Construction is always a challenging sector to work in, whether you are working on the tools or in the office. With pressures around finding and deploying labour, maximising productivity and dealing with commercial and contractual issues, there is always a lot to think about.
However we know that sometimes working harder isn’t enough. You need to work smarter too. Here are three ways you can improve performance in your construction firm:
- Identify your key performance indicator. For many subcontractors, their labour ratio will be vital. That’s sales : labour cost.
- Tighten up your paperwork. Digitise risk assessment and timesheets, then link your timesheets to job costing. This will reduce the risk of quality and safety issues arising. You’ll also benefit from better quality management information to help you plan ahead and improve results. In the South West, people worry that poor internet connections means this won’t work. However many systems now have offline capability.
- Look for trends. Do the exciting, ‘high profile’ jobs really make money? Do those customers pay on time? Look for niche markets where you can achieve better rates. For example, we worked with a small firm who were unnecessarily giving credit terms to domestic customers. By stopping this they were able to improve cashflow. In a very large services company working on with a schedule of rates, we were able to review the build-up of the contract rates to identify how to optimise profits and save millions of dollars.
- Identify your key performance indicator. For many subcontractors, their labour ratio will be vital. That’s sales : labour cost.
About our construction expertise at Wessex Commercial
Our Managing Director, Graham Potts, has extensive experience in construction. Graham initially worked in scaffolding, and latterly lead the sustained growth of an international services business. Elly McNamara, our Customer Relationship Director, works closely with our construction clients. She ensures they have effective performance indicators and job costing in place. Our Practice Management Director, Linda Carrington, also 
brings wide experience in construction. Linda advises clients on contract terms and risks. She also helps them to develop their business and quality management systems.
We’re delighted that as a practice we’re also recognised as a Xero Trade & Construction specialist.
If you’d like some advice for your construction business, get in touch to arrange your free consultation.
