From nailing down labor estimates to handling change orders and making sure materials arrive on time, every decision can make or break your project.
Let’s explore three key strategies that keep your projects on track and your risks in check.
Nail Your Labor Estimates
Labor is your biggest variable—and your biggest risk. Get it wrong, and you’re facing blown budgets and missed deadlines. Accurate labor estimates aren’t just a nice-to-have; they’re the bedrock of a successful project.
Don’t just track hours—track who’s working them.
Blended labor costs are often overlooked but play a crucial role in keeping your project’s finances healthy. Many contractors only track hours, but the real insight lies in who is working those hours.
If you’ve got a crew of high-cost, skilled workers doing tasks that don’t require their level of expertise, you’re burning through your budget fast. Managing your blended labor rates—finding the right balance of high and low-cost labor—is key to staying within budget without sacrificing quality.
Control Change Orders
Change orders are inevitable, but they don’t have to throw your project off course. The key? Early approval. Delaying change orders costs you leverage and throws your schedule into chaos.
The earlier the change order, the better your leverage.
Get those change orders in early and keep them top of mind in your project plan. The sooner you address them, the smoother your project will run.
Stay Ahead with Material Procurement
Materials are the lifeblood of your project. Miss a delivery window, and everything grinds to a halt. That’s why proactive procurement is a game-changer.
On-time materials mean on-time projects.
For example, if you’re waiting on a critical shipment of HVAC units, even a small delay can push back installation, mess up your timeline, and lead to further setbacks. Keeping a close eye on lead times and order deadlines ensures your materials arrive when you need them—not a day later.
Takeaway
Project management in construction isn’t just about reacting to problems—it’s about staying ahead of them. By focusing on accurate labor estimates, early change orders, and proactive material procurement, you set your projects up for success. Master these strategies, and you’ll mitigate risks while achieving smoother, more predictable project outcomes.
