Home » Construction Business Pitfalls: The Extreme Danger from Disorganized Business Management – Infographic

Construction Business Pitfalls: The Extreme Danger from Disorganized Business Management – Infographic

by bizprac
Construction Business PitfallsFEAR

80% of companies spend a considerable amount of time chasing payments. This strains the ability of companies to do business efficiently. The common reasons for late payments are lack of communication, incorrect work, and missing invoices. These inefficiencies in the field delay project deadlines and create problems in the back office. In addition, more than one-third of contractors say that payments are often delayed because of a disagreement over quality.

Jobsite coordination

Managing time, budget, and quality on the jobsite requires strong collaboration among team members. Poor communication can result in delays and disputes, delaying payments, and hindering the ability of specialty contractors to fund new projects. Ultimately, these issues can lead to higher costs and decreased productivity. Fortunately, jobsite collaboration can be improved by adopting digital tools and training your team to use them. 

Inventory control

Good construction software for inventory management software can make tracking construction materials in your business very simple. 

A well-organized construction inventory management system will help you manage materials, labour, and equipment. This way, you can schedule projects efficiently. Incorrectly managing inventory can result in costly inventory and delays in projects. In addition, poorly managed inventory may lead to over-stocking, which will increase the overall cost and lead times of suppliers. To achieve optimal project delivery, you must know how much inventory you need to carry when to order it, and how to keep suppliers’ lead times to a minimum.

Communication

The process of communication in the construction industry requires various tools. Emails and phone calls are two standard communication methods, but they are flawed. 

Creating a communications plan is essential to ensure the project runs smoothly. It can prevent big problems later on. Ensure all stakeholders are kept informed about changes and progress. 

Create a chain of command in your company. In a chain of command, the owner and general contractor should communicate through the architect. This chain of command helps ensure that all vital information gets to the right people. If one party is not involved in the process, communication can fail. If the construction project fails, the owner will be unable to communicate with the general contractor. This will delay the project and will lead to a subpar final product.

Get the best ideas on saving your construction company from disorganized business management and how commercial construction project management software can help you as you visit Bizprac Software for Builders. Contact us and share your concerns; call/email 1800 969 970 or sales@bizprac.com.

Construction Business Pitfalls: The Extreme Danger from Disorganised Business Management - Infographic

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