Understanding the Surge in Contractor-Related Complaints in the US Construction Industry

Understanding the Surge in Contractor-Related Complaints in the US Construction Industry​

The US construction and remodeling industry is currently navigating a complex landscape characterized by an increase in consumer complaints and contractor-related issues. This trend is influenced by several key factors, including labor shortages, supply chain disruptions, material cost increases, and varying standards in contractor licensing across states.

Labor Shortage and Skills Gap
A critical challenge facing the industry is the significant labor shortage, both in skilled and unskilled labor segments. The Associated Builders and Contractors (ABC) estimates that nearly half a million additional workers are needed to meet the project demand in 2023 and beyond. This shortage is exacerbated by a decline in younger workers entering the skilled trades, leading to a labor and skills shortage that affects the quality and availability of contracting services.

Supply Chain Issues and Rising Material Costs
Supply chain uncertainties and escalating material costs are other major concerns impacting the industry. Contractors have faced project delays, logistical problems, and increasing material prices due to these issues. The cost of construction materials rose by 7.2% in 2022, surpassing the general inflation rate. These challenges have continued into 2023, with contractors adopting various strategies, such as accelerating purchases, finding alternative suppliers, and stockpiling items, to mitigate these impacts.

Impact of the COVID-19 Pandemic
The lingering effects of the COVID-19 pandemic have also posed financial and operational challenges for contractors. Issues such as who bears the cost for health and safety expenditures made during the pandemic are still being resolved, adding to the industry's complexities.

Variations in Contractor Licensing
The regulatory landscape significantly influences the quality of work and consumer protection, with states having different standards for contractor licensing. For example, California's Contractors State License Board, known for its comprehensive licensing requirements, reports a lower rate of complaints compared to the national average. This suggests that more stringent licensing and enforcement lead to better consumer experiences and fewer complaints.

Conclusion
The high number of complaints in the US construction and remodeling industry can be attributed to the interplay of labor shortages, supply chain, and material cost issues, the pandemic's aftermath, and the varying rigor of contractor licensing across states. These factors collectively create a challenging environment for contractors, which in turn affects consumer satisfaction and increases the likelihood of disputes and complaints.

Understanding these multifaceted challenges is crucial for industry stakeholders, policymakers, and consumers alike, as it provides insights into the underlying causes of the issues and can guide efforts to improve standards, practices, and regulations in the construction industry.

 

[Yankee Chronicler]

I would add that another factor is the fact that the new generation of contractors and project managers are often business school educated, with the result that they see themselves as money managers first, and builders second. This trend was already in progress several decades ago, when the "profession" of construction managers first appeared on the horizon. My observation was that the construction managers we encountered (when I was working as an architect) generally fell into one of two groups: (1) former general contractors who weren't good at what they did, and who had gone bankrupt; and (2) current general contractors who had figured out that by re-framing their role as a "construction manager" rather than as a "general contractor," they could convince the owner that they were working for him while getting paid as much as or more than they would have made as a GC, but without the risk of losing money if their estimates were wrong.

Around the 1990s, a general contractor (whose family business soon thereafter went belly up) named Andrew Civitello, Jr., wrote a book entitled The Contractor's Guide to Change Orders. It was basically a road map to show GCs more ways to screw their clients. I've heard that years later Mr. Civitello supposedly repudiated his own book, but that was probably after his family business had tanked and he was probably then trying to market himself as a construction manager. (Not certain of that.)

What I am certain of is that the project managers I've been seeing on projects for the past 15 or 20 years (at least) are not guys who have worked their way up from the trades into the front office. They're MBA types who are big on Gantt charts and schedules and pushing paper around to appear productive, but who don't know anything about building. Couple that with construction documents produced by architects who got the job by offering to do the project for less than any other architect in the area and it's a recipe for disaster.

 

[jar546]

I would add that another factor is the fact that the new generation of contractors and project managers are often business school educated, with the result that they see themselves as money managers first, and builders second.

I agree when it comes to larger construction companies.

 

[mtlogcabin]

This guy has some good videos on the different roles of construction supers, foreman's, managers etc.

Conclusion
The high number of complaints in the US construction and remodeling industry can be attributed to the interplay of labor shortages, supply chain, and material cost issues, the pandemic's aftermath,

This one is on the problems in the current construction industry and basically rebukes the conclusion in the article.

 

[jar546]

This one is on the problems in the current construction industry and basically rebukes the conclusion in the article.

The article is accurate, and the conclusion summarizes the multiple points in the article. Nothing this person is saying in the video is new news; at the end of the day, he is complaining about management, which is the contractor. The licensed contractor starts a company, should train his people, supervise them, and give them the benefits they need to survive. If the contractor does not do that, there will be complaints because of poor leadership of the CONTRACTOR. I'm not sure where your take on this is coming from.

 

[mtlogcabin]

The construction industry has always had labor shortages, supply chain issues, and material cost concerns. It is nothing new. Before cell phones, e-mails and texting I believe contractors, superintendent's and foremen on the jobsite planned better, organized and communicated better in person with others than with the technology that is available today. Today, short fasteners or a couple of tubs of caulk call the local supply store and they will deliver or have it ready to pick up when you got there.

 

[ICE]

Top quality inspection makes a difference. If the inspector was any good at his job, the only complaints would be cosmetic and even that can be mitigated. So let's be honest and accept our part in this.

The job was a wall furnace. The contractor was funded by the Community Development Commission, The CDC is an NGO funded by the County. I don't get the NGO part if the taxpayers are footing the bill. Anyway I was there for a final inspection. I had not been there previously. The owners, a man and his wife were seated on a couch in the front room. The wife was crying. I offered to return at a later date as I suspected that there was some personal catastrophe. The woman was quite upset.

The husband said no and asked me to look at the stairwell. The drywall had been removed to access the furnace vent through the second floor. The drywall was replaced. It looked like they ... well it was bad. So bad in fact that the woman was sobbing.

The contractor and the CDC representative were on the street waiting for me to sign the final on the job card. I handed the contractor a correction slip that said, "Your customer is crying". He actually said that I needed a code section for that.

I did reply. I don't recall the exact words I used, colorful I would imagine. His wife worked for the County as a permit tech, so there was a story that made the rounds... I'm pretty sure that I was the bad guy in that story.

I bring you this tale as an example of how an inspector can prevent contractor complaints.

 

[steveray]

Top quality inspection makes a difference. If the inspector was any good at his job, the only complaints would be cosmetic and even that can be mitigated. So let's be honest and accept our part in this.

The job was a wall furnace. The contractor was funded by the Community Development Commission, The CDC is an NGO funded by the County. I don't get the NGO part if the taxpayers are footing the bill. Anyway I was there for a final inspection. I had not been there previously. The owners, a man and his wife were seated on a couch in the front room. The wife was crying. I offered to return at a later date as I suspected that there was some personal catastrophe. The woman was quite upset.

The husband said no and asked me to look at the stairwell. The drywall had been removed to access the furnace vent through the second floor. The drywall was replaced. It looked like they ... well it was bad. So bad in fact that the woman was sobbing.

The contractor and the CDC representative were on the street waiting for me to sign the final on the job card. I handed the contractor a correction slip that said, "Your customer is crying". He actually said that I needed a code section for that.

I did reply. I don't recall the exact words I used, colorful I would imagine. His wife worked for the County as a permit tech, so there was a story that made the rounds... I'm pretty sure that I was the bad guy in that story.

I bring you this tale as an example of how an inspector can prevent contractor complaints.

I actually cited specs from one of the GA manuals recently for a customer with bad drywall…