Labor shortages in the construction industry are an increasingly pressing issue—particularly for large-scale infrastructure and technology projects where schedule and budget performance are critical. While recent attention has focused on material costs and supply chain disruptions, a tightening labor market may prove equally disruptive.
An aging workforce and diminished interest in the trades drive scarcity in skilled labor, especially in electrical and mechanical disciplines. The result? Higher costs, longer timelines, compromised quality, and increased project risk. Contractors and owners must respond with practical workforce strategies and thoughtful contract provisions to mitigate these impacts.
Key Takeaways:
- Labor shortages are affecting mega-projects, especially in energy and tech sectors, leading to cost increases and potential delays.
- Contractors are using higher pay, training programs, and modular construction to offset workforce gaps.
- Technology tools like automation, robotics, and BIM are helping reduce labor needs and improve efficiency.
- Contracts increasingly include clauses shifting labor risk—through force majeure, contingency fund access, or labor cost escalation provisions.
- Owners can protect themselves with performance bonds, labor market acknowledgments, and carefully negotiated contract terms.
Read the full article here to explore how owners and contractors can manage labor risks and keep projects on track.