Unfortunately, due to either a lack of experience or an accidental oversight, many general contractors make mistakes that are easy to avoid with proper planning and a commitment to excellence. Whether it’s ignoring safety measures or inaccurate project estimations, you won’t have to worry about rookie mistakes from Neo Construction Partners in Phoenix. That said, you should always be aware of the most common mistakes made by commercial contractors so that you can make the best decisions regarding your project cost estimates.
Sloppy Accounting Practices and Poor Budgeting
To avoid the cost of projects skyrocketing out of control, commercial contractors need to be actively tracking their finances in real-time. For many contractors, this simply doesn’t happen. All too often, expenditures take too long to get reported and are subsequently not properly accounted for, reducing a contractor’s ability to meet financial goals. To remedy this, competent commercial contractors will utilize accounting software, allowing for automation and the minimizing of human error.
Similarly, sticking to a planned budget is imperative for commercial contractors. There is software available that helps contractors more accurately estimate the costs associated with materials, labor, and supplier fees. Using specialized software to help account for these things helps reduce underestimating the cost of a project by recording data down to the minutiae of pertinent details, like costs per square foot of materials and labor costs per hour.
Relying on Unprofessional Workers
Like any occupation, professionals are required to get projects completed correctly and on time. Professionalism in today’s modern construction world includes using the latest technology and methods to provide accurate estimates. Contractors who don’t use or under-utilize modern professionals to get the job done are doing a disservice to their clients by increasing costs and lowering productivity.
Disregarding Worksite Safety
Whether you’re working in an office or a theme park, workplace safety is always of critical importance. Injuries and accidents are common in the construction field, which is all the more reason that trustworthy contractors embrace and adhere to safety standards across the board. Contractors who ignore safety protocols have to bear the additional costs associated with disruptions to projects due to negligence. A slip and fall while on the ground floor may result in a bruise, but the same such accident occurring 30 feet in the air can result in serious injury or even death. Because of this, all commercial contractors need to make the safety of their employees and clients of utmost concern.
Dirty, neglected equipment is not a sign of mileage — it’s a sign of negligence and unprofessionalism. Whether contractors own or rent their equipment, proactive and preventative maintenance needs to be employed to reduce costs over time. Without proper routine and preventative maintenance, the equipment being used on a project can either fail or underperform, leading to higher costs and missed deadlines. If a contractor can’t look after their own equipment, you can’t reasonably expect them to sufficiently care for your project!
Poor Management Skills
Many contractors depend too heavily on too few individuals to properly manage the workflow of projects. It’s essential that the proper management channels are in place to ensure the quality of work being done — without it, results can be inconsistent and can cause lower customer satisfaction. There needs to be a management framework that extends from top to bottom — it’s too much for one person to shoulder alone.
Insufficient Subcontractor Management
In many cases, it’s necessary to use subcontractors to handle certain aspects of a construction project. Some contractors make the mistake of simply hiring the cheapest option available, commonly resulting in a lower quality solution. As the manager of a project, it’s vital that contractors thoroughly screen subcontractors. This can be accomplished by checking the quality of their previous work, reading reviews of their work by previous clients, and reviewing the subcontractor’s standards for customer service.
Lack of Communication with Customers
Communication with the customer is absolutely essential to achieving a professional, high-quality result on a construction project. When contractors fail to listen to the specific and unique needs of their customers, it’s all too easy to deliver an unsatisfactory finished product to an unhappy client. Even if you have incredible skills as a contractor, you need to take the time to be available to and communicate with your clients regularly.