Overcoming Common Challenges in Small-Scale Construction

Small-scale building is hard.

Addition, renovation, tiny new construction … whether you’re working on a personal home project or doing commercial real estate work… if the budget is tight, everything can feel like an uphill battle. The good news is, most of the common construction challenges facing contractors and property owners can be avoided.

We’ll cover common small-scale construction problems (plus some not-so-common ones) and practical solutions you can put in place before they impact your projects.

Quick list of what you’ll find below:

• The top 5 common problems in small-scale building
• How to access the right equipment for small building projects
• Overcoming the labour shortage with preparation and planning
• Creating and managing budgets that actually work
• Tips for keeping small building projects on schedule

The Top 5 Common Problems in Small-Scale Building

We know construction can be frustrating. But for small building projects, the challenges often seem a bit amplified.

Contractors and property owners feel squeezed on every side. Smaller budgets translate to smaller margins for error. When something goes wrong, it throws off the entire project.

The most common problems in small-scale building include:

• Equipment access: Hard-to-find, hard-to-afford machinery and tools
• Labour shortages: Not enough skilled workers
• Budget overruns: Costs spiralling out of control
• Timeline delays: Projects taking way longer than planned
• Material costs: Prices that can increase overnight

Familiar? These issues impact nearly every small-scale construction project at some point. The key is knowing how to address these problems before they snowball.

How To Access the Right Equipment for Small Building Projects

If you’re new to the world of small-scale building, the first big hurdle is often equipment access. Commercial equipment is expensive.

Purchasing heavy machinery and tools outright is cost-prohibitive for many small-scale contractors and homeowners. This is where equipment rental has become a gamechanger for the construction industry.

There’s nothing worse than being in the middle of a construction project and having to abandon it because you don’t have the right equipment to move forward.

Renting construction equipment bridges that gap. Reliable Gallatin equipment for small-scale building is a major determining factor as to whether a project is a success or not. Local equipment providers know the specific demands of smaller scale building projects and can match the right machinery to the job.

Here are some of the key reasons renting makes so much sense for small-scale construction:

• Lower upfront costs: Renting requires significantly less capital investment than buying new equipment
• Access to newer, more advanced equipment: Rental fleets are constantly updated, so you get the latest technology
• Maintenance is included: Machines are serviced and repaired by the rental company
• Flexibility: Ability to scale up or down as project demands change

By the way, the construction equipment rental market is expected to grow at a 6% CAGR through 2032. (Hint: a CAGR is a “compound annual growth rate”). Why’s that? Simple… more and more contractors see the benefits of renting equipment versus purchasing outright.

For small-scale building projects, renting is one of the best ways to preserve cash flow while still having access to top-of-the-line professional construction equipment.

Overcoming the Labour Shortage with Preparation and Planning

Hold on to your hardhats.

We’ll be straight with you… this one is a doozy.

The construction industry is in the middle of a full-blown workforce crisis. New industry data shows 80% of construction firms report difficulty finding qualified, available workers. This isn’t an inconvenience. This is a full-on emergency for the industry.

Smaller construction companies get squeezed even more than large firms. With higher wages and better benefits, it’s not as difficult for larger firms to compete for the same worker pool.

So, what’s a contractor to do?

The best approach is to start thinking and planning early.

• Build relationships with local trade schools and apprenticeship programs well before a project begins. Don’t wait until you need a crew to start networking.
• Invest in training and development. Sometimes, the best people are those you grow and develop internally. Workers are more likely to stay with a company that invests in them.
• Embrace technology when it makes sense. Equipment with modern automated features allows smaller crews to do more. Technology reduces the number of workers needed on some tasks.
• Plan for delays due to labour shortages. With 61% of all construction projects in 2023 reporting delay due to staffing issues, it’s important to build in buffer time to project schedules.

The workforce challenge is not going away any time soon. The industry will have to adjust and adapt.

Tackling the labour shortage in small-scale construction is all about getting out in front of the issue before it derails projects.

Budget Management That Actually Works

Budget overruns are death to small-scale building projects.

To be clear, we’re not just talking about the post-construction sticker shock that’s so common. We mean running out of money before the job is even finished.

The numbers are not our friend. Construction input costs increased for the 20th consecutive month recently. Materials are more expensive than before the pandemic. Labour is also a major cost… and construction wages have increased 20% over the past few years.

All this financial pressure is magnified when working with small building budgets.

So how do contractors keep costs under control?

• Get detailed quotes and estimates in writing. Vague estimates with line items like “miscellaneous materials” lead to surprise charges. Contractors need an itemised breakdown of every aspect of the job.
• Build in contingencies into the budget. Having a 10-15% buffer for unforeseen expenses isn’t pessimistic. It’s smart planning.
• Track spending in real-time. Waiting until the end of a project to review expenses is a disaster. Budget reviews on a weekly basis is essential to stay on top of issues.
• Lock in material prices where possible. Changing material prices can wreck a budget. Contractors should try to get fixed prices for major materials and supplies.
• Phased construction can be a smart approach. Breaking up large jobs into smaller pieces allows for better cost control and correction if problems arise.

Financial discipline is essential when building on a smaller scale. Every dollar counts when margins are thin.

Tips for Keeping Small Building Projects on Schedule

Project delays are a pain in the neck for contractors and property owners.

Delays = more costs. Delays = angry customers. Delays = profit margins suddenly turning into losses.

Common causes of timeline delays in small-scale building include:

• Bad weather that halts work
• Permitting and inspections that drag on
• Equipment not available when needed
• Worker absenteeism and no-shows
• Material deliveries not arriving on time

The solution? Planning. Thorough planning.

• Create realistic project schedules. Optimistic schedules doom a project from the start. Build in buffer time for common setbacks.
• Communication is key. Everyone involved in a project should be aware of the schedule and any changes. Silence causes delays.
• Backup plans. Alternate suppliers, rental equipment sources, and other labour resources. Hope for the best but plan for problems.
• Monitor progress daily. Small issues on day 1 stay small if they’re caught. Ignored problems become project-killers.

Schedule management is what separates successful small-scale construction projects from troubled ones.

Bringing It All Together

Construction is a challenge.

Small-scale building is extra hard. Equipment access, labour shortages, budget constraints, and timeline delays impact projects of all sizes. But none of these things are unavoidable.

Recapping the key action points in a nutshell:

• Renting equipment is the best way to preserve capital
• Build workforce relationships before a project starts
• Create realistic budgets with contingency included
• Plan schedules that account for setbacks and delays
• Track all progress in real-time to catch issues early

The construction industry generates $1.8 trillion in annual economic activity in the US alone. Gallatin small-scale building makes up a significant portion of that activity. Small building projects matter… and they deserve to be executed at a professional level.

Success is 90% preparation.

Contractors who anticipate problems and have solutions at the ready will always outperform those who simply react to issues as they arise.

That’s the difference between a project that goes smoothly and one that turns into a cautionary tale.

You May Also Like

• Precast Compound Wall Cost Calculator | Boundary Wall Construction Cost Calculator
• King Post Truss: Design, Construction, and Application
• Brick Work Calculation: Estimating Materials for Construction