5 Tips to Increase Productivity

There are many moving parts in a construction project. From selling and performing services to receiving final payout, contractors must be on top of their game to be competitive. At the end of most projects, the owner will look at the bottom line to gauge financial success and evaluate each area for necessary improvements.

There are a variety of factors that may contribute to cost inefficiencies. Project design errors, inaccurate project estimates, administration errors, scheduling, poor site management, and unproductive labor can all take their toll on a project's bottom line.

Whether you have been in business for a long time or just a few years, here are five tips to help improve your company's productivity. 

Be selective when choosing projects

Know your niche and where you can make money. If you decide to step out and do something new to expand your business, you'll need to determine how to make money with that new venture. It's important to create detailed and accurate estimates, which requires knowing your overhead as well as evaluating the risks and costs associated with each project. It's also important to be aware of your actual costs throughout the project, so you can make adjustments as needed.

Hire and recruit good employees

Hiring and recruiting employees for a construction company is often an ongoing process. Well-seasoned tradesmen tend to move to companies who  attract and retain talented people or go into business for themselves. Recruiting new employees must be seen as a critical long-term investment. Offering incentives may help draw skilled workers to your company. Have experienced employees conduct on-the-job training to help improve the productivity of less experienced workers. Companies that value their employees, reward them for good work, and provide friendly, safe, and healthy work environments are more successful in hiring and recruiting.

Know when to self-perform vs. sub out

Being able to self-perform much of the work on a project has its advantages. It can give you more control over the project and scheduling, as well as increase your overall profit. Sometimes you are better off subbing out portions of the work to increase productivity. However, when you hire a subcontractor, make sure you have a soundcontract in place and ensure they have the proper insurance to protect you and any other upstream party. Each contractor and project are different, and knowing what to self-perform and what todelegate will maximize productivity.

Utilize technology

Over time, construction technology has continued to develop. Equipment, power tools, safety devices, fasteners, and building systems have made the process of hands-on construction quicker, easier, and safer than ever before. Advancements in building information modeling (BIM), estimating, and management software have brought efficiencies to the office. Staying on top of the latest technology can help your company stay competitive.

Review your supply chain

Understanding a construction company’s supply chain is critical in improving productivity. Supply chain is a term used to collectively describe the companies that turn a series of materials, labor, and services into a final product for the client. In construction, the architect or designer, engineers, general contractor, subcontractors, and suppliers can all be part of the supply chain.

Working to build long-term relationships with other companies in the supply chain can empower a team's end goals of reducing cost, delivering greater underlying value to their client, reducing waste, and providing more accurate long-term planning for future projects. A contractor's supply chain should be reviewed periodically and adjusted as necessary to ensure the flow of goods and services to their clients.