Trave - Construction Management’s Post

🚧Things are not going well with the construction industry, and companies are losing money on labour and overheads!🚧 Read the full blog here👉 https://lnkd.in/eeeJncbV ⏰Attention project managers in construction—it’s time to wake up! Without accurate cost budgeting, your company could be overspending or under-spending on crucial labour resources. 🎯Here’s the The Challenge: Traditional methods are unreliable for obtaining budget specific labour hours expenses, and productivity. ✅What’s the solution? Invest in a construction site and workforce management tool like SwiftCheckIn-EzyBuild that will help you: 🥇Overcome challenges of traditional methods  💰Budget effectively and schedule projects realistically  💵Minimize financial risks and improve efficiency Why does it matter? Labour costs can be 30-50% of project expenses! Take a look at some of the factors that usually affect labour costs. Key Factors Affecting Labour Costs 💲Wages (based on trade, region, union status, etc.) 👷Labour productivity (hiring the right people matters!) ✅Benefits (health insurance, retirement, etc.) 💲Here’s how you can estimate labour costs💲 1. Break down project tasks  2. Identify trades needed for each task  3. Determine workers and hours per trade  4. Research regional pay rates  5. Multiply pay rates by hours for cost per task  6. Add regional overhead rates  7. Use software to adjust for productivity 8. Validate estimate with historical data 🔎Here’s how you can improve your estimation accuracy 🔍 -Track actual costs and analyze variances -Account for absenteeism and turnover with a contingency fund -Get multiple subcontractor bids -Regularly update estimates 🎯This is where SwiftCheckIn-EzyBuild comes in🎯 🤖EzyBuild automates tasks and simplifies data entry 🧑💻QR code check-in/out for timekeeping ⌛labour time tracking and budget management 💲Real-time cost control and data integration 🤖Predictive analytics for 95% accurate estimates Want to know more? Visit our website or contact us for more details 👉https://lnkd.in/gW7Umq8Q #projectmanagement #constructionsafety #Construction #Safety #Innovation #constructionaustralia #constructionnewzealand #constructionindustry #suspiciousactivityalert #onsitealerts #labourcosts #constructionoverheads #reducecost #reduceoverheads #constructionmanagement #riskmanagement #costcontrol #constructionchallenges

Navigating High Interest Rates in Construction: How Lower Labour Costs Can Help Sustain Projects In today’s high-interest environment, construction companies are under pressure to keep projects viable. With UK interest rates high for some loans, costs are higher than ever, especially for small and medium-sized enterprises (SMEs) that face cash flow and viability challenges. While interest rates are beyond a company’s control, labour costs—a major project expense—offer opportunities for savings. Here’s how reducing labour costs can make a big difference: 1. Improved Cash Flow High interest rates strain cash flow due to increased debt servicing. Reducing labour expenses frees up capital, allowing companies to prioritise debt repayment and maintain operational continuity. 2. Enhanced Project Viability Cost control is key to project success in a high-rate market. Lower labour costs help projects stay within budget, preventing delays or re-scoping. 3. Competitive Bidding Advantage Increased project expenses make competitive bidding tough. By reducing labour costs, companies can submit leaner bids without sacrificing quality, sustaining business even with tighter profit margins. 4. Future-Readiness and Financial Stability Effective labour cost management contributes to long-term stability. Firms that adapt quickly are better positioned to handle high-interest rates and future projects without financial strain. Innovative Platforms to Save on Labour Costs Solutions like PLUGG help construction companies cut labour expenses by streamlining hiring, maintaining transparent pricing, and reducing agency fees. Traditional agencies often charge 20-30% in fees, but PLUGG helps companies save up to 75% in comparison, empowering companies to secure the best candidates and keep labour costs within budget. In today’s economic landscape, construction firms need every advantage. By optimizing labour costs and adopting more efficient staffing solutions, companies can thrive in challenging times. #Construction #InterestRates #CostManagement #ProjectManagement #ConstructionInnovation #PLUGG #FinancialStability #LaborCosts

Improving investors’ confidence key to wellbeing of industry next year, Gleeds survey says: Latest report also suggests ISG collapse could be catalyst for change on margins and procurement strategies #construction #news

As the gig economy grows, so do misconceptions about contractor management. With 72.1 million Americans—nearly 45% of the workforce—now earning as independent contractors, understanding contractor management is critical. Yet, many myths still surround this practice. Let's debunk the top 5 myths to help you manage contractors more effectively: 🔍 Myth #1: Contractors are just like regular employees This is a costly misconception. Unlike employees, contractors manage their own taxes, work independently, and typically don't receive benefits. Misclassifying them can lead to severe penalties. For example, a Suffolk construction staffing agency had to pay $278,073 after misclassifying 208 workers. 🏢 Myth #2: Only large companies should engage contractors Not true! Whether it's a small business or a large corporation, contractor management offers major advantages, benefiting companies of all sizes: ✔️ Cost Savings: Employers save an average of $4,700 per hire by using contractors. ✔️ Flexibility & Speed: Contractors can start right away and make an immediate impact. ✔️ Minimal Training: Contract workers are experts who need little guidance. ⚖️ Myth #3: Contracting out work means losing control Think again! With detailed contracts, regular check-ins, performance monitoring, and clear escalation procedures, businesses can maintain strong oversight and control. 📋 Myth #4: Contractor management is mostly about compliance Effective contractor management goes beyond compliance. It involves selecting the right contractors, negotiating favorable terms, and continuously monitoring performance. Building strong partnerships and addressing potential risks early can make all the difference. ⏳ Myth #5: Managing contractors is too complex and time-consuming It doesn't have to be. With the right tools, like the Appruv contractor management platform, companies can streamline processes, ensure compliance, and save time. Simplifying contractor management is easier than it seems! How do you currently handle contractor management, and what challenges are you facing? Share in the comments! ⬇️ #ContractorManagement #GigEconomy #WorkforceManagement #ContractorCompliance

Our latest Australian #MarketView report has just been released. The report highlights that while the Australian construction industry has encountered significant challenges for the past few years, the sector is beginning to embark on the path to recovery, with a robust pipeline of work poised to enter the market by mid-2025. This progress also foreshadows growing challenges, notably in skills and labour shortages. Click the link to know more: https://okt.to/CPyqXH #ConstructionIndustry #MarketTrends #LabourShortages

📰 Understand the impact on facilities costs on your indirect rates in our latest #govcon article! Learn how Aprio's Government Contracting Services Team can help you plan for more precise budgeting and pricing.

📰 Understand the impact on facilities costs on your indirect rates in our latest #govcon article! Learn how Aprio's Government Contracting Services Team can help you plan for more precise budgeting and pricing.

The latest figures from the Office for National Statistics (ONS) reveal that the construction sector outperformed the wider economy in November. While the broader economic growth nudged up by just 0.1%, construction output rose by a remarkable 0.4%. This growth spurt was spearheaded by private commercial new work, which saw an impressive rise of 3.1%, and non-housing repair and maintenance jobs, which increased by 1.1%. ONS data also indicated that new work contributed to a 0.2% rise in construction output over the last three months - a period where overall economic growth remained flat. However, while the uptick in commercial projects, driven by a resurgence in demand for office space, is heartening, it isn't all smooth sailing. As Gareth Belsham from Bloom Building Consultancy highlighted, private sector housebuilding fell by 1.2% in November, reflecting ongoing challenges in new home construction due to high interest rates impacting land-buying costs. The announcement comes hot on the heels of news that inflation fell for the first time in three months last December. Richard Cook from Pegasus Group described the boost in construction as a positive bellwether for the UK economy, though he cautioned that skills shortages could still hamper the sector's progress. Looking forward, Scott Motley from Aecom points out that while recent data showcases a rebound post-Budget, financial market volatility and government borrowing costs could dampen growth prospects for 2025. It's a stark reminder of the need for collaboration between the public and private sectors to foster confidence and drive investment. Anyone else curious about how these trends will shape the job market and project opportunities in construction for 2025? Let's keep the conversation going! #ConstructionGrowth #UKEconomy #CommercialProjects

£3.4bn only scratches the surface on the volume spent on consulting by the UK government. It isn't all waste, but a significant amount of that could be better spent. This very large number only covers the money spent on consultants themselves, not the infrastructure, licence costs and support for the vastly over specified solutions recommended by those consultancies or the cost of the civil servants embedded within these programmes, the cost of running buildings filled with £3.4bn of consultants, the extra civil service laptops, travel expenses and more. The overall number is much, much larger. With consultants working both client slide and delivery side for the same government departments, marking their own homework to an under resourced civil service, this is a huge Pandora's box which is starting to burst. There is another way and it starts with upskilling the civil service, changing the procurement model so that consultancies are a last resort, not first and empowering the civil service to deliver what is genuinely needed, not what can be built within the fiscal year. At Forwd, we can work to identify whether what a government department is doing meets the goals of that department and then upskill civil servants and essential contractors to meet that goal more specifically than any consultancy. We run a commercial model designed to avoid any risk of land and expand, which is so prevalent across the public sector, enabling us to focus on saving the country as much as possible. Reach out to find out more. www.forwd.co.uk talktous@forwd.co.uk #publicsector #civilservice #consulting https://lnkd.in/e5Jmw4Gm

📰 Understand the impact on facilities costs on your indirect rates in our latest #govcon article! Learn how Aprio's Government Contracting Services Team can help you plan for more precise budgeting and pricing.