According to the US-based Associated Builders and Contractors – a trade association – in 2020, globally, EBIT (earnings before interest and tax) from construction activities, is on average, just 5.5% of sales. This, combined with Covid-19 constraints, have compelled contractors to be proactive in managing processes and operations that will help them increase their profitability and margins.
MECN lists ten ways of increasing efficiencies in the construction sector and optimising processes where possible.
Project managers must spend less time dealing with non-optimal activities and focus on improving the efficiency of construction projects. This can be done through understanding how decisions are made on-site and reviewing the decision-making process before a problem arises. However, the most critical aspect of maintaining an excellent workflow is to have an efficient communication system. Stakeholders and decision-makers are often not part of daily conversation; hence, project managers must find an opportunity to set regular interviews where they can answer questions and analyse the work.