Make money by saving money. It’s that simple; cost reduction measures result in a bottom line increase in profit. Just as performing more work with the same overhead can result in more profit, so can cost reduction measures. The difference is that producing more work does not guarantee a profit; in fact it can result in a loss, whereas reducing cost is guaranteed profit. It is amazing how many contractors chase more work seeking more profit with inadequate systems and controls in place while all they need to do is refine their systems and controls at the present work volume to attain the profit-level sought, and at less risk.
One key to making money is learning how to conserve it, and a way you can conserve it is through greater efficiency and a watchful eye on cost. Your construction personnel need to be good at scheduling, coordinating and executing in the most efficient manner, but can you really expect them to perform at their best without giving them the tools to do so?
The cost information that your company generates can educate, enlighten and therefore improve the decision-making of your key personnel. The application of Job Cost Control, Equipment Cost Control, Purchase Order Systems and Work in Progress Procedures are the route to conserving costs in a construction company. Fully implementing the use of these important tools empowers your company to be as efficient as can be.
Our Cost Reduction Audits assess the areas in your company where a savings can be made. We assess the present state of your company and make recommendations and provide valuable insight on important areas of improvement. That is, we recommend specific systems and procedures that, if in place, would generate a substantially greater return in the long run and reduce risk along the way.
We don’t stop there. We know what makes a construction company “tick” and how to implement detailed systems and procedures that will work. Call us today for our audit of your company and we will not only identify the potential cost-saving areas, but show you how to turn the ideas into real profits.