THE FLOW CHART

Problems associated with the company are as follows :-

Lack of skilled workers

A huge problem faced by the company Navkaar Constructions is that the labor who works in
the firm is not at all skilled according to their demand. The younger lads are in the colleges
and after that they do not want to give their labor to the construction companies and hence
this lack is generated. Though a staffing Agency has been found by the company but still
there exists a lot of deficient supply when it comes to skilled labor. Getting work done
through unskilled labor is risky as they might do it wrong and might end to some huge
losses.

Lack of communication

When things go wrong on a project, it is almost always due to a communication breakdown

along the way. Communication and coordination is key to the road of success but in this
construction company there seems to be a lack when it comes to communication as there
are sometimes technical jargons and semantic barriers as well as most labour is uneducated
and could not interpret top management very well.

Prices vary over different periods

The prices in this industry changes very frequently due to various factors say PESTEL. These
varying prices leads to many problems that it might happen that the products are produced
at a higher price but the universal price decreases, then this leads to sometimes huge losses.

Unreliable Subcontractors

The company have problems finding reliable subs for their jobs. If you are in a pinch and
need to find a sub, check with the materials suppliers and vendors that you work with
regularly. They will have the inside scoop, and may have a great recommendation for a sub.
You can also ask other subcontractors that you have worked with for a recommendation,
too.

High Insurance costs

Contractor insurance is included in the cost of doing business and which leads to an increase
in the overall expenditure. The company is also facing the same problem leading to an
increase in the cost of its products. The company finds it very difficult to change its policy
every year as it is difficult to get that which one is least expensive,

Blue print confusions

There occurred once to the company that there was some blueprint confusion with its buyer
and it ordered material on its basis but then when some other engineer constructed it he
got to know that it was something else and demanded different products. This led to a
dilemma to the company as it had to bear some loss in this regard.

Sustainability concerns

The construction industry is the top global consumer of raw materials. The industry
generates between 25 to 40 percent of the world’s carbon emissions. This volume of natural
resource utilization is not sustainable and could compromise the environment for the sake
of growth. Climate change and water management are two environmental issues that pose
a growing challenge to the construction industry. Achieving targets for global carbon dioxide
emissions reduction will be a major challenge for the construction energy.

Poor productivity and profitability

The company is facing huge problems with poor productivity and profitability. Currently, the
barriers to entry in construction are low, creating a saturated marketplace with heavy
competition. This competition is shrinking profit margins and constraining essential
reinvestment in new technology and better business practices. Stagnant construction labour
productivity is compounding this problem.