Every year the goal for any business owner is to grow and get bigger. In construction the same thing holds true. However, sometimes we become so focused on getting money in that we forget about the money that goes out. This happens in our personal lives too, we worry about making more money when an hour of attention on our personal finances can save us hundreds or thousands of dollars a year. There are always ways to reduce costs for construction and here are a few things you can start incorporating immediately:
- Wasted materials: This is the first, and often biggest expense on a jobsite. Nails, wood, glue, bricks and other materials get wasted because they fall and break or they get thrown on the grown and ignored. Go over the importance of conserving materials with your crew and even offer a bonus if you stay under a materials budget for the job site to incentivize them to help you save money.
- Wasted labor: Everyone is on the jobsite at 7 am, right? Remember, the person who shows up at 7:15 and still has it count for 7 just cost you 15 minutes of labor costs. It may not seem like a lot but if you go through an hour of wasted time each day between longer lunches, talking on the phone, or just showing up late, it can add up to thousands of dollars by the end of the project.
- Scheduling: Whether it’s your own crew or subcontractors, having everyone scheduled correctly can also reduce on wasted labor. For example, if you know that you will need crane rental services all day Friday, you can send your crew elsewhere or you can find something else they can do that day on the jobsite that will keep them out of the way and benefit you.
- Organization: How are the materials organized on the job site? Organization is important because it helps things to be more efficient. Again, since you are looking for ways to save money on the job site, labor is going to be a big part of it. If a worker has to take the long way around to get something they need, try to make a simpler path to save time and therefore money.
These tips may not seem like they will make a big difference. However, if you incorporate them in your next project you will see a big difference in your overall profits when the job is completed.