6 Ways to Make Your Construction Project More Profitable and Less Expensive

Table of Contents

1. Make Your Construction Project More Profitable and Less Expensive
2. From Team to Overtime
3. Acquiring and Managing Your Equipment
4. Can You Waste Less?
5. A Well-Balanced Bid
6. Take Control of Your Cashflow
7. Have You Tried New Tech?

Make Your Construction Project More Profitable and Less Expensive

Making your company more profitable may require running it differently from what you’re used to. Perhaps you need to consider that skid steer for sale which you saw a while ago, rather than carrying on with old equipment? And what else should you be prioritizing?

From Team to Overtime

One of the major lessons to learn in the construction industry is how one factor can have an effect in an entirely different department. For example, you may not realize how a few unhappy workers are affecting your bottom line. Here’s a possible scenario:

• You don’t have a good relationship with your team and don’t take their feedback to heart.
• Not being listened to creates a workgroup that doesn’t feel appreciated.
• Negative attitudes of some of the workers cause them to work slower. Note that they may not mean to work slowly but it has been proven that happier employees work faster and are more productive.
• Because of deadlines, you ask the team to work overtime.
• Now you’re spending more on salaries because you’re paying overtime.
• With workers working slower, chances are you’ll also miss out on any bonus you’re eligible for if you finish on or before the original due date.

Can you see the risk you run by not managing your team well? The low productivity may even prompt you to be even harder on them than before, creating a vicious cycle. But in reality, the real solution is simply being a better leader.

Acquiring and Managing Your Equipment

An aspect that could bother your team is the equipment you provide them with. Does it empower them to complete their work on time?

Outdated heavy vehicles and machines are less efficient, making it difficult for workers to keep to deadlines. This shows the value of acquiring new equipment and budgeting for these expenses. Then, when you see a truck or skid steer loader for sale that you know will benefit your workflow, you’ll have the capital for it. This will be a wise investment for the survival of your company.

It doesn’t stop there, because if you don’t maintain these vehicles and equipment, they will quickly become inefficient or unsafe to use. For anyone in a managerial role on a construction site, it’s vital to schedule routine checks, maintenance, and repairs on equipment.

After all, they determine how quickly you can get the work done, so time spent on them is never lost. Once again, looking after the equipment is another method of increasing your chances of getting the early-finish bonus.

Can You Waste Less?

You may battle to show a profit, simply because you’re wasting resources. Are you putting enough time into calculating exactly how much of each item, from wood to sand or bricks you’ll use? Ordering a lot more for fear of running out is harming your bottom line!

Once the building resources are on the construction site, make sure you look after them well. Locking items away or covering them properly goes a long way to prevent theft or damage.

Back to your team on this one—are you sure they’re using resources wisely? They should do all they can to limit unnecessary breakages, fuel consumption, and other wastage. Here again, if you have a happy team that wants to help you build your business, they’ll make choices that benefit the company at large. But disgruntled workers won’t care how high fuel consumption affects the bigger picture.

A Well-Balanced Bid

You can see there’s a lot to do once the work begins, but also make sure you handle the bidding process correctly. Of course, you want to impress with a low bid but too low means you’re harming your business. Rather bid on fewer projects, doing only those where it’s easier to make a profit.

Take Control of Your Cashflow

While you may love managing the activities on-site, know that your company’s success will be affected by the numbers. It’s your task to keep a close eye on every type of expense. For example, instead of budgeting for a new skid steer’s selling price, remember to also budget for its future services.

Have You Tried New Tech?

While the cost of new equipment is high, never underestimate its power. New equipment may have new technology and features that help you get the job done faster. Also, a new software program may be your key to being more organized in managing your finances. And imagine what better project management or team communication can do. And it’s all possible with tech!

Conclusion

You deserve to come out on top! Leave your mark by creating stunning structures!

Give your company the best chance at success by acquiring a few more good habits.

Thank you for reading!