When a company tells its staff it needs to start cutting costs, it’s not unusual for the general feeling to be worry, uncertainty, doubt and anxiety. However, cost cutting doesn’t always have to mean reducing the amount of staff that work for a company, especially if everyone is needed to perform a valuable service, such as in the construction industry. That said, when companies start to struggle, something has to change. Below are some of the ways the construction industry can, and is, cutting costs.
Estimate Your Costs Accurately
One of the most important things those in the construction industry need to be able to do is estimate their costs accurately at the start of the project. Failing to do this can lead to unhappy customers or the need to finish the job without being paid the extra. The good news is that a good piece of software can now help you to accurately estimate the costs of the project. GoCanvas offers a construction software for small business that can help with all kinds of administration work including estimating costs, staying on top of regulations and scheduling your crew while avoiding the masses of paperwork that are usually involved.
Avoid Scope for Rework
Following on from the point above, another area of construction that costs companies a lot of money is having to rework a project after completion. This leads to a longer delivery, prolonged pay for workers, and greater chances of problems occurring. It’s also not great for a company’s reputation. Preventing, or at least minimizing, the amount of reworking you need to do can help save your company a lot of money. Creating an in-depth plan will help here, as will implementing lean construction strategies.
Hire Multipurpose Labor
Hiring staff who only specialize in one job may be a good idea if you run a large construction company. However, if your company is small, it’s a better idea to hire staff that can do numerous jobs. The benefit of this is that you won’t be paying them a salary when you have no work for them, and they’ll be more adept at managing numerous tasks at once. Achieving optimal productivity from your employees is key if you want to cut costs. It may even be worth investing in some training programs on behalf of your current staff if they are lacking in this area.
Trim the Fleet
Finally, if you have a lot of vehicles, you may want to consider selling some of them, especially if you don’t use them. It can work out a lot cheaper to hire plant equipment if money is tight and the money you’ll make from the sale will provide a significant boost to your cash flow. In addition, if you have road vehicles like cars and trucks, the costs of insuring and taxing these can be quite large. If you don’t need all of your fleet, trim it and save the cash.
Above are just four of the ways you can cut costs in the construction industry. Let us know if this article helped you in the comments.