Challenges And Opportunities In Commercial Construction

Challenges and Opportunities in Commercial Construction

Commercial construction presents significant challenges but also tremendous opportunities. In this blog, we will break down three of the most pressing issues in the industry—problems that, if addressed, could resolve many of the difficulties construction professionals face. These insights come from extensive research, including key takeaways from How Big Things Get Done.

The three major challenges in commercial construction are:

1. Lack of proper project planning.
2. Use of ineffective project management systems.
3. Insufficient training for industry professionals.

Each of these factors plays a critical role in project success. By understanding and addressing them, construction teams can significantly improve outcomes.

The Importance of Proper Project Planning:

One of the biggest reasons construction projects fail is inadequate planning. Even large national contractors often do not allocate enough time, staff, or effort to preconstruction. As a result, projects become reactive firefighting exercises rather than well-executed operations.

A fundamental principle in successful construction is that planning should be proportional to project duration. If a project is scheduled to last ten months, at least five months should be spent on preconstruction. If it is a five-year project, planning should take at least two and a half years.

The reason is simple: projects do not go wrong—they start wrong.

Investing in thorough preconstruction planning prevents costly mistakes and delays. Consider the financial implications: spending a few hundred thousand dollars on proper planning can prevent millions of dollars in errors, reputational damage, and lost opportunities. Smart planning is an investment that pays off throughout the project lifecycle.

To support this, we have created a detailed project planning timeline that outlines the key steps required for effective preconstruction. Additionally, our book, Elevating Preconstruction Planning, provides a step-by-step guide to building a well-structured, risk-aware plan.

The Impact of Using the Wrong Systems:

Many construction projects fail not because of poor execution but because they rely on ineffective project management systems. One of the most commonly misused methods is Critical Path Method (CPM) scheduling.

CPM is often favored in contracts, but not because it improves project outcomes. Instead, it is frequently used to create complexity and shift blame in disputes. The reality is that CPM has a poor track record in delivering projects on time. Studies show that only 15 to 45 percent of scheduled activities in a CPM-based plan actually occur as planned, even in the short term.

To improve project efficiency, teams should adopt more reliable methods:

• Takt Planning ensures work progresses in a predictable, structured flow.
• The Last Planner System enhances short-term planning and team coordination.
• Scrum improves collaboration and decision-making in office-based project management.

CPM can be used for contractual summary purposes, if necessary, but it should not be the primary system guiding execution. When the right systems are in place, projects run more smoothly, risks are reduced, and teams can work more effectively.

The Lack of Training in the Construction Industry:

One of the most overlooked challenges in commercial construction is the lack of structured training for professionals. Many new hires are placed in roles without the necessary skills or experience. Instead of progressing through a systematic training program, they are expected to learn on the job, often without proper guidance.

Every construction professional should receive foundational training in:

• Field engineering and project planning.
• Project management methodologies.
• Total station operation.
• Lift drawings and 3D coordination.
• Blueprint reading and interpretation.

The industry needs a far greater investment in training. If construction companies do not double or triple their training efforts, they will continue to face a shortage of skilled professionals. A more structured approach—similar to intensive training programs in other industries—would significantly improve workforce readiness.

It is not reasonable to expect a recent graduate to manage large-scale projects without hands-on field experience. Nor is it fair to place individuals in critical management roles without providing the necessary technical knowledge. Without proper training, costly mistakes and inefficiencies will continue to plague the industry.

The Path Forward:

The construction industry can significantly improve project outcomes by focusing on three key areas:

• Comprehensive project planning that sets the foundation for success.
• Adopting effective project management systems that improve workflow and accountability.
• Investing in structured training programs to develop a skilled workforce.

By addressing these challenges, the industry can move toward more efficient, predictable, and successful construction projects.