Delays are not just scheduling problems—they are profit problems.
In construction, delays are often treated as part of the job. But the financial reality has no forgiveness for why they happened.
With margins hovering between 3–5%, even small disruptions can wipe out profitability. McKinsey reports that on average, 20% of large construction projects run over schedule and 80% go over budget.
Delays don’t just burn money—they erode trust, and jeopardize a project’s overall viability.
Top 3 Daily Delays—How They Drain Profit
1. Trade Handoff Failures
When a trade finishes late, the next can’t start. It’s that simple—and that costly.
A 2024 study found handoff delays are the #1 reason construction tasks slip.
The impact? Crews wait. Schedules shift. Progress halts.
The cost: $15,000–$20,000/day on a mid-sized site.
2. Labor Under-Resourcing
Most contractors can’t hire fast enough. In fact, 89% report difficulty filling roles.
Fewer workers means slower output, more rework, and extended timelines.
The cost: $5,000–$8,000/day in extended overhead and supervision.
3. Material & Equipment Delays
When materials don’t arrive on time, nothing moves.
And when heavy equipment is on standby, you’re paying rental fees for zero return.
The cost: $30,000+/month in material-related costs on average.
Real Projects, Real Losses
Harmon Hotel – Las Vegas, NV
Once a 400-room showpiece, this tower was never completed. After structural issues were discovered in 2008, delays led to legal disputes and eventually to demolition in 2015—without ever opening.
Total loss: $275M, largely due to poor coordination and unchecked delays.
Delays Aren’t Random—They’re Built Into the Work
Delays don’t come out of nowhere. They come from missed handoffs, thin crews, and poor planning. And while they show up in field time, the real impact is financial:
- Idle labor = Lost margin
- Extended supervision = Higher overhead
- Delayed turnover = Lost revenue
Don’t manage margin at the end of the job. Protect it every day the work is in motion.
Solve It Where It Starts: In the Field
To protect profitability, we need to treat delay control as an operational discipline:
- Plan handoffs with reminders + Updates
- Communicate the daily sequence clearly + Reminders
- Align labor and material timing early + Reminders
- Hold trade partners accountable with real-time updates
