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Construction Budgeting: How to Spend Less While Getting More Done

Wednesday, 15 March
Office Engineer-cm

In the construction industry, hard work is one of the most powerful currencies. Project managers and craftsmen alike understand that getting the job done requires a little elbow grease and a whole lot of grit. However, there are times when doing less can get you more, especially when it comes to spending. Construction leaders who can find out how to get more accomplished while saving more will find success above their overspending counterparts. You can always cut moderate costs here and there, but tackling the big saving strategies is where the real change takes place.

Seek out multiple offers from suppliers.

The effects of supply chain shortages are still being felt across the industry, making it harder to source certain materials within tight deadlines. Project managers can use this harsh reality to their advantage by pitting suppliers against each other in bidding wars. They’re more likely to come down on prices to make up for increased wait times and decreased flexibility in an effort to maintain clients during this prolonged rut. Shopping around might require a little more time commitment, but it’s worth the extra savings in the end. You might even strike an ongoing deal with some suppliers for long-term savings.

Compare equipment rentals and purchases.

Equipment always seems like an unavoidable expense, because there’s no shortcut to using the right equipment to get the job done. If your construction business requires a specialized tool for a new job or needs to replace a damaged piece of equipment, don’t jump into buying mode right away. Take the time to compare the cost of renting versus the cost of purchasing the equipment to determine which is more economical. It might make more financial sense to rent tools you don’t use often. Plus, you’ll save on valuable space.

Keep your employees healthy.

In the construction industry alone, work-related injuries cost businesses upwards of $11.5 billion per year. Although injuries aren’t 100% avoidable, construction managers should do everything in their power to keep their employees safe, healthy, and happy. The cost of hosting regular safety demonstrations, investing in high-quality safety equipment, and constantly reminding employees about best practices pales in comparison to the expenses associated with having craftsmen fall victim to an injury. This requires ongoing, two-way communication between management and teams so everyone’s on the same page and any potential issues are addressed quickly.

Invest in construction-focused technology.

Construction software has the potential to save project managers big time when leveraged properly. Sure, there’s a learning curve and upfront investment you’ll need to make before the technology starts paying off. When everything is up and running, though, the savings are permanent and ongoing. Making an investment to save money might sound counterintuitive, but construction software can help businesses save in numerous ways. The right application can work to reduce operational costs, improve productivity, decrease expensive delays, save on material expenses, and so much more.

Work with staffing professionals.

Hiring new employees is essential for fueling a construction company’s success. But, with an average employee turnover rate of 21.5%, it’s also one of the biggest expenses for managers. Instead of blowing even more money on building a committed hiring team or overhauling your hiring strategies, it’s significantly more cost-effective to simply outsource your staffing needs to a hiring professional. These experts know how to pinpoint the perfect craftsmen based on your needs. That means a better fit, greater productivity, and fewer costs.

Tired of seeing a low return on your hiring investments? You’re in the right place! At Madden Craftsmen, we specialize in helping local construction leaders find top-tier craftsmen. No matter what kind of needs you have, we’ll find the perfect talent to get the job done. Start by filling out a job order or check out our employer resources.

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