Any project can go wrong. With a risky industry like construction, any seasoned worker knows that the work is subject to weather, disaster, and other hazards. When you’re running a construction operation, you always want to keep your costs as low as possible. It’s good for your business, good for your staff, and great for your clients. But for some labor-intensive projects, your budget can get out of control quickly. Here are our top five strategies to help you maintain a tight budget.
At least half of your costs can be lost from poor handling of materials. Set yourself apart from the competition by accessing the best resources to help you manage your inventory. One of the fastest ways to bleed money is a mismanaged inventory system. You never want to be that business with inventory sitting somewhere not being utilized because your team couldn’t stay organized. Wondering how you can make the most of your inventory?
- Know exactly what you need – make a list if you have to of exactly what materials you expect to use. Write it down on a piece of paper if you need to.
- Turn to tech – innovations are everywhere, so check out some of the latest inventory management advances (try an updated software system or add RFID scanning to your process)
Having an accurate cost assessment before the project begins is a great way to keep your money in check. You want to clearly identify every task, what materials it will require, the labor involved, and how long the task should take. You can up your estimation game by studying past estimates for similar projects to learn from your previous experience. You can also try to develop your relationships with suppliers to try to get the most accurate numbers. Communication and planning are everything, throughout the entire construction project.
We know this sounds like an impossible ask, but delays are a huge factor in proper project execution. If you face a suspension in work, the project’s cost dramatically increases for multiple line items. You can avoid delays by making sure your team is always working in a safe and responsible way. Injuries and mishaps can push a project’s deadline later and later, especially if there’s a serious incident. Review all trainings regularly and be sure your staff is abiding by all OSHA standards and regional regulations.
Hiring multitalented workers can be a challenge as well as a benefit. You, of course, want extremely talented staff members on your payroll, but you have to make sure you’re delegating effectively. Make sure you’re maximizing the potential of each worker. First, find out what specialties each worker has. Those with specific experience should be assigned to matching tasks, and those with more generalized skills should carry out simpler duties. You can save money by following up staff responsibilities: make sure that you’re not having a worker with years of electrical experience manning the stop sign.
Any construction professional will tell you that communication is everything on site, and there’s a reason for that. Most major mistakes can be avoided with a little clarification. Find what works for your team. If you know your staff members can’t always mail back right away, maybe walkie-talkies are the way to go. If you’re sensing some confusion with which team members are responsible for each task, create a color-coded visual in a common space so every worker can check their assignments.
As a manager, you want to have the best talent at your disposal. If you’ve got multiple projects to conquer, you need to assemble a top team. CCS Construction Staffing knows the struggle of hiring the right team members and can help you navigate through the process. Check out our website today to learn more about bringing top candidates onto your team to boost your productivity to the next level.