Boosting Contractor Profits Through Better Coordination on Construction Sites

New Study Shows Improved Collaboration Can Lead to Enhanced Schedule and Budget Reliability, and Reduced Worker Stress

Bedford, MA and Mountain View, CA – A new report from Dodge Construction Network reveals that nearly all contractors in the U.S. and Canada (98%) have encountered significant quality issues—such as errors, omissions, and rework—over the past three years. The report, titled Not By Design: The True Cost of Poor Collaboration in Construction, produced in partnership with Dusty Robotics, provides data-driven insights into these challenges and suggests actionable strategies to improve project outcomes.

The Financial Toll of Poor Coordination

The research shows that poor coordination on construction projects can lead to substantial financial impacts. Contractors report that 33% of their quality issues stem from on-site coordination problems. These problems often result in higher costs, with an average 9% budget increase and a 10% erosion in annual company profit margins. Effective collaboration between trade contractors is crucial for minimizing such issues, yet many contractors struggle to implement coordination processes that work.

Conflict Resolution Skills Are Key

Daily interactions between contractors frequently lead to conflicts, with 50% of specialty trade contractors feeling that most conflicts remain unresolved. The report highlights the importance of conflict resolution skills, noting that effective communication and problem-solving are just as essential as technical skills for workers on-site.

Investing in Collaboration Yields Results

Though 96% of contractors agree that active collaboration improves project performance, few are fully leveraging collaboration tools and practices. Only 18% of contractors use more than three collaborative strategies, despite the benefits these practices can offer. Those who invest in policies, procedures, and technology designed to foster collaboration report fewer quality issues and stronger project outcomes.

Field Workers Need Better Access to Information

The report also emphasizes the need for better tools and technology in the field. Only 11% of field workers have consistent access to the information they need, and many contractors still rely on manual processes like chalk lines for layout. However, a growing interest in automated solutions, such as BIM and digital layout tools, could help close this gap in the near future.

Download the full Not By Design report to explore these findings and learn how contractors can better collaborate to improve profitability.

About Dodge Construction Network:
Dodge Construction Network provides data, analytics, and industry connections to empower construction professionals with valuable insights. Learn more at construction.com.

About Dusty Robotics:
Dusty Robotics offers cutting-edge tools that bring digital precision to construction sites, ensuring design accuracy through automated layout processes. Visit dustyrobotics.com for more information.