Managing multiple projects is a double-edged sword. More projects equals more profit, but on the other hand, it means opening your business up to more risk. This isn’t necessarily the worst problem a contractor can face, but it does pose some important questions that contractors have to confront head-on if they want to successfully juggle multiple projects. One of the most difficult balancing acts required for contractors dealing with more than one project at a time is managing overhead. In this article, a construction lawyer in Brentwood, TN, will discuss how you can manage multiple projects while mitigating additional overhead costs.
Organize Your Workflow
Many contractors are turning to cloud-based apps and software to help them organize their workflow, but before you can do this, you’ll need to develop a strong understanding of how your workflow is lacking and what areas could benefit from increased efficiency. Investing in tools to help you manage your workflow can be extremely cost-effective, as many of these applications only charge a nominal monthly fee. By using these systems, you can boost efficiency by improving team collaboration, sharing files, automating tasks, and tracking and organizing documents. This will help reduce you back-office overhead by cutting down on mistakes and ensuring that everyone is on the same page at all times.
Find Your Golden Ratios
Managing resources across multiple projects is a complex endeavor. It’s not uncommon to find yourself asking questions like: How many workers do I need? How much equipment do my workers require to get the job done? What is the cost of sending too many workers or too much equipment to a project site?
In order to succeed, you need to figure out your “golden ratio” of work relative to workforce and equipment availability. By doing so, you can avoid unnecessary equipment rentals, bloated work costs, and overused equipment. This can also help you avoid worker burnout, which is essential for keeping your projects moving along. Working with too small of a team could end up costing you more than adding a couple workers if an injury takes place on your project site.
Once you’ve organized your workflow and figured out your golden ratios, you can better analyze cost allocation to highlight other areas for improvement. Remember, every dollar saved is a dollar earned for the parts of your construction business that need it most. One of the best ways to cut costs is by partnering with a construction attorney in Brentwood, TN, for assistance with alternative dispute resolution, OSHA defense, lien law, and more. With a dedicated attorney on your side to help you navigate the narrows of construction law, you can stop wasting money on costly claims and violations that eat away at your bottom line.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.