Skip to main content

How to Reduce Overhead Costs on a Construction Jobsite

Both private and public construction projects aren’t cheap. In fact, Mortgage News Daily reported that $827 billion was spent on construction in the U.S., as of 2012. This included private nonresidential, private residential, and public construction projects, causing construction spend to rise 6.5% from the previous year.

If you own a construction company, it’s clear that the only way to save money on a day to day basis is to be strategic about where your money goes on the job. In most cases, the best way to save money on a construction site without compromising quality or employee safety is to reduce overhead costs dramatically.

Reducing overhead costs effectively could literally save you thousands of dollars per job. Fortunately, there are several steps that you can take to reduce overhead and still maintain productivity.

Understand Your Finances

It’s no use trying to reduce overhead costs on a construction site if you don’t have a clear understanding of the reality of your financial. If you are working with an accountant, set up a meeting immediately to go over your books. However, you may also want to consider the alternative of using simple accounting software instead of employing an accountant on staff for your company.

If you have a head for numbers, using accounting software will allow you to input daily numbers through a program like QuickBooks, specifically designed to help small businesses manage financial records. Using accounting software instead of a staff accountant can save you thousands of dollars in yearly salary fees.

Vehicle Operating Costs

If you have a large fleet of vehicles, including forklifts and box trucks, it’s important to accurately assess the total operating costs of your vehicle use. Based on the quantity and size of your vehicle fleet, you can determine if it would be beneficial to sell used vehicles or replace older, rundown forklifts with more efficient new forklift models.

For example, 71% of construction owners who were looking to purchase forklifts wanted to buy used, with the hopes that this would keep their costs down.

In addition, if you do have employees that use company trucks on a day-to-day basis, it may be worthwhile to enforce a policy that all employee vehicles must be parked at the construction site overnight. This will help to cut down on the overhead costs of unauthorized use of vehicles for personal reasons.

Green Alternatives

The construction industry has changed dramatically within the past decade to place more focus on raising environmental standards in all building projects. In the same manner, having a “green” mindset could help you to save even more money on overhead costs by reusing items like paper, folders, and other office supplies.

It’s also worthwhile to consider using electric machinery, such as forklifts. This can especially be beneficial for indoor warehouse purposes, as it will cut down on the cost of fuel and reduce harmful emissions that are released into the environment.

If you want to increase your profit as the owner of a construction company, the best place to begin is by reducing overhead on the job site. Paying attention to detail in your finances and making smarter, Eco-friendly choices in your construction materials will help you to cut down on unnecessary expenses to save money each year.

Author: Sylvia is an online writer who enjoys writing articles about how business owners can save money. Whether it’s buying tips on how to purchase forklifts or budgeting tips, she enjoys writing about it.


Popular posts from this blog

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

How does a Prepaid Credit Card work?

Can They Really Be a Solution to Avoiding Credit Card Debt? When it comes to plastic, there are a lot of choices out there. Not only do you have the choice of credit card , debit card, or prepaid credit card, but you also get to decide which financial company you want to use as your card provider. Credit cards and debit cards are both risky. Credit cards can help put you deeper into debt, while debit cards give thieves and collectors access to your entire bank account. A growing number of people are finding that prepaid credit cards are becoming the best option. What Are Prepaid Credit Cards? Prepaid credit cards look and act just like a credit or debit card, except you put the money on the card before you make any purchases. You are only allowed to spend as much money as you have pre-loaded on the card, which means that you are not at risk of going into credit card debt from overspending. These cards also keep your money safe, because thieves will be limited to the amount that is on t

What are the Consequences of Overspending in Life?

How overspending can ruin your financial life? With today’s expenses and their prices, it can be very hard not to overspend. Still, that isn’t an excuse to stray out of your budget. You know why? It is because overspending can only lead to more problems than you think. Overspending can affect your whole life. With all the possible consequences, it may jump from one problem to another. Unpaid bills All the excessive shopping with your credit card can cause steep bills at the end of the month. If you keep on using your credit but don’t have enough money to pay for it in the end, then you’re surely in for a huge financial disaster. This will turn out to be missed payments, and missed payments will ruin your credit report. Missing out on payments will get your credit report marked for 7 years or more. And you can’t get rid of them by finishing them off. Credit report Overspending can cause a chain reaction of events. Once you get your bills due to overspending, it’s possible for you to mi

How to Make Your Title Loans Safe and Sound

Although title loans are tagged as risky, innumerable folks still use them for fulfilling their different financial obligations. Therefore, such loans are not completely bad because their significant use despite the risk factor says a lot of their pros. This makes it vital to discuss how these loans should be used so that the risk factor can be minimized up to a great extent. For those who are not aware of, the risk of title loans crop up in the form of consequences when you fail to pay back the loan. With such a failure, you are surely going to lose your car as well as decrease your credit score further.

Online Small Lenders and Grants For Women

In today’s world women are being more and more prominent. They are hard working mothers. Some are even working to support their entire family because they are single moms.  However the financial aspects of being a working women can be traumatic. Depending on the society you live you women may find it that they are not allowed to work or go to school.  Often times they are kept inside their homes to keep the household running smoothly. However most women find that they can be successful outside of the home and inside the home often doing both at the same time. They are working mothers who are often going to school to better themselves while working in the corporate field. For more information click here .

Money Moves: Imagine Playing Your Financial Life like a Chess Game

To say chess is a popular game would be a gross understatement. Chess, for at least 1500 years, has been considered to be not just a game, but a true test of intellect and character. One can learn a great many things about chess that can be applied to one’s life, not the least of which is one’s personal finance. Chess is a game that requires patience, foresight, and an ability to understand your opponent. Much like your personal finance, these qualities are required for you to come out on top in the end. Here are a few things you can take away from playing chess and use to improve your financial life: