Cost Reduction Strategies for Your Next Construction Project
The construction industry requires a vast amount of resources to carry out a successful project. Various costs such as materials, labor, and more have increased in the past year. For more insight on this, check out our previous blog Have You Noticed a Rise in Construction Costs? You’re Not the Only One, where we outlined key factors and statistics impacting costs in the construction industry. Even when project are thoroughly planned and costs are carefully assessed, you can still find your job going over budget or have reoccurring low profit margins. This is the reason why many construction companies place a high importance on cost reduction strategies.
Here are some simple strategies you can apply to reduce construction costs of your next project:
Reduce Electrical Materials Costs
Consider purchasing electrical materials from electrical liquidators. These electrical liquidators buy electrical surplus materials from various sources and then sell them at a competitive price to you without compromising on the quality.
Use Tax-Free Purchases to Its Maximum
Purchase of all construction materials is tax-free. Transaction taxes are only applied when the materials are transferred to the company who would be carrying out the construction. So, you can purchase the materials tax-free and store them in a warehouse until needed. By doing so, you will be delaying the tax payment which leads to immediate cash savings.
Use ConTech (Construction Technology)
Old and outdated technology not only hampers the productivity of the employees but also increases your expenses. Investigate the technology you are currently using and determine options to speed up your operations at a reduced cost.
Consider Alternative Sourcing
Supplies and materials are a huge cost factor in construction projects. Review your relationship with your current supplier. Are they providing the best price? How do they compare to competitors? You can also join a purchasing organization as well for better leverage to lower costs with suppliers.
Create and Manage Inventory of Tools and Equipment
Tools and equipment that is purchased for one project can surely be used for another. Taking inventory of tools and equipment that can be utilized on multiple projects can deter project teams from purchasing more items than necessary for continued operations. Establishing a process in addition to this that trains employees on proper care of these tools can increase the life cycle of equipment as well, reducing costs in the long run.
Do you have an upcoming construction project? We’re here to help!
Contact us today and one of our team members will get back to you as soon as possible to answer all your questions and provide additional insight for any of your telecommunications and construction needs. We look forward to hearing from you.
