Saving money is important in any business and here are a few cost cutting tips for a construction company. Construction companies have particularly high overheads to cover – and these costs are only getting higher as legislation continues to tighten up. Fortunately, there are still many ways in which construction companies can cut costs in order to maintain a healthy cashflow. Here are just some of the biggest ways to save money as a construction company.
Invest in tools that last
While skimping out on cheap tools can save you money upfront, you could end up paying more in the long run. Such tools tend to break more easily – which can mean more frequent repairs and replacements. Mid-range high-quality tools are likely to last longer, and you’ll likely save money in the future. This is something to consider when acquiring everything from gloves to cranes.
Hire infrequently used tools
When it comes to equipment that you don’t use on a regular basis, it’s often more sensible to hire this equipment for each use rather than buying it. Unless you plan on hiring this equipment out to other companies yourself, it will spend most of the year gathering dust. Hiring equipment costs a fraction of the cost of buying equipment. You also don’t have to worry about maintenance costs when hiring. There are hire vs buy calculators that you can use online to work out whether buying or hiring is the best option for you.
Shop around for materials
This might seem like an obvious way to save money, but many construction companies often don’t take full advantage of it. Once you’ve found a reliable and affordable supplier, it’s easy to depend on this supplier out of convenience. However, every few months, it can be worth taking the time to shop around just to check that there aren’t any cheaper deals out there. You can often find unique deals from specialist suppliers such as offers on red diesel from FuelBox. Make sure to only buy from trusted sellers so that you’re getting good quality materials.
Store and secure tools and materials properly
Tools and materials can be stolen, mislaid or damaged if not stored and secured properly. This could include temporary shelters on construction sites and locking tools away, as well as keeping daily inventory records to determine which materials have been used and to ensure that all tools have been returned to their rightful place. When it comes to materials, you can also prevent damage and theft by scheduling orders for exactly where and when you need them so that materials aren’t sitting around unused for long periods of time.
Put excess construction materials to use
Finding ways to reduce waste materials can also help you to save costs. This could include re-using leftover materials for other small construction jobs or selling them to other buyers (there are many people out there willing to buy leftover wood and bricks). This guide at Dig This Design offers a few tips on how to put excess construction materials to use.