Construction is expensive work, and often, it takes a good amount of time to finish. That’s why the field is so competitive.
Prospective clients are looking for affordable prices with time frames that meet their needs. And on top of that, they expect a high quality end product.
That’s a lot of hoops to jump through.
This is why keeping on budget is crucial for any construction company, regardless of whether you’re currently in the red or in the black.
Bid and Estimate Wisely
Obviously your bid is going to have a very big impact on whether or not you get the job in the first place. But that doesn’t mean you should lowball your services just for the sake of getting a contract. By bidding to low, you’re cheapening the value of the company, compromising your own attitude for the project, and potentially keeping yourself away from better paying work.
Bid what you’re worth and what the project is worth. Use construction software to make sure your estimate is as accurate as can be. If the client goes with someone else, your services are better used elsewhere.
Lock in Costs Where You Can
With subcontractors, architects, and engineers, the labor fees of a construction project can add up fast. If you’re not careful, they will eat up your profits. As best as you can, lock these services in at a fixed amount that fits within your budget.
If You Can, Do it Yourself
It can be so easy to simply hire someone to do the work you don’t want to do. Or don’t like to do.
But remember this: your work is always cheaper than someone else’s work.
You’re already being paid for the job. By hiring someone else to do the work, you are giving away YOUR money. Sometimes this is necessary. Sometimes it’s not. Do as much of the work as you can, but at the same time, know your limits.
If it compromises the quality of the project, hire someone else. If you simply don’t feel like doing it, do it anyway.
Remember It’s for You
In construction, you’re building a product for you client. Ultimately, it’s about their needs, wants, tastes, etc. Yes, you are the expert, but they are the ones who need to be satisfied. This doesn’t necessarily help you balance your budget, but the two are connected.
There are a lot of great ways to help keep your budget in control. Cutting corners and brining down customer satisfaction is never one of them. In the end, a great product will earn your future work. A poor product can severely damage your reputation.
And sooner or later, that will have a great impact on your company’s budget.