First and foremost, implement a systems approach with accountability measures. All aspects of your business must be measured, with links back to financial measures so performance can be determined and process problems identified. As part of this, you must have strong site supervision to ensure delays in construction and project progress are swiftly dealt with. A project manager should be regularly on-site to take responsibility for the function and success of each project.
If you are trying to reduce costs, it isn’t enough to simply get the best rates from your suppliers. You must also have efficient ordering and scheduling of materials in place, wherein you are able to pay suppliers on time and deliver the materials to the site without delay.
Your operations pipeline must function like clock-work. Drill down to find any bottlenecks in the system, where operations are measured and performance is driven by financial accountability measures. As an example, do not wait until the time of final claim to deal with any building defects. If defects are handled sooner, closer to when they are first reported, the return of trades to make repairs is more effective than handling defects 3 months later when repair work is costly and time-consuming.
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