7 Simple Ways a Construction Manager can Save Money
Did you know that nine out of ten construction projects experience cost overrun? As a construction manager, you’re probably all too familiar with this reality. As a result, you’re looking for any edge you can get when it comes to finding cost savings.
Here are some surprisingly simple actions that you can take to save money in a way that won’t force you to compromise on project quality:
1. Participate in all stages of planning
You’re not an engineer, but that doesn’t mean you shouldn’t be present for that stage of the construction planning process - you have insights into what is doable and what isn’t.
Construction managers should be dialled in to every phase of planning for a project. Involvement is one of the most effective ways to save money, and one of the simplest.
Poor planning is a sure way to invite cost overruns and delays.
2. Constantly monitor key data
One great thing about being a construction manager today compared to, say, the 1990s, is the available data. With gads of technology at your disposal, you can closely track just about every metric that matters to a construction site, including materials, productivity, equipment usage, and individual worker stats.
By closely watching your data metrics, you can identify areas that are a major drain on your finances.
3. Consider prefabricated and modular structures
It’s not a solution for every construction site, but if your project involves a fairly simple structure you can often purchase a modular or prefabricated building for a fraction of the cost of purchasing all the materials and doing the work yourself.
The savings can be immense. Prefabricated construction can cut the delivery time of a project by a third and/or only require you to hire a few labourers for what would normally be a huge job.
4. Figure out how much you’re worth
When should you hire a contractor, and when should you do the job yourself? It’s a tricky question, and you can easily overspend on both sides. Finding the right balance comes down to determining just how much your time is worth.
5. Buy your own materials
If you do hire a contractor, don’t let them buy the parts—if you purchase the parts yourself, you’ll often find less expensive options than what your contractor will offer. Some contractors may grumble, but chances are they’d rather have the work than not.
Overseeing what materials are purchased allows you to keep costs under control, and you can make changes in one area if another part of the project goes over budget.
This isn’t always the right move: after all, contractors may know best which materials are best suited for the project. But if you’re experienced with the project and know the materials as well as contractors do, take the lead on making the materials decision.
6. Resist the urge to settle on the first contractor you meet
You’re busy, but don’t let that bleed into the contractor decisions you make. Don’t settle for good enough, or fail to interview several candidates.
Research contractors before or after meeting face-to-face. Verify their experience and credentials, and consider using these factors as leverage in negotiations. If a contractor has less experience than others, you can push for a lower price.
Be sure to get a few estimates before deciding. Even if you like the first contractor you meet with, they may lower their price if they know you’re evaluating other bids. Aim for three comparable bids or estimates per project.
7. Partner with high performing suppliers
Making sure you buy your own materials is just as important as making sure you buy them from the right suppliers. For example, Bryson just won best construction supplier to work with, as voted by the public, due to our high level of service, quality products and striving to meet our customer’s needs. A partnership like this, is a direct route to project success.
