Ways To Save Money For Your Construction Firm
Every infrastructure you can see, from houses, condominium, offices, malls, bridges, tunnel, roads, and any other building are completed by the construction industry. The construction industry made up 14.7% of the world’s GDP in 2017. In USA alone, the industry is worth USD $1.18 trillion and keeps 10.3 million people employed. Although the industry enjoys a positive forecast of 85% growth by 2030, it is highly susceptible to financial loss due to over budget and missed deadlines.
Over budget and missed target date plague the industry. Around USD $100 billion is wasted in construction cost globally due to a number of factors like underperforming projects, expensive labor cost, and substandard material. If you are construction manager or owner then you must have felt this frustrations first hand. To help you save money and create sustainable growth for your company, here are some ways to help your construction firm
Create a detailed plan of your construction project. Include details from design, material list, cost break down from excavation to construction as well as schedules of every phases. This will prevent incidents of financial lost due to bad decisions and mismanagement. Did you know that more than 50% of the problem in construction projects is logistics? That includes construction materials, tools, as well as the transportation of your laborers .The more detailed and firm your plan is, the better it can give direction to your project. In addition, include your contingency plans for any incident or accident that can happen from economic to physical aspect.
Constantly monitor data and actively Participate in the Site
Make use of technology available today and come up with accurate stable monitoring system. Monitoring your construction data will keep you on top of everything. This will also allow you to better understand the financial flow of your project as well as recognize the factors that drain your money away. You can effectively solve any problem that can arise when you are equipped with accurate information.
In addition, make sure that you actively participate in site visits. Do not always stay in the comfort of your office but practice visiting your construction site as often as you can. This will enable you to physically check your workers progress and ensure that the project completion will meet its deadline. When you regularly visit project location, you can see for yourself the project development and figure out if there is any material or labor problem on site.
Purchase Your Own Construction Material and Invest in Quality tools
When you choose to purchase your own construction materials, parts and tools you can have the best advantage because you can find less expensive items that your contractor and find quality products of your choice. Around 30% of construction project commit over budgeting by more than 10% of the original financial plan. Purchasing your own material will push you to be more proactive in being cost-effective since you are the one handling the money and budget. You can keep over budgeting at bay.
Opt to Build in Off Season
Another culprit that can affect your construction finances is the weather and season. You can save money by starting your project in off seasons. Building a project in slow times can help you save up to 5% of your construction budget. Materials and construction services are relatively cheaper in off season because there is less demand for it but are well-stocked in suppliers and vendors. In addition, since your contractor is less busy they have more time to spend and focus on your project. Giving you a better service in return.
Consider prefabricated material
Not every project can benefit from it but using prefabricated material can save you significant time and money. Prefabricated materials considerably lessens the time spent on constructing segments of the building and requires few workers for installation process. In addition, you have the option to prefabricated materials like reclaim shipping containers. This kind of material can be used for framing and enclosing a structure. Framing and enclosing is considered a huge cost for a building project.