Construction costs are rising and that means smaller margins for builders who still want to create and build competitively priced homes. Sacrificing things like quality or time for money may reduce costs in the short term, but are likely to backfire in the future with unhappy clients and a loss of overall business.
Thankfully, there are ways that home builders can reduce costs. Through the use of newer materials and technologies, it’s possible to help keep costs down, allowing your business to not only prosper, but grow.
Communication is the key to everything. In the building industry, poor communication can lead to delays, lost time, and ultimately lost profits, as well. Communication between homeowners and Pros often breaks down because homeowners are unsure of the process, when and where to communicate, and who on the team to communicate with.
Using messaging technologies meant for groups, and for builders in particular, can help eliminate these problems. By making sure that a homeowner knows when and what is happening and who their contact is at each stage of the game can mean the difference between a successful project and one that ultimately ends up costing too much money.
Better Quality Materials
You’ve probably heard the old adage that you need to spend money to make money, and the same applies here, as well. Better quality materials are easier to install and often cause fewer problems on the job site. This means that they cost less in labor and can help ensure a timely finish to a project. Better quality materials also last longer, which means that homeowners are more likely to pay a premium for them, which in turn means lower costs to builders in the form of labor costs not being eaten up by material costs.
A good example of this is fiber cement siding. Fiber cement is a durable, easy to use material that can come pre-finished, so there are fewer associated costs with installation. With fiber cement, there are also fewer problems after installation, which means fewer callbacks by unhappy homeowners.
While it’s tempting to keep everything in house, this isn’t always the most effective use of your time or your budget. Outsourcing project management often costs builders less in man hours than keeping things in house. This is because as a builder, you need to wear many hats, overseeing all pieces of the operation. By taking on too much – in this case, the management – it’s easier to make errors and it slows down production, which can increase costs overall and result in lost time and money for you.
Project management can often be done on a freelance basis or through project management companies whose sole purpose is to make your project run more smoothly.
Invest in Manufacturer Training
You probably already know that most material manufacturers offer training. But did you know that taking that training may help you reduce costs? Manufacturer training helps ensure that you’re up to date on the latest techniques and procedures and that you know how to install the material properly in the most efficient way.
While trial and error can certainly get you there in the end, making sure that all new employees are familiar with the material before you put them on the job can go a long way toward keeping labor costs down, as well as reducing waste on that product. Many manufacturers offer this training for free, making it an even more cost effective way to enhance productivity on the job site.
Grow Your Business More Effectively
Keeping costs down in building isn’t just about funding your business today, it’s about ensuring its growth tomorrow, as well. Use these new ways to help reduce costs and see your business grow in the future.