Five Ways Construction Companies Can Save Money

In a world of ever-rising costs, many construction firms are looking for more ways to save money.

Construction is already an extremely expensive business as it is and the industry is getting even more pricey. Rising fuel costs and supply chain issues are chipping away at project budgets, and throw in labor shortages and it’s no surprise that construction managers are stressed out. Seeing these

Some operations see these issues and decide to go down the super-cheap route, which almost never works out. Thankfully there are practical ways for construction companies to save money.

Here are five ways the construction business can save some funds.

Install GPS Equipment Trackers

Yellow iron equipment is critical to any construction project. Cranes, excavators and bulldozers cannot be easily replicated by humans, so losing even one of these heavy equipment machines can ruin a project’s progress.

On the surface it would seem inconceivable for an enormous excavator to get misplaced, but it is a problem for some construction firms. A great way to make sure equipment never gets lost is by installing GPS equipment trackers.

The GPS trackers are installed inside the machine and report real-time location data so managers always know and can always check where it is. The tracking devices transmit the information to the server, which can be accessed by managers on the back-office desktop or a smartphone app.

This is especially useful to construction companies working in the wilderness or at multiple sites. If you’re unsure which worksite that bulldozer is at, or where that backhoe was last used in the forest, GPS equipment trackers share exactly where it is. Some products share vehicle diagnostics and after-hours alerts as well so you have the best information possible.

Search for the Best Prices on Materials

Every construction crew should be using quality materials for their project, but that does not mean you have to break the bank. A balance can be hit using adequate materials for the job without spending an exorbitant amount on them.

Things like door knobs, fixtures and countertops can be found for a cheaper price than you might be getting from your contractor. Some alternative options would be looking at reclaimed materials, buying cheaper fixtures at a hardware store, or considering places like Habitat for Humanity ReStore for deals on lightly-used building materials.

Searching out lower prices on materials can be a tedious task, but it will be worth it if you find a cheap and reliable material source. Even though your company may feel loyal to your current supplier, you should still shop around to find the best bang for your buck.

Quality Tools

Lost equipment can stop a project dead in its tracks, and the same is true with faulty tools. Power drills and jackhammers were invented for a reason and are necessary to most modern construction projects. If a few of them aren’t working then a lot of tasks can’t be done.

Spend a little more money up front for quality tools for your crew. The initial price tag will be higher than some other tool products, but the high-quality tools will be worth it in the long run because they won’t break or malfunction as often, which means projects get finished quicker. Lower-quality tools will also have to be replaced more frequently and that cuts into the project budget.

Group Purchasing Organization

They say the whole is greater than the sum of the parts, and that concept also applies in the construction business. Joining a group purchasing organization can help construction firms save money.

A group purchasing organization is a network of suppliers, builders and manufacturers, and it helps companies save money by leveraging lower prices for materials and goods. When large enough, some group purchasing organizations have the combined purchasing power of a top 10 national builder.

Finding deals on materials is also much more difficult to do the traditional way. Group purchasing organizations already have data on materials, vendors and suppliers so you do not have to do the extra work of searching out that information.

Reduce Waste

Limiting the amount of excess materials helps your construction business reduce waste and save money. The first step in doing this is by making sure you order the right materials at the right sizes. Measure everything out to order the exact dimensions of what you need and do inventory checks on a regular basis to know what you already have.

Buying materials with precision will lead to less wasted items on the jobsite and therefore fewer trips to the landfill. And fewer landfill runs means less money going to gas.

There will inevitably be some extra stuff after a project, even if you order everything correctly. Luckily, those materials can often be reused for another project if they are in good condition. Leftover concrete and lumber would have many uses for future projects.

Order the right amount of materials for the job and save money down the road.