In the construction world, every detail counts! Especially when it comes to managing your costs and identifying potential opportunities. As a contractor, you’re familiar with the visible expenses of a project. But what about the hidden ones, those that sneak up on you?
You’re juggling multiple projects, managing crews, and ensuring timely delivery of your work. But one aspect that often gets overlooked is the cost of site attendances. These seemingly insignificant expenses can add up quickly, affecting your overall profitability.
Here’s a closer look at the unseen costs and hidden opportunities that come with attendances on site.
Understanding nominated suppliers and their impact
Nominated suppliers, those subcontractors directly specified by the client, play a crucial role in delivering the project’s specific requirements. However, their presence on-site often comes with additional expenses that you, as the contractor, need to consider.
Direct costs associated with nominated suppliers
While the value of nominated suppliers’ work is included in your contract, you need to factor in the additional costs associated with their presence on-site.
These costs can include:
Scaffold adjustments.
Window installation often requires scaffold adjustments to accommodate the positioning of the windows. This can be a significant undertaking, requiring your team to dismantle and reassemble the scaffold, adding to your labour costs.
Hole preparation.
Before plumbing contractors can install fixtures, they must break out the necessary holes in walls and floors. This task often falls on your team, adding time and labour to the project.
Temporary power.
If temporary power is required for nominated subcontractors to operate their equipment, you’ll need to arrange for generators, fuel, and transportation to the site, incurring additional expenses.
Hidden costs: Managing deliveries and site access
Beyond these direct costs, there are often hidden costs associated with managing nominated suppliers’ deliveries and site access:
- Quantity checks. Receiving and verifying the quantities of materials delivered by nominated suppliers can be a time-consuming task, requiring your team to check invoices and compare quantities to purchase orders.
- Delivery coordination. Coordinating deliveries with nominated suppliers can be a logistical challenge, requiring you to manage schedules, arrange for unloading, and ensure materials are stored safely.
Maximising efficiency and containing costs
To minimise these costs and maximise efficiency, consider these practical tips:
- Establish clear communication channels with nominated suppliers, including regular site meetings and prompt response to their requests.
- Implement standardised procedures for managing deliveries, quantity checks, and site access, reducing the risk of errors and delays.
- Plan ahead for deliveries, considering timing, storage requirements, and potential issues that could delay the project.
Harnessing Proactive Management
By proactively managing on-site attendances, contractors can effectively control costs associated with nominated suppliers, keeping their projects on track and profitable. Remember, even minor oversights can snowball into significant expenses over the project’s duration.
Embrace Efficiency, Maximise Profits
By understanding the hidden costs of site attendances and implementing effective management strategies, contractors can unlock profitability, enhance project efficiency, and achieve sustainable success in the competitive world of construction.