The construction industry is very competitive; mistakes can cost you the best projects and clients. Construction businesses of every size must closely follow industry standards and regulations to keep ahead in the field. There are several common mistakes that construction companies often make that can spell disaster for their future. When you learn from these mistakes, you can take your business much further and avoid pitfalls that lead to serious consequences.
Poor Employee Safety Training
When a construction company hires a contractor, they may assume they’re already familiar and compliant with safety training and regulations. While training may seem redundant for competent new hires, it’s never a good idea to skip or shorten training, regardless of who you hire. Even seasoned construction crews may not be familiar with a particular company or location’s safety standards. They will also need frequent continued education. Don’t assume that your employees will always remember safety rules and regulations. Keep employees regularly educated and trained, and provide refreshers often. Keeping employees safe is a top priority. A lapse in safety training can lose lives.
Outdated Regulatory Compliance
Federal and state-level construction regulations are incredibly important for employee and building safety. There are many regulatory rules and laws to keep track of, and it’s fairly common for businesses to fall behind or delay adherence when regulations change. Construction crews will see the most success when they pay closer attention to regulatory changes. Hiring a compliance manager can help construction businesses stay relevant and updated with ease. Regulations aren’t just nonsensical government rules; they are meant to keep construction crews and structures safe. Take them seriously!
Replacing Equipment Too Fast
Construction equipment must always perform safely and efficiently, or it can cost you a job. Many construction companies replace their equipment as soon as it wears down, which will eliminate the problem but harm your profits. While you’ll eventually need to replace old equipment, you don’t always need to do so immediately. Consider consulting repair technicians first. Repairing equipment can save a lot of money over replacements at times, especially when it comes to large equipment like bulldozers or cranes. Certain parts on large construction equipment, like hydraulic cylinders, can be easily replaced by the right experts, making your equipment last far longer. Hydraulic cylinder repairs typically cost less than an outright replacement. Next time your equipment is malfunctioning, compare the costs of repairing over replacing before making a decision.
Poor Project Management
Construction projects and sites require a lot of oversight and teamwork. Mismanagement of smaller, individual tasks can affect the entire project. If project managers or crews are distracted, it can take longer for projects to complete, resulting in wasted time and dissatisfied customers. It’s crucial to handle all projects with care and efficiency. You don’t want to rush projects, but crews need to avoid dragging their feet, as well. Efficient project managers can mitigate issues that happen during a project, like individual conflicts or safety delays. Projects should have a reasonable timeline, and clients should be regularly updated regarding the project’s headway. Poor project management can shut down a construction business for good.
Ineffective Marketing and Outreach
Construction is a highly competitive industry. While there are always construction projects to bid on, project size and quality matters. The best way to create a competitive business is to market and network your services. Creating professional relationships and partnerships can foster exclusive client connections. Establishing an online presence and marketing strategy makes it much easier for prospective clients to find and learn about your business. If you don’t have an online presence or rely solely on word-of-mouth, you’ll seriously limit business growth. You can hire a marketer if you’re not familiar with the world of advertising; it will make a major difference!
Project Overload
It’s exciting to get your hands on a great contract, but you’ll need to know your limits. If you bid on too many projects at once, you’re more likely to stress out your business and your crew. You will have to overwork your employees, spend money to hire new ones, or cause major project delays. Tired employees are more likely to make quality or safety errors. Clients may not be satisfied with the quality or duration of the project. It’s best to get a good idea of how many projects you can take on and avoid stretching your resources too thin. As your business grows, you can take on more projects, but smaller crews especially should tackle one task at a time.
Limited Adaptability
The construction industry is constantly changing. Safety standards, industry regulations, and technology are always evolving to improve construction quality. If you’re not adaptable to constant change, you won’t be able to stay competitive, and your employees will be at risk. It’s very important to practice adaptability when it comes to construction education, regulation, and project management. The more flexible you are, the more success and growth you can experience in construction.
Conclusion
The secret to construction business success, like any business, is resilience, adaptability, and expertise. You can adhere to all the safety standards and have the best marketing team in the world, but it won’t matter if you don’t bring passion and expertise to your business. Construction businesses often handle a large cash flow from projects. It’s vital to manage this cash well and invest in your team and company. With the right strategies, you can scale your construction business far and wide.
