On January 24, 2025, the Associated Builders and Contractors (ABC) announced that the construction industry urgently needs to hire 439,000 workers to meet its 2025 demand.
This highlights the significant challenges posed by ongoing labor shortages.
Project owners and contractors should be aware that construction labor shortages could lead to delays in project timelines and increased costs as the competition for skilled labor increases. We recommend that all project participants review their contracts for force majeure clauses, allocation of labor cost increases or renegotiate timelines to account for labor market challenges.
