Elevate takeoffs for faster bids and increased project success for FREE. See Details Here.

PlanHub’s Q2 Research Reveals Many Opportunities. Register for the Webinar and Learn More

6 Common Construction Challenges and How to Overcome Them

Worker Painted everywhere in green, except his feet

General contractors (GCs) face many challenges in their day-to-day work. From low quality subcontractors to cash flow problems and a labor shortage, GCs are vulnerable to added costs creeping into their low profit margins. Construction site hazards are also a big problem and should be addressed before the project starts. By addressing these challenges proactively, GCs can help ensure profitability and project manager success.

1. Poor communication

Good communication between project managers and the construction company is the key to a successful construction project, and bad communication with a construction firm can lead to delays and added costs. Taking a collaborative approach to a project is one of the best practices to adopt if you want to reduce both conflict and claims. When construction workers work together, they can often come up with better solutions.
Project communication between construction professionals should be provided through a platform that everyone is comfortable with. If necessary, provide training to those who aren’t familiar with it. The platform must be capable of reaching office, design, and field staff.

2. Subcontractor risk

As most general contractors know, good, quality subcontractors can be hard to find. Many suffer from the challenges mentioned in this article. Having a variety of subs to choose from improves bid competitiveness and project quality.
General contractors need to find new ways to connect with subcontractors. Lead sites like PlanHub allow GCs to reach out directly to qualified subs and invite them to bid their projects. This can be especially helpful when bidding out of town work.

3. Cash flow problems

A recent survey shows that it can take construction companies an average of 83 days to receive payment for their work. Meanwhile, costs continue to roll in and there’s no cash to pay for them. Contractors in the construction sector have to plan for construction material purchases and other large expenses, or they could run out of money. Profitable businesses end up in bankruptcy because of a lack of cash.
To help combat cash flow problems, look for funding alternatives that delay payment, like material financing, or help you get paid sooner, like invoice factoring. Both will help improve your cash position so that you can continue operating until you get paid.

4. Labor shortage

The construction industry has suffered from a labor shortage for years now. Construction productivity has been exacerbated by the recent global pandemic. Contractors are finding it hard to find workers, so projects are being delayed, costing contractors and owners money.
Contractors should make their companies attractive to young workers. This can be done by providing training programs for unskilled workers and adopting technology. As an industry, construction needs to reach out to women and people of color and let them know the advantages of a career in construction.

5. Reliance on paper

Many contractors, particularly small ones, still rely on paper documents to run their businesses and projects. In today’s fast-paced environment, projects can’t wait on paper documentation. Many times, changes are made and communicated electronically before paper documents are updated.
There are many tools available to help even small contractors improve their processes and enter the digital age. Many SaaS (software as a service) products are available on a subscription basis for a small fee. Before making an investment, take the software for a test drive so you can experience it and see if it will work for your team before you purchase.

6. Safety and health

Everyone knows that safety and health should be the primary concern on a construction project, but they often get lost between budget and scheduling problems. Workplace illnesses and injuries can lead to lost time and productivity on a project. This usually leads to project delays and added costs.
Contractors should develop a culture of safety and provide ongoing training for workers. Having a consistent, well-run safety program with the best construction safety tips will increase productivity and help attract top talent.

Overcome bidding challenges

Use construction bidding websites, like PlanHub, to access general contractor software free and bring your estimating practices into the 21st century. Its robust platform gives you the tools you need to manage your bidding process and reach out to contractors and suppliers to get the best price. For a free demo, contact us today.

Be the first to know

PlanHub insights, resources, and news, sent directly to your inbox.

    planhub icon

    Data and Deep Insights

    We make construction smarter by connecting with the right people, at the right time, for the right project.

    With our technology and data intelligence, we empower construction professionals to easily build the right business relationships, streamline pre construction processes, and make efficient decisions.

    From competitive intelligence in each project allowing you to know how many other contractors are downloading or bidding to insights as to contractors’ performance, we provide the data you need to lead your business to success.

    By providing faster, simpler, and unmatched data insights in each step of the pre construction process, PlanHub helps your business lay a strong foundation for the success of the rest of the construction process.

    planhub icon

    Bid Leveler & Proposal builder

    Comparing bids to one another has never been easier. Users can now see bids side by side, compare bid amounts, and review subcontractors’ certifications and qualifications all in one place.

    Bid Leveler’s apples-to-apples approach allows you to easily drill down and see detailed, easy-to-scan cost breakdowns. Indicate bid preference, hide bids that don’t meet your needs, and request needed information from subs.

    planhub icon

    Full Bid Management

    From the initial decision to pursue a project to the final bid submission and follow up, bid management plays a central role in pre construction.

    Effectively managed bids during the preconstruction phase set the stage for a successful project execution and satisfied clients.

    Streamline bid management from project posting to estimating, bidding, and awarding in one place with easy project posting, project-contractor automatic matching based on trades, location, and qualification with PlanHub.

    Use bid planner, bid builder, bid leveler, and award tools to always know what’s going on with each project and bid.

    planhub icon

    Estimation and TakeOff

    Let’s face it—time is money. And the more time it takes to perform takeoffs and submit bids, the more you risk losing out on valuable revenue opportunities. Manual methods and locally installed desktop software slow your takeoff process, and many digital solutions currently on the market can be overly complex and not user-friendly. 

    Build faster takeoffs, get more bids out the door, and win more projects. Forget pen and paper, outdated desktop software, and overly complicated digital takeoff solutions. PlanHub’s easy-to-use Takeoff tool helps you and your team build accurate takeoffs faster, minimize errors and material waste, and win more projects that boost your business growth. Performing your takeoffs with PlanHub allows you to:

    • Streamline and integrate your process: Perform your takeoffs in the same platform you use to manage your network and bids.
    • Avoid costly estimating errors: Get better accuracy with digital tools instead of traditional, mistake-prone pen and paper.
    • Collaborate easily: Share and work with your team, no matter where you—or they—are located.
    • Submit more bids and win more projects: Get quality bids in front of general contractors faster and get ahead of your competition.
    planhub icon

    Document Management

    Organize, store, and manage various documents, blueprints, drawings and other information related to projects before the actual construction phase begins.

    This phase is crucial for setting the foundation of a successful construction project, and effective document management plays a significant role in ensuring that all necessary information is accessible, accurate, and up-to-date to all interested parties.

    Access, review, work on, and share large complex documents in one platform with amazing speed. From project definition, drawing management, takeoff, estimation, bid management, and contracts, everything happens in PlanHub.

    planhub crm
    planhub icon


    Be part of a construction professionals’ ecosystem that enhances collaboration, streamlines project management, and fosters smart relationships between companies, construction professionals, and projects.

    Enjoy seamless communication, build strong relationships, and streamlines project management. By leveraging the power of connections and collaboration, we enhance efficiency, save time and resources, and drive collective growth in the industry.

    planhub network
    planhub icon

    1M+ pre-qualified network

    PlanHub is the leading platform that connects companies, construction professionals, and projects in the pre-construction industry, focusing on building and developing meaningful relationships to enhance efficiency and productivity.

    We have integrated general contractors, subcontractors, and material suppliers’ workflows in one platform to simplify the complex back and forth usually present in preconstruction. By allowing all interactions to be done through PlanHub, tracking projects and relationships is much easier, saving contractors and material suppliers time and money. Interactions in the platform are tagged and measured to provide insights to users.

    General contractors create bid packages that are shared in PlanHub as projects. They can include templatized lists of all CSI cost items as part of the new Baseline feature. Baseline allows for faster and more accurate bid requests, facilitates homogenization of subcontractors’ bids, and simplifies the comparison of incoming bids.

    Subcontractors are automatically matched with relevant projects based on their profile, preferences, and pre-qualification information saving hours of research to both sides. They can review project details, documentation, and blueprints.

    planhub icon

    High-quality projects

    Your one-stop job for qualified hard-to-find private project leads in varying stages like pre-planning, bidding, etc., and across different geographies, zip codes, or distance to your office.

    Projects include plans, specifications, bid dates, and other relevant project information.

    You can segment project leads by type of project, status, project building use, trades and sub trades, or create your own list of keywords — and be notified when one of them is found in a posted project’s documentation or plans.

    We make it simple to find projects that match your business — and make sure you are notified right away.

    					<script src='https://planhub.com/wp-includes/js/jquery/jquery.min.js' id='jquery-core-js'></script>
    <script charset="utf-8" type="text/javascript" src="//js.hsforms.net/forms/embed/v2.js"></script>
        region: "na1",
        portalId: "7063061",
        formId: "ced7254f-5c61-49b9-9ce0-6f870b79a958"

    Get the report!

    From the very beginning, PlanHub has been a place where people can do meaningful work and build strong relationships.

    Come grow with us! We’re building innovative technologies that simplify preconstruction for everyone.

    Expand your network and connect with general contractors, subcontractors, owners, architects, and suppliers – not to mention thousands of relevant projects at your fingertips.

    Generate relevant leads, faster and with precision. With access to private, hard-to-find projects, you can connect with architects and owners on projects still in the pre-design and design stages.

    PlanHub’s advanced suite of bid management tools allows you to increase productivity, identify relevant projects using data, build bids with Takeoff, and manage bids through the entire process.

    Create quicker, improved takeoffs effortlessly. PlanHub’s Takeoff Core aids your team in accurate, faster estimates, minimizing errors, and driving business growth.

    Expand your network and connect with general contractors, subcontractors, owners, architects, and suppliers – not to mention thousands of relevant projects at your fingertips.

    Generate relevant leads, faster and with precision. With access to private, hard-to-find projects, you can connect with architects and owners on projects still in the pre-design and design stages.

    PlanHub’s advanced suite of bid management tools allows you to increase productivity, identify relevant projects using data, build bids with Takeoff, and manage bids through the entire process.