The Biggest Construction-Industry Challenge is Also Major Client Pain Point
Hilary Gennaro, 12/22/25
One of the biggest challenges any construction company faces is ensuring timely project delivery. It is such a pervasive problem, in fact, that performance data from 2024-2025 (according to Buildern.com) reveals that large projects can run as much as 20% behind schedule and exceed budgeted expense by 80%. Specifically in North America, 98% of construction projects face delays, with the average overrun being 37%. These additional delays are problematic for everyone involved, resulting in increased costs, disrupted schedules, and strained client relationships.
Clearly, not every company within the industry is incompetent or unprofessional. The problem comes from many different sources. One major challenge is that the construction industry faces a shortage of skilled, young laborers, while wages for the trades continue to rise in order to attract and retain workers. Globally, inflation remains higher than pre-pandemic averages. Even while the construction industry remains vital for infrastructure investments, urban redevelopment, and private sector expansion, material costs (particularly in steel, concrete, and electrical components) continue to rise. Not only does this make construction a more costly industry for business owners, but it makes it difficult to forecast expenses when a company is planning and refining processes. Construction companies feel intense pressure to balance speed with predictability.
A closer look at the main causes behind delays paints a startling picture. There is a projected deficit of 499,000 skilled workers, resulting in slower timelines and even canceled bids, and a $10.8 billion loss annually. Material pricing and availability volatility makes it difficult to manage suppliers and lead times, and the fact is that nearly 40% of construction projects experience delays due to supply chain problems. However, 30% of industry respondents in a poll said they felt unrealistic planning and scheduling was also to blame. Design-related revisions – often client driven – account for 15%-20% of project delays, and weather-related delays – outside of anyone’s control – can account for up to 38% of project delays. Finally, projects can be slowed and otherwise impacted by the fluctuating price of goods – inflation in the industry rose by about 4.15% in 2025. (Statistics compiled from Buildern, Bureau of Labor Statistics, Plan Academy).
For clients, having a predictable timeline and budget for a project is understandably vital. How are construction companies – especially Gennaro Contracting right here in Mason County, Washington – working to improve project timeline fidelity?
Technology adoption is one of the most significant differentiators for the construction industry. “It is currently valued at around $10 billion, and is expected to grow to $21 billion by 2030” (Buildern.com). Companies who integrate digital platforms for scheduling, staffing, budgeting and supply procurement report higher on-time completion rates compared to those still reliant upon manual project planning methods. In the future, AI-based tools, predictive analytics, and even job site sensors could help even further with this goal.
Gennaro Contracting is committed to adopting and using the best tools to support client services. We use BuilderTrend and the Team-Up Crew Calendar to fine-tune scheduling. BuilderTrend is also a great program for setting a budget for projects, as well as estimated project completion timeline. Google Sheets helps us analyze and view data so we can revise and improve processes. All members of the team are able to be in immediate communication with the Telegram app. We are continually researching other software and tools to make things run more smoothly. In our next blog, we will look at different platforms for effective client communication, which is another challenge in the construction industry, and one which Gennaro Contracting is focused on improving for our customers.
In conclusion, although the construction industry faces global challenges from external forces that impact on-time project completion, at Gennaro Contracting we are committed to going into 2026 with an eye toward improving the elements over which we have control. Using digital tools to help us estimate realistic timelines and potential delays, we can give customers a better idea of how long their project will take to complete. Reviewing data consistently will help us determine how external factors tend to impact timelines (for example, average supply chain delays) so that we can adequately prepare customers for the unexpected. Most importantly, by focusing on transparent and consistent communication, we hope our clients will feel like partners in the process. We are right here in Mason County to help you with your kitchen remodel, bathroom renovation, and deck building needs.
