Uncovering the Causes of Construction Failures

[Pratap Koppula]

🏗 Construction is building someone’s dream and why we fail to build one, the real strategic failures🤐

Construction projects are complex 💢 undertakings that require careful planning and execution✅ to be successful 🏆 .

Unfortunately, there are numerous potential pitfalls ⚠ , that are external and internal, that can hamper a project's progress, leading to strategic failure 🔥 .

See the image for detailed external factors, mapping to internal factors 🔀 and how they result in below strategic failure.

1️⃣ Failure to secure lower cost of capital 💰; the cost of capital during the gestation period adds up quickly 📈.

2️⃣ Failure to obtain volume discounts 🏗 and rebates from materials suppliers and secure lower labor 👷‍♂️ rates from certain subcontractors; and

3️⃣ Failure to build a sales and marketing 📢 strategy and aligning it with the Project timelines ⌛ .

4️⃣ Failure to manage cashflows 💥 resulting in abandoning ✂the projects.

To effectively manage these challenges, construction projects should incorporate a comprehensive plan for risk management 💯 , including an assessment of potential risks 🆎, development of strategies 💡 to address risks 📌 , and implementation of those strategies ✅.

In the next post, we will cover 'Organizational structure 🌐 and various parties👥' that are directly involved in your Construction and Development Project 🏚.