Cutting costs in any business is important, whether or not the business is absolutely thriving or in a difficult position. However, knowing where to cut the costs is vital. You don’t want to compromise on the quality of the service you’re providing, which is where our tips come in. These are all about maintaining fantastic quality for your customers, whilst also saving some money on your side. So, let’s get into it and help your construction business to cut costs.
Hire Machinery You Don’t Always Need
Our first tip is to consider hiring machinery rather than purchasing every piece. When it comes to construction, unless you’re a very large company, you’re unlikely to need a full fleet of machinery, as much of it will go unused for a large proportion of the year. Not only can leaving machinery unused cause it to potentially deteriorate over time, storing a large fleet of machinery is expensive in itself.
So, have your core set of great quality machinery that you buy, because you use it often. Then, any additional pieces of machinery that you don’t need for every project, consider plant hire. This way, you can still use excellent quality machinery, rather than trying to buy the machinery and having to compromise on quality. You get the same fantastic results, whilst saving a significant amount. As the business grows, you can eventually invest in more equipment, but keeping your fleet to a minimum so you can maintain the highest quality is advised. This way, you will show how good you are at what you do and will then receive return custom.
Ensure You Shop Around For Best Prices
The next thing you can do to cut costs without compromising on the quality of your work is to shop around for the best prices. Just going for a cheaper product isn’t going to guarantee your usual level of quality, but instead, you should look for the best quality products at the most competitive prices. There are now price comparison websites dedicated to construction materials, so you can look for exactly what you need, and it will tell you the cheapest providers. This is a relatively quick task that can save you an awful lot of money in the long run, so is definitely worth looking into!
Buy Bulk If Possible
Along with making sure you’re finding products at the best prices, if you have sufficient storage space, then buying in bulk is a great way to cut costs. Focusing on providers with experience in providing bulk supplies is advised, as you’ll likely get a much more competitive price than if you just bought more stock from a standard provider, as you won’t gain the discount as you buy more. Of course, only buy the materials that you know you will use, like common bricks, packs of timber, packs of renders or pallets of insulation. Consider the materials that are essential to almost every project you work on, see if the price difference is significant enough and then consider buying in bulk. Make sure you have the right storage though before committing!
Make Cuts To Remove Waste
Another thing that you can do to cut costs for your construction businesses is to reduce waste on-site. Make sure that you accurately work out how much material you need for each job and when they arrive properly store them to ensure nothing goes to waste. There are templates for site waste management plans online, to help you manage your site more efficiently, which includes reducing waste, as well as reducing harm to the environment and human health. This is a task that could take an hour or so, but it can also save you money, help the planet and keep your team safe.
Replace Old Technology
Something else you can do to cut costs is to put your faith in technology and replace old devices! Whilst this is obviously an upfront cost, you can utilise intelligent modelling to adjust construction models in real time, which then also relays information about how this could impact cost and labour. You can ensure that you’re building in the most effective and efficient ways possible, so over time, this could save a significant amount of time and money. There are also great job costing software that simplifies the process further, as well as so much more fantastic technology that is now available in this industry. Give this a go and you’ll be surprised at the difference it can make to your construction business.
October 20, 2023
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