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How to keep costs low and maximise return on construction projects

Whether you’re a sole trader quoting for residential work or a contractor tendering for a massive project, balancing competitive pricing with solid returns is a delicate act at the best of times. Here are our quick but effective tips on reducing costs on construction projects you undertake in Australia.

Smarter fleet management

The more you use trucks and heavy machinery, the more you face long-term costs in maintenance, fuel, transport and time. Consciously think about how you can maximise the efficiency of your fleet, even if it involves shouldering the short-term cost of new, more efficient vehicles that will net future savings.

Push for material and energy efficiency

Wastefulness is an easy way to start running up costs that could have been avoided. Think about your energy consumption for anything from lighting to equipment and find ways to achieve more with less. The same goes for materials: before dumping any excess, try finding anything that could be recycled for use on current or future projects.

Know your tax

Paperwork is a nightmare for many construction workers who are better at building a house than making a spreadsheet. Thankfully you don’t need a degree in accounting to get something out of it. Businesses can take a variety of strategies to manage their tax obligations, from making tax-free purchases and investments to delaying payments until cash flow has improved.

Outsource secondary functions

Doing everything yourself might seem cost-efficient, but it can actually leave you worse for wear by propping everything up on your own. Save valuable time spent on administration, payroll, IT support and other necessary functions by outsourcing to firms who can do it for you digitally.

Hire the right people

Ultimately, you probably just want to hire staff who get the job done and aren’t a pain to be around – and we don’t blame you. But don’t underestimate how big of an impact your team has on the final cost of a project, based on how much they can contribute and their overall productivity. Focusing on candidates with a great work ethic or even multi-skilled tradespeople is a great way to keep your business efficient and therefore more cost-effective.

Streamline your quotes

Regularly quoting and tendering for work is key to maintaining cash flow. By outsourcing your estimates, contract administration and building takeoffs, you can reduce your overheads and pitch for more work in less time. Letting the experts from OptiBuild take care of the finer details means you only pay when there are jobs to quote – when you win contracts, the service pays for itself. Get in touch for a no-obligation chat about how we can help!

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