Life is a roller-coaster, but your business doesn’t have to be. Your business should be buoyed by innovation, investment, and inner confidence, but that all means staying current and hungry. Don’t let your business be dragged down by somebody dragging their heels. Whether you’ve got one employee or fifty, we’ve compiled a list of the 5 biggest things we think you should keep in mind for your construction business to succeed.
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Operations Visibility
Being able to tackle project issues early, make well-informed decisions, boost morale, and have on-time/under-budget projects all sound like a dream, so how do you make it happen? By keeping those communication lines open! Separating head office, management, and the work force is a recipe for disaster. It causes mistrust, misinformation, and miscommunication, which can pull a project to a standstill. Open the lines of communication so all input can be heard by all, and so that objectives, tasks, risks, and expectations are common knowledge from the top down.
If you don’t:
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Reduced efficiency
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Lack of collaboration
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Employee dissatisfaction
If you do:
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High morale
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Completed projects on-time/under-budget
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Less unpleasant surprises
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Embrace Technology
We talked about staying current, and this is the big one. So many companies are still stuck in their overflowing-filing-cabinet ways and insist that they’re up to date, when in reality they are falling further and further behind. Of all of the top 19 major American industries, construction spends the least amount on technology, with only 1% of total revenue!
Don’t look as technology as an expense: look at it as an investment. Though the process you may have been using for years may have worked in the past, it won’t be able to keep up with the progression of technology, and may be a hindrance on not only your interaction with clients, but your overall productivity. Find a good software program or even mobile app that works for you, and start with those. Once you’ve become proficient with the technology, you’d be surprised what a difference it makes.
If you don’t:
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Slow productivity
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Hinder client relations
If you do:
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Increased productivity/efficiency
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Greater control over projects
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Long-term cost savings
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Manage Complexity
A steady stream of work and a reliable employee force are all that most employers want out of their business, and if you’ve already got it, even better. But for those who may not have both (or even those that do), there’s hiccups, bumps, bruises, and set-backs that can pop up along the way. Whether it’s components of a project that you have minimal experience in, multiple sub-contractors and locations, or unanticipated events like severe weather or shipping delays, managing multiple tasks and responsibilities isn’t easy. But have no fear, both of the above tips we’ve given will greatly help with this one. Using technology and open communication can greatly reduce or even remedy the issues that arise over the course of a project. If you have multiple worksites, invest in a Cloud-based program so that ideas can be shared across documents by multiple people, and stay in constant contact with your work force. Maintaining weekly (or even daily) updates and check-ins on big projects is important in avoiding miscommunication.
If you don’t:
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Stalled or stopped projects
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Unhappy clientele
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Reduced productivity/efficiency
If you do:
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Effectively manage projects
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Generate accurate estimates
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Become a more reliable business
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Document Only What Matters
We all know a mom that has documented every ‘first’ in her child’s life, from first step to first haircut to first chewed-crayon-nearly-digested-and-now-framed-on-the-wall, but that doesn’t mean you have to document every part of your business. Documented data should both manage your projects and resolve any disputes. Anything else that you document is simply not important. Keep your staff trained and up-to-date so that the work flow is clear and accurate, and supervision is active.
If you don’t:
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Crowded/noisy data that is unimportant
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Unclear/inaccurate information
If you do:
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More accurate documentation when recorded as it happens
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Executives receive necessary info to manage projects/minimize risk
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Clear, well laid out info that is easily shared/understood
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Get Ahead of Litigation
Litigation is one of the costliest and potentially harmful things that can happen to a company. Facing bankruptcy or failure because of a lawsuit are very real possibilities. Most often lawsuits happen because of factors you can control, but sometimes they happen because of mistakes, accidents, or neglect that isn’t always seen or understood. Use all of the above tips we’ve given to combat this potential factor, and especially rely on your communication and documentation skills to help you out. Lawsuits are widespread in the industry, with about 71% of large construction firms spending over $1 million on litigation, so here are some things to keep in mind if you do end up staring a court date in the face.
Be prepared with all of your relevant documents, especially daily reports that show the close attention you paid to the project; photo evidence of the state of the project, especially if any issues arise; regular spot checks by your foremen should also be noted, including any disputes or defects that they recognized. Do your absolute best to avoid litigation altogether with our helpful tips we’ve listed above.
If you don’t:
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Costly lawsuits that could end in bankruptcy
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Tarnished brand image
If you do:
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Better reputation
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Less costs
All of these tips will help you turn your business into the successful, productive, and reputable brand that you want it to be, at the benefit of you and your customers.
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