The Easiest Places to Cut Operating Costs in Construction

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In construction, every dollar makes a difference. Anyone who works in the industry knows how easy it is for a project to run over budget, but resolving the issue may be easier than you think. Operational costs may be behind your project’s monetary issues. Luckily, there are a handful of ways you can take action and turn your budget around.

The key to saving money in construction is productivity and efficiency. Increasing performance in these two areas will help reduce day-to-day costs all around. Let’s dive into the five easiest areas to tackle operational spending on your project so your team can work smarter, not harder.

1. Maintenance

Equipment repairs can be some of the most costly operational expenses on your project. It is unavoidable for tools and machinery to break down once in a while, but there are steps you can take to ensure it happens less often.

Being proactive about inspecting tools and equipment regularly will help catch potential problems before they become expensive repairs. Even if this adds a few extra minutes to a task or shift, taking the time to look over equipment and make small adjustments could save you hundreds or even thousands in maintenance costs.

When things do need to be repaired, make sure to keep track of exactly what happened that led the item to break toat avoid a repeated error.

2. Technology

Utilizing automation on construction projects has been cited as the number one way to save money. This is one of the best ways of boosting efficiency, as well, since it will free up the time that team members spend on repetitive tasks. That time can then be spent more productively, which will not only save your project dollars but countless hours, as well.

There are many niches of your project where automation can be applied, from financing to site surveying and autonomous machinery on-site.

Along with implementing automation, utilizing technology for data storage and materials tracking is another great method for saving money. Print documentation is bulky and expensive to print. When archives of project data are moved to a digital platform, however, they can be easily shared for free via email and won’t require any filing cabinets or expensive storage equipment.

Similarly, using a drone for site surveying will shave off countless hours spent on ground surveys, save money, speed up project timelines, and offer more detailed results.

3. Employee Knowledge

Offering more training for employees can save you money in the long run. Statistics have shown that human error is responsible for a staggering 90% of accidents at construction sites. This means minimizing human error at your site could reduce the cost of repairs and rework substantially. It would also significantly improve productivity. An estimated 35% of construction workers’ time on-site is spent doing things like searching for product info.

Spending the time and resources to ensure all of your team members know how to use the tools and equipment at your site could be a budgeting game changer. Employees get the benefit of increased education on the job and everyone enjoys the jump in productivity when team members know exactly how to get the job done. Even little things like notifying team members where equipment instructions are stored could make a huge difference.

4. Careful Tracking

One of the easiest ways to make sure your operating costs stay within budget is to minimize small expenses. While they may not seem like a big deal at the moment, they will add up quickly.

Examples include lost tools and little parts or damage to company techs, like laptops and tablets.

Keeping a detailed inventory of all of the tools on your site is one of the best ways to save money on projects. This way, you’ll know if an employee accidentally leaves the site carrying a company-owned tool.

It will also help reduce the likelihood of items going missing if team leaders are diligent about having tools signed out whenever they are in use. This will give you a starting point if an item gets lost since you will know who the last person using it was. Additionally, an inventory will allow you to see the big picture on your site: what tools or parts are being used the most, and what things tend to get broken or lost most often.

Along with tracking objects around your site, one way to increase productivity is to implement time tracking for tasks. Having employees keep track of how long certain things take them around your site will allow you to zero in on areas that could be improved by automation, more staff, or better training.

Saving Smarter and Building Better

Saving money is a sign of a responsible project manager who cares about the success of their team. The same things that allow you to reduce operational costs at your site will also help create a more efficient and productive work environment: one where employees can spend less time looking for tools and more time using them.

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