Efficient job sites

How to effectively improve your construction efficiency (tips + tricks)

A construction business owner improving his team's efficiency by using construction tech.

Construction projects are notorious for their delays and cost overruns – both symptoms of larger inefficiencies at work.

But what if there was a way to improve construction efficiency and streamline the entire process?

Explore why it’s important to improve the way your construction company operates both in the office and at the job site. Then, learn actionable ways to begin increasing your business efficiency – today. 

What is construction efficiency?

For a residential construction contractor, construction efficiency means achieving three things.

  1. Completing a project well
  2. Completing a project on time
  3. Completing a project on budget

To accomplish these goals, you must have the right tools supporting your construction processes from beginning to end – from the construction team working at the job site to the tools you have supporting your project management and administration.

Why construction efficiency is more important than ever

Efficiency is always important to keep in mind when running a business. That’s because it can positively – or negatively – impact your construction financials, workforce, project timelines and client satisfaction.

Current market conditions – particularly factors like ongoing labor shortages  – make the importance of efficient operations even more pronounced.  By investing in efficiency-saving measures, you can combat labor shortages, save costs, meet timelines, increase productivity, boost profitability, ensure client satisfaction and maintain compliance. Here’s how.

Labor shortages:

Recent reports suggest the labor shortage is improving – but that doesn’t mean construction companies are out of the woods yet. In fact, the Bureau of Labor and Statistics has stated that job openings are still much higher in 2023 than they were at the same time in 2022. The ongoing scarcity of workers in the construction industry can stall projects and strain your existing construction teams, potentially leading to lowered employee retention. Improving efficiency can mean streamlining processes and removing some tasks from your team’s existing workload.

Cost savings:

Even with cost escalation clauses in place to help protect builders from unexpected material increases, demand for home construction is forecasted to keep costs high for residential builders in the future. Efficiency gains can help counteract escalating costs by reducing waste – both in materials and time spent throughout each phase of construction. This can preserve profit margins, even when times get tough.

Timelines and client satisfaction:

Meeting project deadlines is essential for client satisfaction and maintaining builder reputation. Yet the Association of Professional Builders estimates 31.5% of residential projects run late – with each day costing builders at least $670. By improving project management, you can stick to project timelines, avoiding costly delays and unhappy clients. Remember, this is also important for future profitability, as satisfied clients are more likely to return for future projects and recommend your services.

Productivity:

Labor costs typically make up a sizable amount of a construction company’s total project costs. Considering the added labor shortage challenges, it’s critical you optimize your team’s time while they’re on the clock. Improving employee productivity can mean completing tasks faster without compromising quality.

Compliance:

Construction projects involve many regulations and standards that must be met before you can close out. These might include various codes, safety guidelines, environmental regulations, zoning laws and post-project completion audits. Ensuring you’re meeting these compliance requirements is essential for the safety of your crews as well as the reputation of your company.

8 tips for improving construction efficiency

Residential construction projects can often experience inefficiencies leading to delays and rework. By implementing a few key strategies, you can greatly improve the efficiency of these projects – minimizing these costly mistakes.

1. Slow down and be present in the planning stages

Sometimes, errors are made before a project even begins so to avoid this from happening, you need to slow it down. Devote plenty of time to planning in order to figure out the people, processes, information and materials you’ll need before the project begins.

2. Listen to your staff in the field

Your workers out in the field are your eyes and ears when it comes to what’s really happening during a project. Give them tools to support this effort, providing areas where they can add comments and messages based on assigned tasks, raise issues and report progress.

3. Invest in more training

Training is critical to staying sharp during a project. By helping your employees develop and master critical skills, you’ll be able to reduce additional contracted work while creating an environment that fosters employee engagement.

Each person who steps onto a construction site should have the training and experience necessary to complete their assigned jobs in a safe and timely manner. A construction site can be hazardous, and ongoing training can minimize the risk of safety and compliance issues.  

4. Keep a constant flow of communication

One of the most important parts of a project is communication. Your employees need to know what you expect of them so they can deliver their best results. The best way to increase communication is to adopt mobile technology with messaging and commenting capabilities built in. This reduces miscommunication between your team members, subcontractors and clients.

5. Bring technology on board

Technology-supported processes are proven to increase efficiency within businesses. For example, construction company software can keep track of your daily tasks, schedules, budgets, communications in one centralized place. Automating workflows along the way to lighten your team’s workload without sacrificing quality along the way.

6. Double down on equipment maintenance

Maintaining equipment can be costly, but it’s still more efficient and cost-effective than allowing the equipment to break down from lack of care.

Take a look at how much you earn from operating a particular piece of equipment. Multiply that by the number of working hours the equipment isn’t in use and it creates a pretty clear picture of how much it costs to leave it offline. Regular maintenance is the easiest way to prevent this problem and improve project efficiency.

7. Prioritize job site safety

Despite advances the industry has made in the last couple of decades, a construction site is still one of the most dangerous places to work. In 2021, nearly one in five workplace deaths occurred in the construction industry, according to the Bureau of Labor and Statistics.

Worker safety is an ethical measure first and foremost, as protecting the well-being of every worker should be at the heart of every construction manager’s mission. However, project managers may not fully realize the impact injuries can have on a project’s bottom line, too.

Workers leaving the workforce for recovery and rehabilitation can create extended delays for their employers, particularly in the face of a labor crunch. Then, there’s the financial risk — construction workers’ compensation claims for an injury cost an average of over $41,000.

8. Anticipate supply chain issues

In the last few years, the global pandemic-linked supply chain issues, shipping tariffs and other disruptions plagued construction sites around the country. These variables made it difficult for companies, contractors and subcontractors to meet deadlines and complete projects.

The easiest way to overcome these supply chain issues is to plan ahead and be prepared with construction contingencies if something goes wrong. Keep track of market trends and productivity metrics. Accommodating them in estimates and project plans will help align expectations for both the construction team and clients.

The best software to improve and maintain construction efficiency

When it comes to improving efficiency in the construction industry, Buildertrend’s software stands out as a must-have. Here’s why:

  • Buildertrend offers a comprehensive set of features to improve all aspects of sales, financial, client and project management. It offers real-time collaboration and communication tools, ensuring office staff, construction crews, clients, contractors and subcontractors can access project information in one centralized place. This eliminates the need for lengthy email chains or back-and-forth phone calls, ensuring everyone is on the same page and can make informed decisions quickly.
  • Buildetrend provides an easy way to track and manage project finances. With budgeting and finance tools, construction professionals can easily manage project costs, track expenses and generate accurate financial reports. This helps prevent cost overruns, identify potential areas of savings and ensure projects stay within budget.
  • Buildertrend automates every aspect of a construction project, ensuring materials, schedules, timelines and project to-dos are managed. This reduces the amount of manual work your team has to shoulder – from estimating through to close out – while reducing rework that stems from human error.
  • Buildertrend provides detailed analytics and reporting capabilities. Builders can generate reports on project progress, financials and other key metrics to help identify areas for improvement and overall efficiency enhancement.

Ready to take advantage of project management technology? Schedule a demo to learn how Buildertrend’s software solutions can make efficiency easier to achieve.

Construction efficiency FAQs

Check out these answers to frequently asked questions about construction efficiency.

Construction efficiency can be measured using various key performance indicators (KPIs) such as schedule adherence, cost performance, resource utilization, labor productivity, rework rate and project cycle time. These metrics help assess the effectiveness and productivity of construction operations.

Some common challenges to achieving construction efficiency include inadequate planning processes and coordination, poor project management, inefficient resource allocation, lack of skilled labor, unexpected changes or delays, inadequate communication among project stakeholders, and insufficient utilization of construction software, new technologies and automation.

Construction inefficiencies introduce several risks to projects and organizations. These risks include cost overruns, schedule delays, reduced profitability, reputation damage, legal and contractual issues, safety risks, decreased productivity, quality control compromises and increased disruptions within the project team. These issues can have financial, operational and reputational consequences, impacting the success of construction projects.

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About The Author

Debbie Trecek Debbie Trecek is a freelance copywriter for Buildertrend.

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