The new construction enterprises bring their share of challenges and problems. If you are planning to build a single-family home or a housing complex, there are many pros and cons that need to be weighed. To help you determine if the project is viable, you may want to consider SWOT analysis. This method of analysis is similar to drawing up a list of pros and cons, but focuses specifically on the strengths, weaknesses, opportunities and threats to your construction project.
A good contractor will possess the following strengths: advanced project management techniques, good knowledge and relationships with subcontractors and suppliers of materials, use of modern technology and machinery, and qualified employees. On the other hand, a strong investor will have established relationships with contractors and subcontractors, and will have been in charge of construction permits and project documentation. The investor will understand the market demand in relation to the construction project and will have the necessary financial capital for the project. If both parts of the construction project show the strengths of the list, the chances of success of the project are better.
On the other hand, some weak points can offset the strengths. Typical contractor weaknesses include resistance to new methods, lack of coordination and organization, inexperienced personnel, and poor relationships with subcontractors and material suppliers. In a construction project, the contractor is not the only person who may have potential weaknesses. An investor who has no prospective buyers, who does not have the protection or support of a supervisory board, who does not want to use the allocated resources and who has hired an inflexible contractor is most likely to fail the project. However, it is not because the SWOT analysis of a construction project shows weaknesses that indicate that the project is doomed to failure.
A successful construction project will give contractors and investors a wide range of opportunities for futures contracts as they have understood how to work together and have developed a well-coordinated project team. Construction ventures also try to offer opportunities to citizens by creating jobs, improving municipal services and promoting economic development, as well as promoting housing and community development.
Finally, threats are the challenges that can sometimes be overcome or avoided, but other times they will seriously affect the construction project. From a contractor’s point of view, some examples of threats include poor geographic location to build, lack of storage space for materials and constant change of direction from the investor or project manager. An investor may find delay in programming and reduction in the quality of construction materials as serious threats to the completion of projects. Citizens may also be threatened by a new construction project due to the disturbance created by the construction and possible loss of green spaces.