Construction projects can be some of the highest cost endeavors in the world. From paving new roads to building skyscrapers, it’s no surprise that managers are looking for new and innovative ways to cut costs while still maintaining the same quality of work. After all, there are two ways to increase profit: increasing how much you get paid, or decreasing how much you spend getting the job done.
The former may be a little harder to swing, especially with an industry as competitive as ours. Without pricing itself near other bids, your firm risks losing out on valuable business. So that leaves us with finding ways to save money on the back end, thus boosting your margins. Here are five ways you can save money on your next construction project:
1. Change The Way You Bid
A lot of resources are used when making a bid. It takes time, careful calculation, and effort to come out on top of a bidding pool. If you bid too high, you risk not getting chosen for the job - and all of your hard work going down the drain. Bid too low, and you’ll struggle to break even on a project where you should have asked for more.
At the end of the day, it’s a probability game, and you can save yourself a lot of trouble just by being a little more selective about the way you bid. Only go after high-probability targets: Projects which you’ll very likely win. Meet with clients before you put in a bid, and vet whether or not it’s a good fit for your company before using up the man-hours that are typically associated with this kind of thing. Your goal is to save time. Cutting down on time spent will impact your bottom line right off the bat, and give you the freedom needed to pursue the best construction projects for your contractor business.
2. Acknowledge Your Crew
Without a crew that respects its leadership, it’s hard to get anything done. Periodically acknowledging your crew can do wonders for morale and productivity. In fact, the more you show your team members that you value them, the more they’ll be inclined to do a great job. It’s motivation through camaraderie, a concept that’s proven to work!
Make sure your crew is taken care of. Buy them lunch every once in a while. Give them paid time off to take care of family needs. Make an effort to not only push them towards meeting construction project goals but also be a part of something bigger - A family. Avoid overtime, as overworking employees leads to drops in productivity. At the end of the day, as long as they’re fully qualified to do what’s expected of them, a happy crew is an efficient crew.
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3. Invest In Quality Tools
Your team’s tools are what enable them to do their jobs. Many companies think with a short term mentality - Cutting costs by buying cheap tools with which to get the project done. In reality, that’s the opposite of what they should be doing. While yes, you may not be paying as much now, you’ll likely have to bear the burden of repairs, and returns as these lower quality items break over time.
Instead, try investing in quality options for your crew to utilize. It may be more expensive at first, but it will pay off in the long run. Having dependable tools will lead to a more efficient workflow and will vastly reduce any headaches associated with malfunctions and breaks. In other words, your maintenance fees will be much lower for a high-quality set of tools, leading their price tags to actually decrease in comparison to budget models.
Related article: 4 Ways To Cut Down On Construction Punch Lists
4. Decrease Material Waste
We all know the costs and hassles related to the disposal of construction waste. Long story short, it’s a double-edged sword: You’re paying for the materials that you used on the project, and then paying again for the leftover waste to be taken elsewhere. That’s why it makes sense to decrease all of that material waste. Being more frugal with the materials you order and where they come from is a fantastic way of squeezing value out of every penny of your budget.
Don’t over order. Don’t dump waste where it shouldn’t belong. Instead, decrease the amount of waste that needs to get thrown away from the site and get better about shipping the right materials for what you need. If you’re looking for extra cost savings - try searching for reclaimed and recovery debris programs. They’ll provide you with great utility at minimal cost overall.
Related article: Submittal and Procurement Registers: How the Quality Control Manager and Superintendent Work Together to Ensure On-time Delivery
5. Use Gadzoom To Manage Your Construction Project Documents
Like bidding, document management can be a huge timesuck. Submitting regulatory paperwork can take hundreds of hours, and has the potential to derail your project before you even break ground. Make the most of the time you have by using Gadzoom to manage your documents instead. With the click of a button, you’ll have access to countless OSHA and EM 385-1-1 approved templates for documents like AHAs, Environment Protection Plans, and much more.
You’ll be amazed at the extra time our product frees up for your business and will find the consistency refreshing as your submissions come back approved time and time again. Our proprietary software allows you to create outstanding administrative construction plans and Activity Hazard Analyses quickly and easily, so you can focus on what you do best. This frees you up to focus on other parts of the business - like making the other four points in this list a reality.
Related article: How to Quickly Create A Fall Rescue Plan
About Gadzoom
Gadzoom enables you to generate important documents in minutes, giving you the freedom to run and manage your business without all the headaches that come with administrative responsibilities. Our company was born to make construction document management as streamlined as possible. Create a variety of government compliant safety and administrative documents at the touch of a button. If you’re interested in learning more, visit our site today.