Is there anything more costly than a construction delay? You know that when there is a delay at any point in the process, from loan distribution to delivery of materials, there is a ripple effect that can have a huge impact on the entire process. That said, we have found at Fund Control that many people involved in this industry don’t realize the real, long-term costs.

Keep reading to find out about some of the most common causes of construction delays and their real costs. If you want to protect yourself by ensuring that you have maximized your fund control options, work with Fund Control.

Common Causes of Project Delays

Project delays are always a hassle but in some cases they can turn into real nightmares. Some of the most common causes of construction project delays include waiting for approval from government agencies or municipalities, not having the necessary working capital, not budgeting appropriately, running into constraints with subcontractors, delays with utility providers, and poor project management.

What do most of these potential delays have in common? Many of them are entirely avoidable. By using the right fund control options, hiring the right personnel, and making sure you have the best project manager available, you can significantly lower the chance of a serious project delay.

The 6 Real Costs of Construction Delays

At the end of the day, the real construction delay costs will depend on a wide range of factors. However, in most cases construction delays bring any number of the following costs:

1. Interest reserve.
2. Disrupted cash flow.
3. Material price increases. Of course, it’s possible that the price of materials could decrease but this is less likely.
4. Penalties or fees for falling behind schedule.
5. Missing the market and closed sales window opportunities.
6. Negative impact on worker morale. Workers don’t like being behind schedule anymore than you do.

These are just six of the common costs of construction delays. The good news is that at Fund Control, our software can help prevent these delays.

Project Delays Don’t Just Affect You

One of the worst things about project delays is that no matter how aggravating they are for you, they affect many other companies and people too. Everyone can be impacted by a construction delay, including contractors, subcontractors, lenders, consultants – you name it.

If you want to reduce your chance of getting behind on your next construction project, work with a fund control software that gives easy access to the documents as needed by each individual involved. At Fund Control we offer a host of benefits and features that can change the way you do business – for the better. Call us now for your free demo.