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Construction firms face delays and cost pressures as policy and supply chain issues grow

by Todd Humber
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Construction leaders are under growing pressure to manage rising costs, contract disputes and supply chain disruptions, according to a new report from Info-Tech Research Group.

The Toronto-based IT advisory firm says the sector faces four major challenges: economic policy uncertainty, unstable supply chains, rising material and labour costs, and a spike in contract disputes. These issues are putting strain on projects and increasing the risk of delays and budget overruns.

A new blueprint, Build Resilience: Strengthening Construction Amid Policy Shifts, outlines steps IT leaders can take to manage risk and maintain operations during economic uncertainty.

“Waiting is not a strategy, especially in construction, where the costs of delay can compound rapidly,” said Michael Adams, a research analyst at Info-Tech Research Group. “Industry IT leaders need to take early, decisive action to mitigate risk, reduce uncertainty, and preserve project momentum.”

A four-step framework

Info-Tech’s recommended approach begins with assessing risk. Leaders are urged to maintain an updated risk register, identify areas of exposure, and create an action plan for possible disruptions.

The second step involves reviewing available resources. The report advises organizations to examine workforce deployment, IT spending, and vendor agreements to ensure they are aligned with business goals.

Next, the plan calls for a critical response strategy, including workforce continuity measures, knowledge-sharing practices, and cost-saving plans.

Finally, the blueprint advises leaders to execute these strategies with confidence, communicate clearly with teams, and renegotiate vendor contracts if needed.

Call for proactive leadership

Info-Tech warns that reactive decisions during economic turbulence can harm long-term operations. By acting early, organizations can reduce uncertainty, keep stakeholders informed, and avoid costly setbacks.

The blueprint is part of Info-Tech’s broader effort to support the construction sector through its research library and IT Critical Response Resource Center.

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