Running a successful construction business is no easy task. Not only do you have to produce top-quality work to appease your clients, but you have to do it in a cost-effective way that allows you to turn a profit. Of course, like in any business, there are bumps along the road that can negatively affect your bottom line. Luckily, there are plenty of tips contractors and site managers can use to improve productivity.
Just because you are looking to cut costs on a job site doesn’t mean you have to sacrifice the quality of work that you do. As long as you work hard and implement efficient spending and operation strategies, you will produce top-quality work while improving your profits.
So if you are just going into business for the first time or are looking for ways to improve your bottom line, here are the best ways to reduce costs on the job site.
Developing a strong supply chain is crucial for job site efficiency. One of the best ways to save money on a project is to be proactive with your sending. Instead of buying common materials as you need them, stock up to save money. Not only is buying materials in bulk cheaper, but you won’t have to order supplies for every new project. Instead, you’ll have what you need at your shop, which will save time which means saving money. Buying in bulk also ensures that you won’t run out of material in the middle of the job, which will help the project run smoothly.
While buying materials in bulk is essential to saving money, it is crucial to store them properly. Nothing is worse than spending money on supplies only to ruin them in storage. Make sure you keep your materials in a safe, dry place that is easily accessible.
Don’t rely on retail home improvement stores. While you may need to purchase a small item here or there, you should buy the majority of your purchases through a wholesale dealer. Retail home improvement stores are run with the homeowner in mind, not the business owner, which leads to marked-up prices. Working with the wholesale dealers cuts out the middle man allowing you to purchase quality materials for a lower price.
It isn’t necessary to buy everything you use, especially in the construction industry. Purchasing heavy equipment, trucks, and other power tools can add up and really cut into your overall profits. Instead, you can save money by opting for low-cost equipment rentals. Not only will renting your equipment save you money but it will allow you to use the latest models and technology which could help your company work more efficiently.
Sometimes you have to spend a little money to make a little money. Investing in name-brand quality tools is just as important as investing in quality materials. Strong, durable tools will be able to endure the heavy workload construction sites require.
Have you ever heard the phrase work smart, not hard? Of course, working hard is essential, but not when it sacrifices efficiency. For example, instead of paying labor costs for a team of workers to dig a trench by hand with shovels, consider renting an excavator. Not only will renting a machine save you time, but it will drastically cut down the labor costs. Making small adjustments like that can go a long way when it comes to job site efficiency.
It is crucial to follow OSHA’s safety guidelines in order to run efficient and productive job sites. Practicing proper safety protocols will ensure your workers aren’t injured on the job. At the same time, workers who feel safe will be happier to work for you, and productivity will increase.
Following these guidelines will not only help you produce quality work but will improve your job site efficiency and therefore improve your bottom line.