptions in commercial construction and a few ways teams can keep the project moving forward anyway.
Why Do Commercial Projects Get Off Track?
Before discussing specific causes, it’s worth noting just how common construction delays and overruns are in commercial construction. A 2017 study from Arizona State University, “Identifying the Global Performance of the Construction Industry” found that 98% of construction projects exceed their budgets in North America. In other words, delays and unexpected costs aren’t the exception, they are the rule.
With this in mind, project managers and stakeholders shouldn’t ask if a project will encounter setbacks, but when. Factoring in the potential for delays and having a plan for response in place is the key to consistent success. With that caveat out of the way, here are a few major hurdles that every project manager should have on their minds:
Inclement Weather & Site Surprises
Just as water is the #1 issue for all completed commercial buildings, unexpected water intrusion can also be a major issue during the early phases of construction. Heavy rain, snowstorms, and high winds can cause material spoilage, delay deliveries, and limit safe access to the site. Even short-term worksite closures can push back timelines, extend equipment rentals, and disrupt supply chains.
It’s not just the forecast that can derail a project, though. Unseen site conditions can be just as problematic. During excavation, crews may encounter unstable soil, environmental hazards, and maybe even unknown subsurface infrastructure that can demand immediate attention. These instances may lead to redesigns, engineering reviews, or further delays so that applicable permits may be acquired.
Proactive site assessments, contingency plans, and flexibility with scheduling are the best ways for construction projects to still stay on track despite whatever mother nature may have planned.
Labor & Material Shortages
Few challenges slow down a commercial project faster than labor and material shortages. Since the COVID-19 pandemic when many skilled professionals left the industry, construction firms have struggled to maintain reliable crews. Looking ahead, the Associated Builders and Contractors have also noted a worrying trend that 41% of the workforce will retire by 2031, further straining an already limited labor market.
In addition to labor shortages, a lack of materials can be just as disruptive. Supply chain issues, global demand shifts, and limited availability of raw materials can all lead to long lead times for essentials like steel, concrete, and insulation. Even when materials are available, transportation bottlenecks and regional shortages can still complicate acquisition, create delays, and stress the project’s budget.
Much like weather-related setbacks, material and labor shortages can often create mounting delays and make other existing problems even worse. That’s why building in buffer time, securing materials early, and diversifying suppliers are crucial to staying on track. For many commercial projects, flexibility is often the difference between minor delays and extended standstill.
Budget & Schedule Inaccuracies
Even with careful planning, commercial construction projects rarely stay perfectly in line with their initial budget and timeline projections. If unforeseen factors aren’t monitored closely, cost overruns and scheduling delays can add up and potentially suspend the project as a whole.
Labor shortages, for example, can quickly drive up wages. These shifts, especially for long-term projects, regularly outpace original estimates. Any delays may also result in overtime work, further expanding this portion of the budget. Without fairly paying for the time and effort of skilled laborers, no commercial project can reach its completion.
Permitting and regulatory issues are another common disruption for construction timelines, as they are consistently underestimated during planning phases. Delayed approvals, surprise code changes, and shifting compliance standards may emerge in the middle of construction and stall progress suddenly.
From scope creep to emergent issues, no construction plan goes unaltered from beginning to end. To stay ahead of these challenges, teams have to identify budget and timeline discrepancies in real time.
One of the most effective tools that construction teams use to keep on track is the draw inspection.
What Are Draw Inspections?
Also known as construction progress inspections, draw inspections are a series of assessments performed by a professional, third-party commercial property inspector. Through a series of site visits, they verify whether certain phases of construction have been completed before the lender can release funds for the next portion of the project.
After each inspection, a detailed report is sent to the lender clarifying the status of the project. Through this process, the project can stay aligned with its intended timeline and budget much more easily.
Draw inspections are a benefit to all parties during the construction of a commercial property. Lenders gain assurance that funds are used as intended, contractors receive timely payments so that they can keep the work moving forward, and owners gain transparency. With this increased visibility, teams can identify issues early and make adjustments as needed.
Delays in commercial construction projects are inevitable, but with the right systems in place, they don’t have to derail a project. National Property Inspections can bring structure to your next commercial project. As the premier name in commercial inspections throughout the United States, NPI helps keep projects on track from day one to the final walkthrough. Whether you’re building new or expanding your portfolio, call NPI before you buy.
