Major construction overruns are the last thing you need during a project. Although there are always unexpected costs, you should try to minimize them whenever you get a chance. Furthermore, your ability to reduce these expenditures affects your firm’s long-term growth.
According to McKinsey, almost every megaproject has cost overruns of 30% or more. If you think about it, this makes sense, given that a lot of things can change during these massive projects. Investor’s desires often change along the way, and you also have to think about workers and materials.
Because of this, having a well-polished managerial process makes all the difference in the world. When everyone’s on the same page, you can reduce the associated costs and improve your outcomes. In this article, we share a few tricks that will help you do just that.
1. Planning Process
The majority of construction errors occur during the earliest phases. Poor building plans, calculation errors, lack of licenses, and other issues can bring your project to a standstill. Some of these problems will backtrack your teams, forcing them to do the same work several times over.
Besides having a proper workflow, you also need to put emphasis on collaboration. Your team has to think about equipment, materials, workforce, communication, and processes for maximum efficiency. Not only should your team work in cohesion, but you also need to get all other stakeholders on board.
2. Modern Software
Whether we’re talking about day-to-day tasks, finances, human resources, or logistics, you need modern AI-powered software for optimal results. Each of these programs has their place within the hierarchy, optimizing a certain process for the entire team.
For example, with solutions such as time tracking for construction site you increase productivity while minimizing waste. Other programs, like construction management tools, assist you in organizing teams and managing paperwork, while keeping all your data in a single source.
Ideally, you should prioritize construction platforms that unify several tools into a single solution. Given the nature of the business, you will gain a lot of value from mobile apps. These digital solutions can be used while on the field, for relaying instructions and information to all team members.
3. Building Information Modeling
BIM, or building information modeling, is a vital element of the modern construction process. With it, we can showcase the future building to stakeholders and team members, focusing on various features. BIM is a digital representation of the project, outlining different elements of the building.
By relying on visual solutions, participants in the porject will understand how the building will look like when everything’s said and done. This makes it an integral part of planning, reducing risks for investors before they commit any money.
BIM is especially valuable for designers and other construction experts. It helps them determine the size of pumps, heating, and other relevant systems. Among other things, building information modeling takes into account the number of residents and visitors who will go through the building each day.
4. Staff Feedback
We shouldn’t be deaf to staff feedback. Experts on our team can give us valuable insights regarding the project’s viability and current needs. So, to increase efficiency, you must heed their advice and, more importantly, act upon it.
By relying on each team member and their specific proficiency, you can reduce downtime. Furthermore, expert feedback is vital for optimizing different processes and increasing the speed of delivery. Good managers encourage their staff to have an active participation and point out potential project pitfalls.
5. Employee Training
Whether you’re working with the same team over a prolonged period or you’ve just onboarded a new team, you need to provide quality training. Through continuous training, your employees can start using new, powerful software and equipment, hasten their day-to-day operations, and reduce construction risks.
Although training takes some time initially, it will quickly pay off. By learning how to use sophisticated solutions, your team will save time while improving the results. Training is especially valuable for companies that work with the same staff from project to project.
6. Improved Communication
Many people neglect the importance of communication on a building site. However, given that things may go awry in the blink of an eye, it’s vital that all workers stay in touch with each other. By having access to project management tools, each employee can track the progress of specific tasks. That way, they can quickly transition to the next phase of the project.
Besides your workers, communication tech is vital when sharing info with investors and other stakeholders. With these solutions, everyone can stay in the loop and moderate their expectations accordingly. Even if there’s some delay, all participants will know about it the moment it happens.
7. Define Goals
The worst thing that can happen during a construction project is not assigning proper roles and goals. If there’s no accountability, people will do whatever they want without stressing about consequences. The lack of roles and accountability is also bad for workers, as it will prevent top performers from getting their bonuses.
When you properly define goals and milestones, you can reward workers who quickly reach them. In turn, this will stimulate all team members to work together, which will boost overall project efficiency.
We also suggest you introduce various metrics for measuring employees’ ability to reach these milestones. With a proper tracking system, you can easily determine if certain employees and teams are ahead of schedule and if they’re doing a good job.
8. Modular and Prefabrication Construction
Another emerging trend is modular and prefabrication construction. With premade parts, you can make similar profits while reducing various risks. Furthermore, they’re also better for homeowners as they can get their house on demand.
Conclusion
Construction projects can be tedious and complex, with many risks looming on the horizon. While you can’t eliminate every potential issue, you can at least reduce their impact. Through proper planning and software, you can improve your workflows and get better results for your clients.