Excavation crews are the first line of assault when a new construction project is started. They move into an area and prepare it for the ground crew to start building things up. They are the ones who tear everything down and dig stuff up beforehand. Managing costs as the leader of an excavation crew can be a challenge, but it is possible.
Cost-Effective Management
Keeping your projects on time and on a budget really comes down to one thing: Management techniques. If you are willing to upgrade your manager skillset a little, the accountants will love you forever. The best techniques are not always intuitive, but they will save you money.
The best managers keep their projects on schedule and under budget. Below listed are a few ways in which you can start working towards that.
Don’t Purchase Equipment: Try a Dry Hire
Some equipment is not used often enough to justify a purchase, but all the same, the equipment is essential for the job. When you find yourself in such circumstances, consider renting the equipment or hiring an excavator dry hire instead. This is often a lot less expensive, and unless you are going to use the equipment daily, it does not make sense to spend the amount it would cost to buy the equipment outright.
Create A Budget Beforehand
Anytime you get a new project before you even consider starting it, you need a solid estimate worked up beforehand. This serves you and the customer. It provides you with an idea of the material you will need, the manhoods, and, ultimately, the overall cost. The customer gets to see what is coming out of there pocket as well.
Reviews Progress Continually
As a manager, it’s your job to stay on top of everything. The second you let up is the second things start to fall behind schedule. If you do not closely monitor the progress, then expenses do not take long to start piling up behind you.
Get Multiple Quotes
When you are looking at contractors to do various jobs for you on the job site, you must never settle for the first quote you receive. You will always be able to find a better offer by shopping around. A lot of times, the initial offer maker will lower their offer proactively for you.
Shop With Multiple Vendors
Any material that is regularly used in your line of work should be purchased on contract, or you need to negotiate with more than one vendor. Contracts should only be accepted for items that are sold to you at well below the market rate. Looking for lower prices increases the chances you’ll find them.
Look For Potential Partnerships
Any interest you find from other companies in partnerships should be explored thoroughly. You never know what beneficial economic effects might occur. Often it will be a net boost for both parties.
The Bottom Line on Excavation Cost Management
Being an effective manager requires that you stay involved. Do not get over-involved though then you can delay progress too. It’s one fine line to balance, but one that is easier to walk with experience.
Do not be afraid to look to people in the industry that are more experienced than you are for guidance. They would most likely appreciate the obvious sign of respect you have for them and be glad to help. Learning is happening every moment you are open to it, and the best managers never stop.