Current problems and solutions in Iran's construction industry

Iranian construction projects are a major part of the overall Iranian economy. Unfortunately many of these important construction projects are stalled, delayed and overly expensive due to a variety of situations and conditions. There are five major factors or categories that may have an effect on or play a role in delaying or disrupting a construction project in Iran, they are:

Economic Issues & Financing

International Sanctions

Education

Production Design

Building Materials

The goal and objective of this study and pursuing research paper is to examine and explore the causes and main consequences in Iranian construction practices. To better understand the obstacles that many construction projects in Iran face and to implement new ideas and methods, to find possible positive solutions to these problems and perhaps promote and develop an ideal construction industry and practices in Iran.

Economic Issues - Inflation has been growing and increasing at or near a 25% rate per year. This leads to rising cost in materials and labor and can result in difficulty starting a project or keeping projects funded throughout. This high inflation rate along with a weak private sector in Iran are two economical issues that plague the construction industry in Iran. Start up capital and financing is difficult to access in Iran as well. So much of Iran's economy is dependent on oil and gas prices.

International Sanctions - Because of unfriendly terms with most of the rest of the world Iran does not benefit from technological advances in equipment and methods. Also because of international sanctions Iran has difficulties gaining foreign investors for any projects. With sanctions comes lack of funds and lack of experience, neither of which are good things in the construction industry.

Education - Proper training and training opportunities are not available in Iran to construction workers. This lack of industry knowledge and education often adds confusion and uncertainty in construction which slows down work and can also cause safety hazards.

Production Design - The regulations that are in place in the construction industry are largely put in place by industrialized countries like Canada, New Zealand and The United States. These strict regulations on design are often not able to be met by Iranian construction crews, the money, technology and knowledge just is not available. Engineers and contractors in Iran do not have computer software available to them in order to design regulation building that will be safe and cost effective.

Building Materials - The materials Iran has are far from meeting international standards. They use low quality and substandard, the budget just is not there for quality materials. Also it is very difficult to order materials to be shipped into Iran and if it is possible very timely. Concrete, Iron, ceramics, pipes are important in the structure of buildings and in Iran a lot of times these materials are substandard and would not withstand an earthquake or other significant trauma.

Iran must explore new and better ways of constructing buildings so that safety becomes the most important factor. By looking at and examining the obstacles that the Iranian construction industry faces and gaining a better understanding of these is key to ensuring that in the future there is a chance that construction in Iran is safer, cheaper and overall better for everyone. Positive solutions can come from this research and study and new, safer methods and practices can be implemented to ensure that construction in Iran is successful.

Conclusion

In conclusion it is apparent that Iran must explore new and better ways to fund construction projects and programs as well as find ways to ensure that the buildings that are built are constructed safely. The obstacles and issues that Iran faces in the construction sector are numerous and will be difficult to overcome, but to study and better understand these obstacles Iranians can learn from past mistakes and implement new ideas and methods to improve the quality of Iranian construction work. Finding positive solutions to Iranian construction issues would greatly help out Iran's entire economy and society as a whole.

Construction delays are a constant struggle in Iran because of some major national issues. Inflation is at a ridiculous 25% causing high labor and material costs. This high inflation along with Iran's weak private sector are two harsh factors that Iranian construction companies face; loans, startup capital and financing are scarce as Iran's entire economy relies so heavily on oil and its market price. This one dimensional economy along with the fact that Iran and its government have a negative standing with the rest of the world cause Iran's construction industry many problems. These state and economic obstacle factor in all of the problems and struggles facing construction in Iran.