Typical Problems the

Construction Industry
Prepared by: NACA MANILA
GROUP

Problems in Construction Industry

Poorly Coordinated Design
Documents
Change Orders and
Rework
Delays and Cost Overruns
Claims and Litigation
Greater Risk
Poor Turnover Documents
Frustrated Owners
Tight Profit Margins

25% of world solid waste

Buildings consume 30% of
raw materials
Buildings consume 42%
worlds energy
Source: Organization for
Economics and Cooperation
Development (OECD)

Typical Problems the Construction

Industry
Reasons

Lack of Proper Planning

Lack of Coordination
Lack of Professional Specialized Education
Poor Decision Making
Inefficient dispute resolution mechanism
Lack of Mediation
Difficulty in responsibility fixation
Lack of Project Monitoring/Program Monitoring
Reluctance in adoption of new Technology
Lack in Value Engineering adoption
Lack of Integrated Project Delivery

Typical Problems the Construction

Industry
30% of projects do not meet original program
budget
92% of clients said that designers drawings are
typically not sufficient for construction
37% of materials used in construction
10% of the cost of the project is typically due to
change orders
38% of carbon emissions are from buildings not cars
Source: CMAA Owners survey, CMAA industry report,
Economist Magazine

Typical Problems the Construction

Industry
A survey done ranked following management issues in the
top 10 cost over run factors

Fluctuation in prices of raw materials

Unstable cost of manufactured materials
High cost of machineries
Lowest bidding procurement method
Inefficient project (site) management/ Inefficient cost
control
Long period between design and time of bidding/ tendering
Conventional method of cost estimation
Excessive change orders
Inadequate project planning
Inappropriate government policies

Typical Problems the Construction

Industry
Construction Productivity

Typical Problems the Construction

Industry
Visualization and Communication
Current tools and processes focus more
on documentation instead of building
design
Architects, Engineers are spending more
time on less important redundant work

Typical Problems the Construction

Industry
Visualization and Communication
Communicating your design vision to the
client accurately to gain approvals

Typical Problems the Construction

Industry
Change Orders
Inability to visualize the
final product at the design
phase leads to changes in
design in the construction
phase causing delays and
extra cost.
Monal restaurant
Islamabad 122 Change
Orders

Typical Problems the Construction

Industry
Communication Within
Teams
Early Professional
Practice
The Master Builder:
Master with multidisciplinary education
Architecture,
mathematics,
engineering, materials,
technology, etc.

Single point

Typical Problems the Construction

Industry
Communication Within Teams
Growth in specialization/academic
disciplines:
Architecture
Civil Engineering
Architectural Design
Building Technology/Environmental
Systems
Community Design
Environmental /Sustainability
Graphic Design
History
Housing
Interior Design/Architecture
Landscape Design
Preservation
Tectonics
Urban Planning and Design

Materials science and Engineering

Coastal Engineering
Construction Engineering
Earthquake Engineering
Environmental Engineering
Geotechnical Engineering
Water resources Engineering
Structural Engineering
Surveying
Transportation Engineering
Forensic Engineering
Municipal or urban engineering
Control Engineering

Typical Problems the Construction

Industry
Communicatio
n Within
Teams
Over the wall
syndrome,
less
coordination
between the
design team
is resulting in
poor quality

Typical Problems the Construction

Industry
Communication between Stakeholders
Coordination and collaboration issues
between different stake holders causing
dissatisfaction of everyone

Typical Problems the Construction

Industry
Coordination
Current tools and workflow doesnt support
coordinated work which increases cost and
time of the project as well as decrease its
quality.
Changes in the building design result in
coordination errors

Typical Problems the Construction

Industry
Coordination
2D Drawings causes
miscommunication

Typical Problems the Construction

Industry
Coordination
Current tools and workflow doesnt support
coordinated work which increases cost and
time of the project and as well as decrease
its quality.
Changes to the building design result in
coordination errors.

Coordination

Coordination

Coordination

False ceiling is not provided in Corridors in

the Original Design

Coordination

Entrance Stairs to Void Area is not provided in

Design
Rain water during heavy shower accumulates into
the corridors from void area opening

Coordination

Supply and Return pipes for outdoor units

are provided on exterior side of the
building.

Coordination

Coordination

Typical Problems the Construction

Industry
Cost Uncertainty
Manual quantity
estimation is a time
taking process with
low accuracy.
Majority of the
projects are over
budgeted.
Design change effect
on the budget is not
easily reflected.

Typical Problems the Construction

Industry
Unsafe Construction
Site
Unsafe practices and
absence of safety
procedures and
planning at site
causes injuries and
loss of lives

Typical Problems the Construction

Industry
Less Prefabrication
more Onsite Work
More work on-site,
less off-site
Main reason is
incomprehensibility
during design phase,
errors in drawings
and inaccuracy during
construction
More cost, less quality

Typical Problems the Construction

Industry
Poor Planning and
Project Delays
Causes of Delay:
Finance and payments
Inaccurate time
estimation
Delay in payments to
supplier and
subcontractor
Poor site management
Old technology
Natural Disasters

Unforeseen site
condition
Shortage of material
Delays caused by
subcontractors
Changes in drawings
Improper equipment
Inaccurate cost
estimation
Change orders
Organizational Changes
Regulatory changes

Typical Problems the Construction

Industry
Poor Site and
Procurement
Management
In any construction
project 10-15% of
the material is
wasted
Main Reason is
improper design
issues as well as
site management

Typical Problems the Construction

Industry
Poor Facility Management
Data
Facility Data is not properly
transferred to the client at
the time of handover.
O&M Manuals are manually
transferred and physically
stored.
Data is lost with the
passage of time
Data is very difficult to
retrieve for maintenance
and renovation

SOLUTION?

BUILDING INFORMATION MODELING

(BIM)

BUILDING INFORMATION MODELING

(BIM)

BUILDING INFORMATION MODELING

(BIM)

BUILDING INFORMATION MODELING

(BIM)

BUILDING INFORMATION MODELING

(BIM)

 Further reading
http://www.slideshare.net/VulcanSmartServi
ces/building-information-modeling-bim48320625?qid=55218f9a-4dc9-4c43-8856ca8b145536d5&v=&b=&from_search=4