It’s smart business for any company to try and save money where you can, but those in the construction industry especially need to save money wherever possible. Why? There are a vast amount of resources that go into a project in order to produce a relatively low profit margin, so those in the construction industry place a high importance on saving money so their company can survive and keep building. So, what are some of the best ways to cut costs and save money?
Shop around for the best prices on materials and equipment. Many companies have been using the same material or equipment supplier for years and even though you might feel loyal to them, that doesn’t always mean they have the best prices out there. It never hurts to check market prices occasionally to see the best deals in comparison to what you’re paying.
Invest in quality tools that you need rather than only considering the purchase price and getting cheap substitutes that will most likely need replaced frequently. Always consider the long-term cost of your tools (including how much it costs to operate or repair) and evaluate the impact it has on your business.
Create an inventory of all tools and equipment. Having employees sign those tools in and out will help you to know where all tools are at any given moment and stop them from going missing. Also, be sure that all employees are taking care of the tools to ensure that they last as long as possible. You could even go as far as keeping records for each piece of equipment that log when any maintenance has been done on that specific tool.
Do you provide your employees with any sort of technology, such as a phone, iPad, computer, etc.? Institute a policy of responsibility for any electronics that you might provide for your employees. Make it known that when/if an item leaves the project and gets used for personal use, that person becomes responsible for damage or replacement if it comes down to that.
Measure and make cuts to reduce waste. Not only will this be good for the environment, but do it to also save money, as you don’t want to waste money on excess materials that could end up in a land fill.
Get the most out of your crew by keeping your workers happy. By listening to any issues they might be having, being understanding if they have any conflicts with scheduling, etc., you will ensure that your workers continue to do their best work for you. Also, try avoiding any overtime since it not only costs more but decreases motivation and productivity. Be sure to carefully schedule projects and build in extra time if necessary to complete a job.
But where do the biggest savings come in? By investing in software and technology. Of course, you have to invest in the time and effort it takes to get it all set up and running but it will pay for itself after just a few months. Many companies are getting held back because they don’t see an “investment” as a way of cost-cutting … but what really matters is how much money your company will save in the long run by investing in software and technology that can make every project even smoother and more successful.