How to increase productivity at your construction business
As a construction business owner, you’ve probably grown accustomed to the competitive nature of this industry. You’re likely faced with trying to land jobs before your competitors do, and aim to find ways to successfully outshine them during the bidding process.
Unfortunately, the lack of productivity in this industry can be a disservice to business owners, and may make it difficult for you to get ahead. In this post, we’ll discuss construction productivity and the steps that your business can take to avoid inefficiency.
Examine how your team is working: You may not even realize it, but your team could be the reason that your business isn’t as productive as it should be. Your crew may be taking too many breaks, which is a disciplinary matter that should be addressed. There could also be staffing issues on your end. If you aren’t hiring enough employees to complete a project, you may be over-working your staff, or could be causing projects to take longer than expected.
When addressing construction productivity, you should take these factors into consideration. Ensure that you are appropriately staffed, and monitor employees to guarantee that they are performing their assigned tasks in a responsible and efficient manner.
Work on planning: By planning how you’ll complete a job, the equipment and materials you’ll need and the number of workers required, you’ll save yourself time and money later. Many construction businesses struggle in this area. Per the Construction Owners Association of America (COAA), 63 percent of direct labor time during construction jobs is spent planning how to do the actual work, in addition to other distractions and delays, like waiting for materials and equipment.
Failing to plan could result in being unable to finish a job; which will reflect badly on your company and could cause you major financial issues. Ensure that each time you submit a bid, you’re fully aware of the money and time you’ll need to invest into a project.
Lessen travel time: A major construction productivity issue is not allotting for travel and set-up time. If time is wasted traveling to a site and preparing for the day, your crew won’t get as much accomplished. If a job takes longer than expected to complete, you might risk running out of cash flow for materials, payroll and other costs.
To decrease travel and set-up time, ensure that you take-on jobs in your area. Provide GPS technology to your crew, so that they don’t get lost. Teach crew members how to set up for the day, so that there is no confusion. All of these steps can decrease inefficiency.
Apply for a construction business loan: Having additional working capital available can allow you to invest in your business. By doing this, you’ll be improving the overall quality of your business, which will in-turn increase construction productivity.
Examine your construction business plan, and determine areas of your business that are unsatisfactory. Maybe your equipment is outdated, and it is causing you to be slower on-the-job. Or perhaps investing in state-of-the-art technologies could help you offer your clients better services. By reviewing your construction business plan, you can decide how much money you’ll need, and how you should use it.
By following these construction business tips, we hope that you will be able to increase your business’s productivity. Being a more effectual business will likely allow you to earn more revenue, which should ultimately be your goal as a business owner.
Do you have construction business tips relating to productivity? Share them with us in the comment section below.