Making money in construction is about spending less. That seems weird buy every general contractor knows that thousands of dollars are lost on each project in materials and time that are not used properly. Cleaning that up can increase your profit margins without having to increase prices. This is important in the construction industry because it allows you to make more money while keeping your pricing competitive. Rarely does a contractor get to name their pricing on a job. Usually, they are in competition with others and have to have a competitive bid if they want to get the project.
This is why it’s so important to not only save money by lowering costs on the job, but also keep up with the level of quality your clients have come to expect. Here are some ways to do just that:
- Plan ahead for labor: Labor costs are always going to be one of the main expenses on a job. Knowing how many people you need, how many hours and so forth gives you a chance to make sure you are not wasting labor on the job.
- Get bids from subcontractors: Starting early and getting bids from subcontractors is smart because you know who to go with and can get the best pricing before you need to hire someone. Waiting until the last minute can cost you more because you have to hire who is available.
- Strategize equipment and material trips: If you have workers running back and forth for materials and equipment it can be a waste of time and fuel. Try to get them coordinated so that you are making fewer trips throughout the day.
- Explain to your employees the importance of saving on materials: Sometimes a simple conversation about the need to use fewer materials and get the work done faster is all it takes to see better results.
- Offer bonuses: Set a goal on the costs for each project. If your crew hits that goal, offer them bonuses. That will motivate them to work harder and not waste materials.
These are just some of the ideas you can try when it comes to saving time and also lowering costs so that you can hopefully increase your profits on a job. You do not want to diminish the quality of work you are providing people but make sure that you are also doing whatever’s needed to improve your costs for each job.