Research Reveals Root Causes Behind Construction Project Delays

New research from STARC Systems, developed in partnership with Construction Dive, reveals that project delays have become the norm across the construction industry — and that many of the most impactful causes are preventable.

Based on a survey of 150 construction leaders, the report finds that only one in three contractors say most of their projects start on time, while more than half of delays last one to three months or longer.
While labor shortages remain the most commonly cited factor, the research shows that planning, procurement and coordination gaps are among the most overlooked contributors to schedule delays.

Key findings from the report include:

• Only 1 in 3 contractors say most projects start on time
• More than 50% of delays last one to three months or longer
• Labor shortages are the top driver, cited by 48% of respondents
• Contractors report multiple downstream impacts, including reduced margins (81%) and increased labor costs (73%).

“What stood out is just how normal project delays have become — and how deeply rooted the causes are,” said Mike Lauze, senior vice president of marketing and growth strategy at STARC Systems. “Contractors understand the pressure points. The opportunity now is taking earlier, more intentional action to reduce risk before projects begin.”

While external factors like labor availability, supply chain volatility and weather remain difficult to predict, the report highlights a growing shift toward controlling upstream decisions.

Top-performing contractors are increasingly:

• Engaging procurement teams earlier in the project lifecycle
• Improving coordination between preconstruction and field teams
• Rethinking how materials, equipment and jobsite setup are planned
• Standardizing approaches across projects to improve consistency.

Enhanced project planning was identified as the most effective strategy for reducing delays, cited by 79% of respondents.

Despite its impact, procurement remains underutilized in delay prevention. Only about half of contractors include procurement teams in decisions related to project start readiness.

At the same time:

• 25% of contractors cite vendor management as a key delay-reduction strategy
• Nearly two-thirds (62%) still rely on just-in-time inventory approaches, which can increase exposure to delays.

The findings suggest a major opportunity for contractors to reduce risk by rethinking how materials and equipment are sourced, managed and deployed earlier in the project lifecycle.

The report points to an industry at an inflection point: while delays are widely expected, leading contractors are moving upstream — focusing on early-stage decisions that improve jobsite readiness and reduce uncertainty. By integrating procurement more strategically and adopting more standardized, repeatable approaches, contractors can better control outcomes in an increasingly unpredictable environment.

Download the report: https://info.starcsystems.com/project-delays