How you can’t fix Construction

In this blog, we’ll explore why fixing the construction industry is nearly impossible and delve into the mindset and tools you can adopt to make progress in any attempts to improve it. So, if you’re curious about why the system prevails, what that system is, and the key factors that keep it in place, you’ve come to the right place. Let’s get started.

How The System Protects Itself

The construction industry has learned and implemented key principles from various influencers throughout history, which have been codified into systems. These systems are designed to protect themselves with checks and balances, creating a cycle that perpetuates inefficiencies. A key takeaway: the system always protects the system. The book Built to Fail sheds light on how the construction industry has repeatedly fallen into the same traps. The following eras illustrate these key mistakes:

Biggest Mistakes From the Era of Taylorism

The first era, marked by Taylorism, focused on speeding up workers by measuring output—how many nails could be hammered in an hour or how much work could be done in a given time. This era perpetuated the false belief that more people equal more work. In reality, this leads to overburdening, rushing, and stacking people in a way that reduces efficiency.

Biggest Mistakes From the Era of Administration

The second major mistake arose during the Era of Administration, where adding more managers was seen as a way to increase productivity. This belief led to an excessive focus on hierarchy and paperwork, resulting in more administrative layers rather than actual production. Systems built around administration further disrespect the people doing the actual work. These mistakes have now been codified into systems that protect themselves. To move forward, we need a shift toward production systems and lean thinking.

Why You Shouldn’t Push & Rush Workers

Pushing and rushing workers doesn’t work. Lean thinking teaches us to focus on improving processes rather than blaming individuals. When workers are rushed, the system creates bottlenecks—like a kink in a hose. More pressure doesn’t fix the kink, it just damages the hose. Similarly, applying more pressure on workers results in inefficiency and reduced output. Instead, we should focus on making work “ready,” ensuring the processes are smooth, rather than overloading people.

The Nature of People in Administrative Positions

The current system fosters an environment where mid-level managers are focused on protecting their jobs and their processes. This means more wasted effort on unnecessary tasks like critical path analysis and slippage reports. People who’ve built careers around these outdated methods are unlikely to change, as they resist disruption to their comfortable positions.

How Construction Contracts Are Designed

Construction contracts are often written in a way that pits stakeholders against one another, incentivizing rivalry rather than collaboration. Instead of trade partners working together, they compete in toxic ways. This creates a myopic focus on individual profits, where, in reality, nobody wins unless everyone wins on a project site.

How Segregation of Labor Leads to More Waste

Taylorism led to the segregation of labor into specialized trades and classes. As a result, what could once be done by one contractor now requires coordination between 15 different entities. This increases waste and inefficiency.

Ignorance From Builders & Lack of Training

The industry has moved away from self-performing general contractors who understand the building process. Instead, we’ve moved to a world where construction managers are merely brokers, leading to disorganization and a lack of effective project execution. Compounding this issue is the lack of budget for proper training in the industry, meaning we have a generation of so-called builders who are not adequately prepared.

Other Systematic Flaws

While the examples above highlight some of the most glaring issues, there are many more, such as:

• Government contracts that prioritize administration over actual building.
• A focus on the lowest bid, incentivizing contractors to cut corners.
• A systematic disconnect between designers and builders.
• Corporate systems that stifle innovation.

How We Can Fix the System

To fix construction, we need leaders with the authority and mindset to change the system. They must focus on creating a production system that respects people and fosters collaboration. Until we change the systems and governing bodies that regulate the industry, we won’t make real progress. I hope this blog gives you some insights into why the construction industry remains broken and what can be done to start fixing it. Let’s work together to make a positive change.