Clients generally have budget caps they are hoping to stay within. There are also clients who may have limited resources. So how can you, as a general contractor, ensure your client is getting the biggest bang for their buck?
You need to have a good understanding of resource planning.
Resource planning and allocation
A resource is an asset that a contractor will use to complete a construction project. There are several types of resources that you will have to utilize effectively. Several examples of these would be building materials, equipment, machine, and labor.
Therefore, resource planning is when a contractor identifies and allocates different assets to ensure that a project is completed on time.
If it is a cheap project, your resource allocation strategy must be effective. Otherwise, you will expend more resources than is available before the project is completed. To effectively allocate the resources given, you must understand the project’s scope.
At the same time, you must also have a good comprehension of task dependencies.
Task dependencies are construction events that go hand in hand. A good example would be if you are building a foundation. Before you form the foundation, you must, first of all, clear the site.
Because you have a limited budget, it is in your best interest to ensure that your resources are well utilized. The best way to do this is to invest in the right technology.
Solutions such as AliceTechnologies make it easy for contractors to avoid construction delays and manage resources.
Apart from equipment and machinery, labor is probably the most essential resource in a construction project. Without labor, everything comes to a standstill. Therefore, if you are working on a cheap project, you need to skillfully distribute tasks to your workers.
Unskilled labor can cause construction delays and expensive repairs that jeopardize your contract. Delay can be caused by several factors, one of them being that unskilled labor is less productive.
In addition, if you hire an unskilled project manager, they may not properly supervise subcontractors, resulting in communication problems. A project manager with poor record-keeping skills can misplace important files resulting in litigation.
Furthermore, a project manager lacking project administration skills such as risk management is a liability to a construction company because they do not add value.
When working on a cheap project, a simple mistake can be very costly. Therefore, you have to invest in team management. The team you hire should have technical skills and be motivated to contribute to the project’s success.
In addition, you must create an environment that allows team members to openly share their ideas. When managing your team, you need to identify and address unproductive employees efficiently.
Corrective measures should be immediately instigated if an employee is underperforming. This may mean replacing them with more productive workers. On the other hand, hard-working employees should be rewarded for their efforts.
Delivering a cheap project
The first step to delivering a cheap project is to identify the situation and the consequential impact of the kind of resources you have. This way, it will become easy for you to create a strategic resource allocation plan.
The plan is crucial because it will enable the project manager to gauge whether the program is going according to schedule. Moreover, the plan will also help the manager to allocate resources effectively. Other strategies you can use to increase delivery of a cheap project are:
Using an AI-based scheduling platform
Because it is a cheap project, you do not have a lot of buffer room when it comes to finding and fixing mistakes. Therefore, you need to use an AI-powered construction optioneering platform to reduce risk.
Remember, you do not have the luxury of redesigning an entire floor because there are limited funds. An AI construction and optioneering platform will create several simulations until it has the right planning strategy to ensure your project is successful.
Identifying and documenting resources
If you are working on a tight budget, the first thing you need to do is to identify and document your resources. You need to know how many personnel you will have at your disposal and the number of equipment and materials available.
Once you know this, you should be able to identify skills gaps and whether the resources you have are enough to complete the project.
Keeping an eye out for resource overallocation
Over allocation is when a particular resource such as labor is assigned more than one project to complete. When this happens, the team member suffers from fatigue because they have been overworked.
When you have stretched resources, and over-allocation is inevitable, you must let your team know in advance. This will prepare them psychologically and enable them to be more productive.
Time tracking your resources
For cheap projects, you will have to track your resources. The first you need to track is your workforce. You need to use modern technology to know what time they are going to work, their productivity levels, and what time they are going home.
The technology you use should also be able to assign tasks and use algorithms to determine their completion rate.
Another resource you need to track is what your contractors do to ensure that they do not go over budget. Similarly, you need to ensure that priority tasks are completed in time because they can cause delays.
Lastly, regularly evaluate your resource allocation plan to ensure you are still within budget. Have resource planning meetings as often as possible and let contractors debate how effective the strategy is.