What Are The Challenges Faced By The Construction Industry In India? The construction industry occupies a very important place in the Indian industrial sector because the contributions of this industry to the economy of the country are many. It is estimated that the industrial sector contributes about 9% to the GDP of the country and there are well over 50 million people employed in the industry.

1. In recent times, the construction industry faced many problems, especially during the COVID lockdown and the restrictions imposed afterwards.
2. The industry was greatly impacted by the lockdown and restriction.
3. Since the lockdown ended, we have seen steady growth in the industry but still, the industry is facing several problems.

Therefore, today, we will be discussing some of the top problems faced by the construction industry in India: Increase In The Cost Of Raw Materials The cost of raw materials in India is on a rise and since the COVID pandemic, the cost has been increasing.

A reason behind this increase in the cost of raw materials is the shortage of supply of raw materials because of the disruptive supply chain. Along with these, there has also been the introduction of several taxes by the state governments on these materials that are also contributing to the increasing costs.

The ultimate result of all of this is that people are now less interested in investing in the construction sector because the expenses are too high and even the buyers are not willing to buy materials at such high prices. Environment Preservation Environment preservation is important for any industry nowadays, especially in the construction industry.

Even if we talk about other industries such as the board games industry then there is now focus on creating environmentally conscious products such as green-playing cards to play games like or digital version of these games are available such as Freecell, Klondike, on the internet to prevent the damage to the environment.

For construction projects, it is now compulsory that the surrounding environment is preserved and no or minimal damage is done to the environment. In India, that is not the case because it is very difficult to preserve the environment in India because of soil erosion, floods, soil alkalinity, salinity, etc.

These aforementioned factors make it difficult for contractors and construction companies to preserve the environment. Along with this, air & water pollution are also on the rise in the construction industry. As a result of all of these things, the builders and construction companies are forced by the government to adopt such measures that have a minimal negative effect on the environment which is hampering their revenues.

Provision Of Electricity The provision of electricity is also a problem that the construction industry in India is facing. The need for continuous provision of electricity is increasing but at the same time, the construction companies and builders are struggling in this process because obtaining clearance from authorities sometimes takes a lot of time and this forces them to create captive power plants to supply electricity on their own.

This is not only a long and expensive process but also requires certain skilled people who can complete this job of captive power plant creation. As a result of inadequate provision of electricity in the country, the completion time of the projects is severely affected and the alternatives are expensive methods that the builders don’t want to employ.

Natural Disasters Natural disasters & calamities are producing further problems for the construction industry. These disasters are unpredictable, especially in the climatic conditions of India which is making the whole process of site selection a difficult thing for the builders.

• The builders have to research the consultation site and make sure that it is at such a place that is not prone to natural calamities like floods or landslides, otherwise, it can create a lot of problems and also increase the costs & expenses.
• In addition to this, buildings need to be properly planned, designed, and constructed so that they can withstand the effects of natural disasters.

This is adding further to the expenses of the construction companies & builders. Lack Of Skilled Manpower Skilled manpower is also required in the construction industry nowadays because, at different stages of construction, skilled manpower is required.

• As we saw in the pandemic situation, because of the lack of skilled manpower, there were delays in many ongoing projects.
• Besides, if skilled manpower is not available then it can affect the quality of the constructed buildings, which is something that you don’t want to compromise in this age.
• Therefore, the lack of skilled manpower is also a major problem for the construction industry in India.

Approval For Multiple Clearances Last but not least, in India, every construction project whether it is residential or commercial requires multiple clearances from authorities. It includes electricity, environment preservation, lands, utilization of services, pollution control, etc.

What are the major problems faced by the construction industry in India?

What Are The Challenges Faced By The Construction Industry In India? The construction industry occupies a very important place in the Indian industrial sector because the contributions of this industry to the economy of the country are many. It is estimated that the industrial sector contributes about 9% to the GDP of the country and there are well over 50 million people employed in the industry.

In recent times, the construction industry faced many problems, especially during the COVID lockdown and the restrictions imposed afterwards. The industry was greatly impacted by the lockdown and restriction. Since the lockdown ended, we have seen steady growth in the industry but still, the industry is facing several problems.

Therefore, today, we will be discussing some of the top problems faced by the construction industry in India: Increase In The Cost Of Raw Materials The cost of raw materials in India is on a rise and since the COVID pandemic, the cost has been increasing.

1. A reason behind this increase in the cost of raw materials is the shortage of supply of raw materials because of the disruptive supply chain.
2. Along with these, there has also been the introduction of several taxes by the state governments on these materials that are also contributing to the increasing costs.

The ultimate result of all of this is that people are now less interested in investing in the construction sector because the expenses are too high and even the buyers are not willing to buy materials at such high prices. Environment Preservation Environment preservation is important for any industry nowadays, especially in the construction industry.

Even if we talk about other industries such as the board games industry then there is now focus on creating environmentally conscious products such as green-playing cards to play games like or digital version of these games are available such as Freecell, Klondike, on the internet to prevent the damage to the environment.

For construction projects, it is now compulsory that the surrounding environment is preserved and no or minimal damage is done to the environment. In India, that is not the case because it is very difficult to preserve the environment in India because of soil erosion, floods, soil alkalinity, salinity, etc.

• These aforementioned factors make it difficult for contractors and construction companies to preserve the environment.
• Along with this, air & water pollution are also on the rise in the construction industry.
• As a result of all of these things, the builders and construction companies are forced by the government to adopt such measures that have a minimal negative effect on the environment which is hampering their revenues.

Provision Of Electricity The provision of electricity is also a problem that the construction industry in India is facing. The need for continuous provision of electricity is increasing but at the same time, the construction companies and builders are struggling in this process because obtaining clearance from authorities sometimes takes a lot of time and this forces them to create captive power plants to supply electricity on their own.

• This is not only a long and expensive process but also requires certain skilled people who can complete this job of captive power plant creation.
• As a result of inadequate provision of electricity in the country, the completion time of the projects is severely affected and the alternatives are expensive methods that the builders don’t want to employ.

Natural Disasters Natural disasters & calamities are producing further problems for the construction industry. These disasters are unpredictable, especially in the climatic conditions of India which is making the whole process of site selection a difficult thing for the builders.

The builders have to research the consultation site and make sure that it is at such a place that is not prone to natural calamities like floods or landslides, otherwise, it can create a lot of problems and also increase the costs & expenses. In addition to this, buildings need to be properly planned, designed, and constructed so that they can withstand the effects of natural disasters.

This is adding further to the expenses of the construction companies & builders. Lack Of Skilled Manpower Skilled manpower is also required in the construction industry nowadays because, at different stages of construction, skilled manpower is required.

• As we saw in the pandemic situation, because of the lack of skilled manpower, there were delays in many ongoing projects.
• Besides, if skilled manpower is not available then it can affect the quality of the constructed buildings, which is something that you don’t want to compromise in this age.
• Therefore, the lack of skilled manpower is also a major problem for the construction industry in India.

Approval For Multiple Clearances Last but not least, in India, every construction project whether it is residential or commercial requires multiple clearances from authorities. It includes electricity, environment preservation, lands, utilization of services, pollution control, etc.

What causes poor project performance in the construction industry?

Technology Adoption – Countless surveys have stated that the construction industry is very slow at adopting new technologies. What’s worse is that low technology adoption is the leading cause of poor project performance and low productivity. Some recent research has shown that only 10% of companies have a dedicated budget to implement new technology for their business.

• These include BIM and software applications to gather data and drones and robots to increase efficiency.
• What stops most companies from embracing technology? According to the research we’ve quoted, most contractors believe that ease of use and lower costs are the main reasons for software adoption.
• Another reason is a verifiable return on investment.

Basically, they want to know if the investment will be worth it, so they’re very cautious about making suggestions to decision-makers. But there’s good news. As construction work becomes more complex, construction companies are starting to transform how they approach their work.

• Data-driven decision-making is becoming more important for contractors, which pulls numerous benefits.
• Adopting cloud-based solutions helped companies improve the allocation of labor and materials, safety measures, and recruitment processes.
• For example, when companies use tool tracking software, it’s easier to assess the status of their equipment and maintain it.

In spite of this, one-third of contractors still rely on paper forms or spreadsheets. Even though digitalization in the construction industry seems to be on the rise, there’s a lot of room for improvement.

Why is the construction industry the second largest industry in India?

Handling challenges in construction projects In the years ahead, the Indian construction industry will have to overcome various challenges, be it direct or indirect. Technocrats associated with the construction industry need to employ innovative technologies and skilled project handling strategies to overcome these challenges, says T.

1. Chitty Babu, Chairman and CEO, Akshaya Homes Pvt. Ltd.
2. A glance around and the wonders of civil engineering glares at us; a house here and a flyover there; a highway here and a metro line there.
3. The green splash of nature is slowly converting into a concrete boulevard, thanks to the construction industry.

The second largest industry in India after agriculture, the construction industry is making a significant contribution to the national economy and provides employment to a large number of people. The influx of various new technologies and deployment of project management strategies has made it possible to undertake projects of mega scale.

• Investment in this sector has been found to contribute up to 6.5 per cent of GDP of the country.
• According to growth statistics, this sector generates 4.7 times increase in income and 7.76 times increase in employment generation potential.
• In recent times, India has stepped up its development agenda.
• One explicit indicator of this is the aggressive pace of construction activity.

The particular emphasis on infrastructure development will put India on the roadmap with Brazil, China and Russia towards becoming a developed nation by 2050. However, in its path of advancement, the industry has to overcome a number of challenges, some new and some old.

• Many of these challenges are a direct result of construction operations, while others a result of indirect, peripheral activities.
• A surprising number of challenges are not construction issues but must be addressed and managed to ensure project success.
• Some of the construction issues include workforce considerations, safety, time constraints, and the changing nature of the work.

Non-construction challenges that are part of the business landscape include legal issues, government regulations, environmental concerns, and sociopolitical pressures. Project management Construction as such, is a complex array of interdependent activities that some would say is at best, an organised chaos.

The very nature of construction introduces challenges typically not encountered in other industries. The work is often seasonal and involves functioning in remote sites with accessibility problems. There may be difficulty in applying automation and requires adoption of technical innovation and the costs can vary as per the conditions.

The product can be of mindboggling size, cost, and complexity and also the work is not performed in controlled conditions, therefore highly impacted by weather and other environmental conditions. The management of construction projects requires knowledge of modern management as well as an understanding of the design and construction process.

• Construction projects have a specific set of objectives and constraints such as a required time frame for completion.
• The Great Pyramids, the Hanging Gardens of Babylon, and the ancient cathedrals of Europe did not rise up haphazardly.
• From start to finish, precise coordination was required to complete these massive projects that often stretched across decades and generations.

Construction managers plan and coordinate such construction projects. She/he must understand and navigate the project through its realities and master the obstacle thereby gaining an edge over the market. A capable project manager must understand the business, legal and social aspects of construction and be determined to convert risks into opportunity.

Akshaya was founded in 1995 under T. Chitty Babu, a qualified civil engineer. The journey over the last 18 years has seen the company excel in both the home and commercial domains by building nearly 150 edifices in South India. With his vast experience Chitty Babu has become a leading light of the real estate industry in India. He is the former president of CREDAI Tamil Nadu and Chennai and the incumbent secretary of the national chapter of CREDAI.

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Design: Design is one of the major criterions giving the competitors in the industry a run for their money. The latest and the meanest of the innovation is the need of the hour and with the rising concern for our ecology, eco evangelists resort to sustainable construction or green construction.

Green building is the practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a building’s lifecycle from sitting to design, construction, operation, maintenance, renovation and deconstruction. This practice expands and complements the classical building design concerns of economy, utility, durability, and comfort.

Green buildings also known as a sustainable or high performance building, use less water, optimises energy efficiency, conserves natural resources, generates less waste and provides healthier spaces for occupants, as compared to a conventional building.

1. Green buildings are steadily increasing their footprint in India.
2. According to Indian Green Building Council, from a mere 20,000 sq.
3. Ft in 2003, the green building footprint in India has now reached 1 billion sq. ft.
4. It is estimated that the market potential for green building products and technologies in India by 2015 is about $100 billion.

Real estate developers are also increasingly turning to green building egged by the ready availability of environment-friendly building materials such as AAC blocks, fibre-cement sandwich panels and plywood-substitute lightweight partition panels. But the lack of adequate skilled labour with the necessary technical knowhow and the unavailability of logistics in terms of acquiring various building materials, the necessary funding and the necessary consumer drive towards the same pull the initiative down a little.

Infrastructural deficiencies also need to be looked into.There is also a lot of material wastage that is hard to manage on site. Precast materials such as wall panels provide a good solution to tackle these challenges. With cement prices going up, the need of the hour is to use materials that call for a reduced mortar consumption.

We lack a comprehensive understanding of the wide range of innovative green building technologies, materials and practices available. Manpower resource: In India, traditionally the construction industry has been labour intensive as the labour is cheap and easily available.

• For any project, manpower resource or human labour is as significant as financial resources and its efficient use is critical for success.
• Good results certainly cannot be achieved without the adequate availability of skilled and unskilled manpower and the most suitable allocation and management of human resource.

Construction is typically viewed as being one of the least desirable industries to work in given it is dangerous by nature and requires dirty hard work. Other industries or professions offer preferred work environments that are cleaner, safer, and generally more desirable.

1. The pervasive growth of technology and the associated industries that have followed are attracting the youth away from traditional industries.
2. Consequently, there is a severe shortage of bright, talented people willing to work in construction.
3. Material resource: Materials resources are the essence in the construction industry.

It represents a substantial proportion of the total value of the project. A material management system includes the major functions needed in construction project i.e. identifying, acquiring, storing, distributing and disposing of materials. Material planning may vary, depending on the project size, location, cash flow requirements, and procedure for purchasing and inspection.

Regular supply of the material in proper quantity must be ensured. It is extremely important because late or irregular delivery or wrong types of material delivered during construction are major factors that contribute to the delay of a project. Also, the effective utilisation of manpower can be greatly enhanced by ensuring proper and sufficient availability of material.

In the years ahead, the construction industry in India has to overcome various challenges, be it direct or indirect. Technocrats associated with the construction industry need to employ innovative technologies and skilled project handling strategies to overcome these challenges.

• The outstanding performance under demanding situations in the past will stand in good stead and give confidence to the Indian construction industry to bring about an overall development in the infrastructure of the nation.
• The gains of large investments in the mega-projects eventually will feedback to the construction industry itself in the form of better economy and improved work conditions.

Above all, the devastating issue is the lack of accordance of this industry status to this business which has compelled slow development. : Handling challenges in construction projects

What are the most important aspects of construction projects?

Environment Preservation – A mandatory aspect of any construction project is to ensure the preservation of the surrounding environment. In India, it is tough to maintain soil erosion and degradation. The reason being mainly floods, droughts, soil alkalinity, aridity, and salinity.