Taking that big job may be out of your reach if you are a builder with excessive overhead costs. You, however, should not allow the upfront expenses determine the types of jobs you bid for and accept. Here are four ways to reduce overhead costs so that you can consider every task on the market.
Reduce Vehicle Fleet Costs:
You may not regard fuel as a significant expense. Gasoline and diesel, however, can become a significant factor when you have to fill up several times per day.
The best way to reduce costs associated with fleets is to lower the amount that you pay for fuel. Tell your workers to turn off equipment that is not in use instead of letting trucks and tractors run for hours at a time. It may also be a good idea for you to upgrade your fleets with hybrid, electric, or other fuel-efficient vehicles. Such improvements also reduce your environmental footprint, which contributes to the greater good.
Invest in Sustainability And Energy Efficiency:
Many builders think that sustainability and energy efficiency only has to do with equipment upgrades. There are, however, other ways to be more environmentally efficient and save money. You can encourage recycling by telling employees to reuse files and paperwork as much as possible. Investing in eco-friendly office supplies in another small way that you can contribute to energy efficiency and lower overhead costs. You might even consider making investments in more sustainable or energy-friendly equipment to help reduce your carbon footprint.
Strategically Negotiate Contracts:
Think long-term instead of here and now. Those contractors who cultivate relationships often wrangle supplies at discounted rates simply because of the friendships they have developed. You want to create bonds with companies that focus on volume and quality so that you can save money in the long run.
Hire Multi-Purpose Laborers:
Multi-tasking is not necessarily ideal when you are on the job. Implementing the notion when making hiring decisions, however, may be ideal. Employees who are skilled in more than one area save the company money since you don’t have to hire someone new to complete a task that a current worker can undergird. You stand to keep thousands in your company’s bank account every year by picking a team of workers capable of mapping out a building’s foundation and creating its borders.
It is not always possible to cut corners and save on material and labor when you are on site. There are, however, several ways for you to reduce overhead costs and broaden your scope of bidding.