Small and medium enterprises precisely known as SMEs in our country are an important and integral part of our nation’s growth in the economy. Other integral development in our country is largely based upon the SME’s. Skill shortage in the construction industry is persisting throughout the century in all levels of management. But there is very little evidence for skill shortage in the management level of construction industries. Skill shortage directly impacts the project outcomes in terms of profit validity and other aspects. Skill shortage in the workplace not only impacts the particular employer it affects the overall organization settings. This study will discuss more on skill shortage causes and factors and how it impacts the project outcomes and how it impacts the organization set up and the methods and other aspects to mitigate the skill shortages.