Missing a deadline in the construction sector can prove costly, notes leading sheet pile supplier Meever Konnection. It could have you staring at expensive fines and penalties or have you spending a fortune to fight lawsuits.
To avoid such eventualities, you’re better off taking every precaution to eliminate every unnecessary delay. With the right safety measures and equipment, you can head off many of these delays and complement your projects on time.
Otherwise, consistent delays might cause you to lose your edge on the market, which might take you on a downward spiral. It’s not just about keeping profits steady or increasing, efficiency significantly affects your spending — both on overhead costs and on fixing damages or expensive mistakes.
Thinning profit margins
Construction is a cash-intensive venture, and to this end, clients would be happy to take a fine-tooth comb through your finances during the vetting process. They want to be sure that they are dealing with a company of sound financial standing.
It is no surprise as any careful businessperson would do the same. Put yourself in their shoes. It would be unwise to partner with a company in the red and risk, not just quality of work, but timeliness and budget as well.
Too many delays in project completion can result in sliming profit margins or losses. Your overheads are likely to balloon as you end up staying longer than planned on the site. Think about it; you spend daily on workers’ salaries, security and equipment rentals if you hired machinery.
And when you pay out more in salaries, equipment, insurance, bonds, and sureties, too many of these unplanned expenditures can eat into your profits to the point of leaving your books in the red. Keep your construction project running smoothly and efficiently to keep unexpected expenditures at a minimum.
Exposure to vagaries of weather
Weather is a significant factor in the construction sectors, especially in countries with extreme weather patterns. A slight delay in project completion can leave you staring a huge loss. If winter sets in before a project are complete, you’d have to abandon the construction process and wait out the bad weather.
Unfortunately, the inclement winter weather will take a toll on the half-finished building putting its structural integrity in question. You’d have to carry out massive repairs to restore it to its previous state and carry on with the building process. Make sure you schedule your project in accordance with optimal weather conditions to avoid manages and delays, and therefore unnecessary spending.
Delays in the cash-intensive construction sector can leave your firm nursing heavy losses, not just in the short term. Delayed deliveries don’t only lead to more costs, but it could also mean losing loyal customers, which is a big hit in the long term.
Therefore, you need to take every precaution to eliminate any delays that could prolong your delivery dates. A business that is inefficient will lose more than they gain because of having to pay for extra charges in damage control and unplanned delays.