The construction industry is known to have extremely tight margins, which means that business in this industry have to watch their budgets very carefully during projects to make sure that they can make a profit.
Here are some handy tips to help you to reduce costs on your construction projects and stick to your assigned budget.
Ensure construction estimates are accurate before you start any work
When you start a new project, make sure that your estimates are accurate while you are still in the planning phase. Accuracy is very important while you’re planning a project, because any mistakes that you make now will likely come back to bite you later on, and these mistakes could cost you a lot money.
How can you make sure that your estimates are accurate? You can estimation software tools to reduce the likelihood of human errors on your estimates by building the list of materials that you need for a project, as well as running all the numbers for you.
Software tools will help you to make sure you are making accurate cost estimations. They can also save you a lot of time on in screen take-offs and report generation. If you can work faster with tools like this, this can save you money too, as the work is done quicker and your team are freed up to do other tasks to prepare for the project.
Communication is key
It is very important to communicate clearly during any construction project, whether you’re planning the project or sourcing materials for it. A lack of communication can cause a lot of different issues that can also cause problems with your budget.
When you are planning a project, you need to make sure that every single person involved that should have access to the latest drawings does so, especially if you are going to be working with other companies in different trades. This is very important to do. If different people on site are working from different drawings, this can lead to a range of conflicts, which could be a disaster for your budget if these conflicts aren’t spotted before you get to the building phase.
Communication will be useful to you when you are sourcing materials and trying to develop long-term working relationships with suppliers and contractors that might enable you to be able to negotiate prices. This is because it becomes mutually beneficial for you to source materials for the best price and for the supplier to secure repeat business in the future.
Recognise and plan for potential risks
When you’re in the pre-build stage of your project, spend some time identifying any possible risks that could hinder the project from delays due to bad weather to pipeline risk. This will let you coordinate your project timeline and budget accordingly to protect yourself. It’s important to assign cost and time implications to each of your tasks. This will help you to minimize any expensive surprises throughout the project.
Have a skilled workforce that can multitask
Make it your aim to hire staff that are qualified to fit into multiple roles and are willing to multitask. Your workforce will be able to get more done with fewer staff members.
While the process of recruiting staff might take your longer, it will be worth it, as multiskilled workers are invaluable and can save your business both time and money in the long-run. Treat your staff well too, so you can hold onto that talent you’ve hired.
Effective timekeeping throughout your project
We all know and understand just how important it is to meet deadlines, as they are set and agreed with your clients. While it can be easy to forget about the deadline until it’s getting close, but it is key to keep to your timeline throughout the whole project as any delays can easily contribute to the project overrunning.
Ineffective timekeeping can have a real impact on your business both immediately and in the long run. If you miss your deadline, it is inevitable that you will up having to pay out for some extra costs on any extra labour and materials that you need. It is almost impossible to never have any projects overrun at all, but you can minimise the likelihood of it happening by keeping a close eye on the timekeeping on your projects. This is a good idea, as if deadlines are often missed, this will have a bad impact on your reputation and could reduce the amount of work that you can secure in the future.