How to Reduce Delays During Your Industrial Construction Project
Since 2020, unprecedented events have caused delays across all types of construction work. Labor and material shortages coupled with factory shutdowns and widespread delivery impediments have significantly increased lead times for most industrial construction contractors. While delays are inevitable and should be expected, there are some effective ways to minimize their impact.
Top Causes of Delays in Industrial Construction Projects
The most common delays that an industrial construction company will likely face include:
- Encountering problems that were not addressed during the planning stage.
- Lacking equipment or components needed to complete manufacturing.
- Unqualified workforce needed for successful project completion.
- Material shortages and delivery setbacks.
- Late-game order changes.
Tips for Avoiding Industrial Construction Delays
With meticulous forethought and planning, you can avoid many of the above-mentioned causes of interruptions, as well as mitigate setbacks more effectively when they do occur. Consider the following tips:
- Be adamant about early planning.
- Develop a contingency plan before it’s ever needed.
- Ensure open two-way communication with a single point-of-contact.
- Set aside contingency funds to cover unanticipated expenses.
Ensure your team is ready to deal with unexpected delays. You should also create flexible schedules that include time for managing potential delays. Additionally, keep the funds needed for unexpected expenses set aside—even if you don’t need them, they will increase your assets.
How Much Can Industrial Construction Delays Cost You?
It’s difficult to calculate the actual cost of industrial construction delays. That’s because each construction project is unique, and the owner, general contractor, subcontractors, and clients are all financially impacted.
The true cost of a delay could also vary greatly depending on the type of delay it is.
There are generally three types of delays in a contract: inexcusable, excusable, and compensable delays.
- Inexcusable Delays: This refers to delays caused by a contractor or supplier’s poor performance.
- Excusable Delays: These delays are caused by acts of nature like tornadoes.
- Compensable Delays: This type of delay is caused by circumstances that the owner is liable for.
So, there is no “average delay cost.” That cost is calculated based on a variety of factors, including labor costs, equipment rental or ownership costs, and so much more. As a property owner, if you work with an experienced and trustworthy industrial contractor, they will always inform you of any potential project delays, the cost of these delays, and why these delays occurred in the first place.
Reduce Delays With Help from IICC
There will be delays in most industrial construction projects. That’s why it’s important to have a good plan in place, and a professional team to help carry out that plan.
If you’re starting an industrial construction project, work with our team at IICC. Founded in 1961, we provide a wide array of industrial construction services to clients in North America, including equipment installations, maintenance, millwrighting, rigging, and shutdowns. No matter what type of project we’re handling, we always adopt a customer-first approach during all phases of the project. And, you can trust us to keep you updated every step of the way. We’d love to hear more about your project! Contact us today to schedule a consultation with one of our experts.