What are your reasons for being in the commercial construction industry? Cheshire construction company are a building project firm that is built on solid family values, and years of experience and value.
- Are you making a profit or losing money?
- Are you hitting your profit target goals?
- How can you tell if you’re right?
A survey of over 2,500 managers and owners of construction businesses revealed that less than 40% had written net profit margins.
There are likely to be problems that affect your profit margins.
These are the questions you need to answer. Do you have trouble with:
- Poor takeoffs
- Estimating problems
- Workflow problems
Do you also know what is wrong with your company?
Here are some ways to increase your profit margin in commercial construction. These are not as difficult as you might think.
Automate your bidding processes
Your bid processes will be more efficient with automation than manual ones. Your teams won’t be frantically searching for data or drawings scattered across the web. It can be difficult to work in an environment where everyone is looking for these things. They are located on different platforms, devices and files.
Automation is an all-in one estimating solution that frees your estimators from the burden of manually estimating and takingoff errors, which can prove costly for the commercial construction profit margin.
A cloud-based digital construction software can be used
All estimation data can be saved in the cloud with digital estimating software. They are available 24 hours a day. Anybody can access the information from any location, whether they are at work or on the job site. Everybody is on the same page and working with the exact same information in real-time. You don’t have to worry about losing profit from spreadsheets or paper-based processes. All of these are errors.
Use digital takeoffs
A solid takeoff is a key component of any estimate. The use of automation tools is strongly recommended by Delta University.
Manual takeoffs can take up to two weeks before they are reviewed. Digital takeoffs are 50% faster than manual ones and can be eliminated. Takeoffs that used to take weeks can now be done in days, or even hours in certain cases.
Estimators must accurately calculate the quantities of equipment, concrete, wood roofing materials, wiring and plumbing supplies. Even the smallest items like screws, hinges, nails, and screws.
Create accurate estimates
Trying to figure out why your bids keep falling?
Your estimating process is a good place to start. If you still use spreadsheets, you are likely to have more problems than you can handle.
When it comes to producing estimates that are accurate, human error is something you cannot afford. Spreadsheets can be prone to errors. Spreadsheets are prone to errors.
These unreliable spreadsheets can cause miscalculations that result in loss of money.
Neglecting to estimate correctly can lead to a loss of profits and a reputational disaster. One example: A $118 million project to build a Veterans Home in California was estimated. The project ended up costing more than $230million.
Automate your workflow
In recent years, workflow management has moved from paper and pencil to digital software that automates the process. Digital workflows:
- Eliminate bottlenecks
- To improve the way people work together to accomplish things,
- Facilitate smooth flow of projects from one stage to another.
- Individuals should be held accountable for their contributions to projects.
This is similar to the Gantt Chart: Record the jobs, who’s responsible and how long it took, but only digitally.
Digital workflows make it possible to move away from paper. They eliminate the need for tedious work and redundant documents.
