Keeping a construction business afloat can be difficult in these uncertain times. Business owners and managers must always strive to improve the business and its performance. The following tips and tricks will help provide stability for the company through effective construction management and lead to greater profits and successful construction business models.
1. Create policies and procedures
As small businesses grow into medium and large businesses, it can be difficult to take the time to document your company’s policies and procedures. Keeping the business running is, and should be your main concern. However, if you’re running your business by the seat of your pants, you need to take the time to write down your policies and procedures. This action can help keep your business on track. Document management makes training new employees easier and faster, and if something happens it ensures that your team can keep the ball rolling in your absence. If you haven’t developed policies and procedures for your company yet, take the time with your team and fellow managers to do this.
2. Focus on people
To retain good employees, you must offer competitive compensation packages, as well as a great work environment. Treat everyone at your company with respect and listen to their feedback. As a construction manager, I look for subcontractors who provide quality work at reasonable prices and develop long-lasting relationships with them. Tools like PlanHub can help you find these companies, no matter where you are working. If you treat your workers and subcontractors well, you’ll attract the best.
3. Adopt technology
While it can be expensive to adopt and implement new technology, most companies and construction managers find that implementing modern construction technology pays for itself in increased productivity and advanced manufacturing. Look for solutions that help you improve your job cost tracking and estimate labor statistics accurately. Construction management software and technology can help you keep more detailed records of your project planning without a lot of extra work, allowing you to provide the construction project documentation you need when claims come up. Adopting lean construction principles can also greatly improve your construction management and productivity.
4. Know your financial data
No one works for free. Everyone’s goal is always to make money. But without accurate financial records, you could be throwing away your profits and not know it. Use accounting software designed for the construction industry and construction business management to avoid time-wasting workarounds. Having the right financial data for your construction firm will improve the accuracy of your bids and lead to higher profits on your jobs.
5. Reduce risk
If you implement the above tips into your construction business, you’ll reduce the amount of risk your construction company is exposed to. The key to business success and construction project management is to learn from your mistakes and be honest with your team about them to help prevent others from making them.
As a construction project manager, it is essential to keep in mind that business success relies on continual improvement. Writing down your policies and procedures, focusing on people, adopting new technology, knowing your financial data, and reducing risk will help you and your employees make more money and improve the quality of your work.
Contractors looking to expand their pool of subcontractors for various construction projects can rely on PlanHub to provide a pool of qualified subs for your projects. Subcontractors looking for projects to bid and general contractors to partner with can also use construction bidding websites like PlanHub as a general contractor software-free resource. To get a demo of how it can help your business, request one today.