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8 Tips To Save New Contractors Big Bucks In The First Year

  1. Work With Engineers And Planners During The Development Process

As this is your business, you must be hands-on with all your projects. That is why you should be working with the engineers and planners during this initial planning process. Doing this enables you to save money, because if you don’t plan properly, it usually leads to further costs and delays. However, if you work with them and do follow every detail, you’re able to get a firm lock on your budget, which is essential.

  1. Purchase Your Own Materials

Most subcontractors purchase their own materials for projects. Yet, it’s a lot cheaper to purchase your own, in the long run. That’s because you’ll often find materials that are just as good, though significantly cheaper. Additionally, should the subcontractor in question walk off the job, they will probably take those materials, even if they are legally yours. Having said that, purchasing your own materials isn’t advisable if you really don’t know what items you should be purchasing. In the end, if there’s any doubt, just let the subcontractors do this stage of the work.

  1. Bid On Jobs You Are More Likely To Win

Meet with clients before you bid, and talk to them. Get a feel for what they’re looking for and really want. Then, make a bid. It doesn’t have to be a low bid, because you should bid for what you’re worth. However, make sure to get to know the client and figure out what they need from you.

  1. Treat Your Subcontractors Well

Studies have shown that happy employees lead to a successful, thriving business. This is very, very important. Try to avoid overtime by scheduling the hours well and planning things out very carefully. And, on top of that, buy your subcontractors lunch and tell them when they’re doing a good job.

  1. Schedule Things With Enormous Precision

This goes hand-in-hand with working with the planners and engineers. Develop a thorough plan for both business and projects. Maintain a meticulous schedule so your employees won’t have to work overtime. Down the line, you’ll also save money by not having to deal with unexpected changes in the schedule.

  1. Rent Inexpensive Pickup Trucks

One of the easiest, most cost effective ways is to rent. You can save money by renting pickup trucks. As such, you can use them to take subcontractors to worksites and transport materials. When the project is done, you give the trucks back. No more wasting money on equipment that may not be used daily or even during an entire project.

  1. Make Sure Everyone Is Taking Care Of Their Tools

Tools are expensive, as I’m sure you already know, so taking care of them will save you money. If you oblige all employees to take the time to clean, maintain and store their tools properly, then you will save lots of money over time. And, of course, you won’t have to purchase as many new tools.

  1. Don’t Waste As Much Good Material

Statistics show that about twelve-percent of all construction materials are wasted during a project. This can be solved by doing thorough measurements and planning. As well, you can reduce waste by making sure that the materials are stored properly. If you do need to dispose of materials, make use of recovery debris programs, which will save you lots of money on disposal fees.

Besides saving money during your first year, you should also make sure your business has everything else in place, like, insurance, LLC, licenses, etc.