4 Hidden Culprits Behind Commercial Construction Inefficiencies

by Jim Gibson
Image of Construction Management Crew Scaled

The commercial construction industry is no stranger to challenges. While building the infrastructure and commercial spaces that keep society moving is rewarding, it’s also incredibly complex. Projects often face hidden costs in delays, cost overruns, and inefficiencies that can wreak havoc on budgets and timelines. At the root of many of these issues are four main pillars of waste: Technology Gaps, Labor Inefficiencies, Change Order Impact, and Safety and Communication Issues.

The good news? By addressing these areas head-on, the construction industry can not only minimize waste but also thrive in an increasingly competitive landscape.

Hidden Construction Costs and Waste Infographic

1. Technology Gaps

Let’s start with technology—or the lack of it. Despite the rapid growth of tools like drones, Building Information Modeling (BIM), and cloud-based platforms, many construction companies still rely on outdated systems or, worse, manual processes. These gaps lead to a cascade of problems:

  • Inefficient Inventory Management: Without real-time tracking, materials go missing or arrive late, stalling progress.
  • Poor Project Oversight: Teams using outdated methods like paper blueprints or spreadsheets lack the ability to catch errors early.
  • Inconsistent Data: When everyone is working off different systems, communication breaks down, and mistakes happen.

For example, firms using drones to survey sites can spot issues like grading errors before they become costly mistakes. Similarly, BIM technology allows teams to simulate the entire construction process, identifying potential conflicts in design or scheduling before they occur.

2. Labor Waste

Labor is one of the most significant costs in construction, but inefficiencies often lead to massive waste. A report from 2022 (FMI Corp) revealed that the construction industry lost up to $40 billion in productivity due to poor labor management. What causes this?

  • Idle Time: Workers are often stuck waiting for materials or instructions.
  • Skill Mismatches: Inexperienced workers may take longer to complete tasks or make mistakes that require rework.
  • Disorganized Schedules: Poor planning can result in crews standing around without clear direction.

Adopting advanced scheduling tools and workforce management platforms can help optimize labor. For instance, AI-powered software can predict when workers are needed and automate shift assignments, ensuring the right people are in the right place at the right time.

3. Change Order Impact

If there’s one thing that sends projects off the rails, it’s change orders. Whether it’s a last-minute design tweak or an unforeseen issue, change orders disrupt workflows, inflate costs, and extend timelines.

  • Direct Costs: Every change means extra materials, additional labor, and sometimes expensive rework.
  • Ripple Effects: Adjusting one aspect of a project often impacts multiple others, leading to delays and further costs.
  • Lost Productivity: Teams must pause work while waiting for new instructions or materials.

The solution? Better planning upfront. Technology like BIM allows stakeholders to visualize the project from start to finish, reducing the likelihood of unexpected changes. Additionally, cloud-based platforms ensure that everyone is on the same page, so when changes do happen, they’re implemented as efficiently as possible.

4. Safety and Communication Issues

Construction sites are inherently risky, and safety concerns can lead to delays and wasted resources. Add poor communication to the mix, and you’ve got a recipe for disaster.

  • Safety Delays: Accidents or unsafe conditions can shut down work and require costly interventions.
  • Miscommunication: If crews don’t have the latest updates, tasks get repeated or done incorrectly.
  • Low Morale: Poor communication and unsafe conditions can lead to higher turnover and less engaged workers.

Investing in tools like wearable safety tech and real-time communication apps can make a world of difference. For example, wearable devices can alert workers to hazards on-site, while collaboration platforms ensure that everyone—from the office to the field—has access to the latest information.

Turning Challenges Into Opportunities

The commercial construction industry is at a crossroads. While the four pillars of waste—Technology Gaps, Labor Waste, Change Order Impact, and Safety and Communication Issues—present real challenges, they also offer enormous opportunities for improvement.

By embracing modern technology, optimizing labor, managing change orders effectively, and prioritizing safety and communication, construction leaders can not only reduce waste but also deliver projects more efficiently and profitably.

The key is innovation. With tools like drones, AI-driven scheduling systems, and cloud-based platforms, the industry can move away from inefficiency and toward smarter, faster, and more sustainable building practices. It’s not just about keeping up—it’s about leading the way into a brighter future for construction.

What Next?

In my next post, I’ll lean into how drones and software technologies are reshaping the commercial construction industry. Until then, check out our new podcast series, “Drones and Construction“, streaming on your favorite podcast station.

Listen to Drones and Construction on Spotify

From the Editor

Do you need to hire a professional drone service provider for your project?  To speak to an aerial data specialist, fill out a form, email us or for even faster response times, give us a call at (833) FLY-4YOU or (833) 359-4968.  Check out our transparent pricing at https://www.aerialdecisions.com/drone-photography-pricing/ and watch this space as we expand on the above topics and more over the coming weeks and months.  

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About Aerial Decisions

Aerial Decisions is a Los Angeles-based Drone Services Provider (DSP).  We specialize in providing cutting-edge drone data collection combined with industry leading software solutions tailored for the commercial construction industry. Our mission is to optimize the way enterprise construction projects are managed by offering precise aerial photography, detailed data analysis, and innovative software tools through a network of FAA-certified and insured drone pilots.  Aerial Decisions is not just a drone service provider; we are your strategic partner in commercial construction. Our hands-on approach to understanding your unique requirements and our dedication to excellence ensures that every flight and every data point is optimized for your success. Trust us to be the eyes in the sky that elevate your construction projects to new heights.

Jim Gibson
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