Efficiency Goals for Your Construction Projects
If you work in or own a Sacramento commercial construction company, then you know that working towards operational efficiency ensures that your company can deliver completed projects in a cost-effective way without reducing quality. However, have you ever set specific efficiency goals for your construction projects?
All ground-up projects have one operational efficiency goal: to finish up a project within budget and on time. Because the range of construction projects is wide, there are various ways to realize operational efficiency. Our team of commercial builders recommends driving the operational efficiency objectives of your construction project into smaller categories. Examples of this include customer satisfaction, labor productivity, safety, and communication. We believe that this increases the probability of success on your project. This will motivate your crew to achieve the larger operational efficiency objectives you’ve set.
To do this, you have to first analyze your operations in detail then establish a standard. You should look into:
- How long it takes project managers to obtain data from the field. Is there a time lag?
- If you had any injuries occurring on your site. If you did, what were the causes?
- How long it takes to process time cards to payroll from employee entry.
This will help you determine the areas you need to improve in and what operational efficiency objectives you will set for your commercial construction company. Here are a few operational efficiency objectives you can look into to enable you to achieve overall operational improvements.
Eliminating the communication barrier
When establishing efficiency goals for your construction projects, we recommend communication. Establishing an open line of communication between the office team and the field team will improve operational efficiency. Every day, the field team collects reports on the site that may contain important information. Having reliable communication between the two teams bridges the gap and allows easy access to the information. Our neighbors over at Gilmore Heating, Air, and Plumbing, Plumbing contractor Sacramento, explain that eliminating the communication barrier works the best for their team, who is partly in office and on the field.
To improve communication for both sides, ensure that a complete report is submitted before workers leave your site. The daily report should at the minimum include 2 photos of the Sacramento Jobsite. One at the start and one at the end of the day. This information should then be uploaded to a cloud-based management system, which allows the project manager to view it and proceed as they see fit.
Any information collected from the field, be it delays, drawing questions or site issues, allows the project manager to start documentation processes at once. This improves the time it would take to register, communicate, and sort out any issues. Having instant communication of issues or site activities allows the team to work together to resolve any issues and continue with the ground up or Sacramento tilt-up construction project without wasting time.
Encourage safe behaviors on site
If you’re in the ground-up construction industry, then you know that it’s a risky profession. Sites are dangerous and having a missing work due to an injury only slows the progress of a project. While it’s unrealistic to strive to have no injuries on-site, setting attainable goals with regard to safety is achievable. The goals you set may be PPE compliance-related or safety hazard-related.
Improvement of labor productivity
Enhancing labor productivity will bring about higher profitability on commercial building remodeling projects. When creating a proposal, the cost is usually based on the estimated labor hours required to complete the project. The lesser hours used to get the job done, the more profit subcontractors can pocket. However, if a project ends up using more hours than had been estimated, factoring in that workers still need to be paid upon project completion, a subcontractor may end up incurring losses.
To ensure this does not happen, one can track employee hours according to tasks and through different project phases. This will help discover what tasks take a longer time to finish and if there are workers who are performing at a higher level than others. Tracking productivity through a labor delivery system and integrated time allows Sacramento construction teams to meet their operational efficiency objectives.
For many strip mall construction firms, a big portion of their business encircles repeat business. Subcontracting companies that are successful and provide high-quality work enables them to work again with past customers and grow their business opportunities through referrals.
It is said that a 5% growth in customer retention can grow a company’s profitability by 75%, as its return customers will buy more over time. If you would like to know your firm’s customer satisfaction, below are 2 questions you may find informative.
- On a scale of 1-10, how likely is it that you’d recommend our firm to a colleague or friend? (quantitative view)
- Please tell us why you gave our firm that score (score mentioned above, provides a qualitative view)
In addition, you can employ an NPS (Net Promoter Score) to measure your consumer base’s loyalty. This score is based on comparing a firm’s promoters and detractors with a score between 25-33 being average. Instead of comparing your tilt-up construction company in Sacramento to other firms, tracking your NPS over time has proven to be more beneficial. Additionally, the feedback provided by your consumers helps determine the steps your firm needs to take to improve your NPS score. They will also provide insights on how to better deliver ground-up projects.
Commercial Construction Sacramento
Now, all that’s left is implementing the objectives. First, we recommend setting efficiency objectives. Then, our builders suggest tracking activities using a ground-up construction project management software. We at Headwaters Construction Inc. pride ourselves on providing high-quality construction services at an efficient and affordable rate. Contact us today for all your commercial construction needs.