As a contractor, you’ll agree there’s something immensely satisfying about transforming a job’s blueprint into a fantastic, tangible structure. But there’s one thing that can turn this satisfying feeling into a sour aftertaste for contractors – the thought of being on-site and knowing you’re losing money on the project.
It’s a tough pill to swallow, the idea of knowing you’re not making any money. Sometimes that might even be before the first brick is laid. That’s a bit like hosting a dinner party and knowing you’ve burnt the main course even before your guests arrive. Not only does it make feel like it’s money down the drain, but it’s also not quite the joyous celebration you had in mind, is it?
Here are the three undeniable reasons contractors hate rocking up to a site with a bitter pill of a loss in their back pocket:
1. The Good Old Budget Blowout
Nothing can darken a contractor’s day faster than a project budget running as wild as a toddler with a knife. Suddenly, your meticulously calculated figures seem to have taken a joy ride, leaving you holding the empty wallet.
It’s frustrating when the project costs escalate, and you’ve got no choice but to bear the brunt of it. And if you’ve been that soldier, you’ll know it’s worse when the contractor next door seems to be making a mint.
However, you can turn this situation around! For starters, get a QS to help you out at the tender stage. Bring them on board to measure and rate the job before you submit your tender. And if you work with them throughout the build, they’ll help you keep the budget in check and anticipate potential financial pitfalls.
If you’re going to manage the finances entirely yourself, consider investing in project management software to help keep track of your costs and resources. This will allow you to control your project’s financial health in real time and nip any budget blowouts in the bud before they become unmanageable.
2. The Ever-Present Risk Factor
Every construction project comes with risks – it’s as certain as Monday morning traffic. But what happens when your risk assessments fall short and unexpected incidents happen on-site?
Imagine there’s no fat left in the budget, and suddenly, the PQS is saying you haven’t done something to spec, which means you have to dig into your already empty pockets. That extra few bob you had to cover hidden costs – Gone. Poof. Vanished. Now you’re left to navigate the rest of the job, knowing you’re not only not going to make money, but you’re going to lose money too.
To mitigate these risks, incorporate a detailed risk assessment into your initial project planning.
Remember, a robust risk management plan is not about avoiding risks completely but about being prepared to face them when they arise. Try using risk management software to help you identify, assess, and mitigate these risks effectively. It’s like having your own crystal ball, showing you the pitfalls before you stumble into them!
And about the PQS who caught you off-guard, consider regular consultation with them throughout the project. This ongoing communication will ensure all works are up to spec and any missteps can be corrected before they become a costly issue.
3. The Disheartening Resource Drain
Time, as they say, is money. The same goes for your contractors. Imagine knowing from the outset that your project is going to drain more resources than the local deli during a Monday morning rush hour for breakfast rolls.
In the world of contracting, resources can disappear faster than the last rasher and sausage in that deli! But don’t worry! Start by ensuring efficient resource management. You can do this through smart scheduling of payment claims, keeping a close eye on productivity, and having contingency plans for those unforeseen circumstances.
Investing in resource management software can help you optimise the use of your resources and avoid draining your workforce and materials unnecessarily. Plus, it will make the process as smooth as a polished concrete floor!
Conclusion
So there you have it – three undeniable reasons why contractors hate turning up to a site, already knowing they’ve drawn the short straw.
Turning up on a construction site knowing you’re in for a loss can feel as disheartening as a sandcastle against a tidal wave. With strategic planning, consulting with a quantity surveyor, and leveraging project, risk, and resource management software, you can navigate these choppy waters to build profitably and confidently.
And if it all still sounds like a Herculean task, remember that an external quantity surveying and estimating company, like us at Carroll Estimating, can take a lot of these burdens off your shoulders. We help you avoid budget blowouts, risk factors, and resource drains!
In essence, your journey as a contractor should be about crafting the world one brick at a time, not wrestling with monetary losses. We’re all about helping you turn potential losses into wins – so you can get back to creating the buildings we all love and depend on.
Do you use tools and resources to manage your projects? Which are your favourites and why?