Finance plays a vital role in the functioning of any business. Managers have to keep a constant check on the flow of money in the business because only then can you have a clear idea about how much money you have in your hand and how to spend it optimally.
When we talk specifically about a construction company or site, it is important to understand that its functioning is a bit different from the rest of the fields. Mainly because people management is different and the tasks involved are also varied.
To be precise, it involves more physical activity and needs a number of physically fit manpower than individuals who are intelligent.
Here’s how a construction site manager can find ways to stick to a budget.
You must begin the budget process by bringing together your entire team. You alone cannot frame a budget plan because you need valuable insights and no one else but your team can offer you that.
Your team mainly depends on the size and structure of the company. Your team may or may not include the business owner, committee members and other such people. But, it is necessary that the members have a basic level of understanding with each other.
Besides, all the members should have adequate knowledge about the company’s cost structure and accounting system. This will help you to frame an authentic budget plan.
Construction finance can be secured to help with your operational expenses and provide your construction business with some much needed stability. If the manager fails to keep track of all the expenses then the project might dig a big hole in the owner’s pocket. Therefore, it is essential for managers to carry out in depth research and determine goals of a specific project.
Once you have discovered project goals then you need to search for a specific path to attain those goals. For this task, you will have to inspect the site and other essential documents to ensure that you follow all the legal norms.
Evaluate all resources available to you and also any limitations so that you can work within the required framework.
Step-2: Design a plan
At this stage, you need to find out the potential scope of your project. In order to check this, you need to get in touch with architects and design experts and get their expert opinion.
Once you have outlined a path for the project you can ask consultants to provide you with some creative options along with a 3D model or drawing. All your investors and decision makers should agree to the final design work before you implement it.
Hiring experienced personnel to look into project details will help you to minimise errors.
Once you have finalised the design, the next step is to seek budget approval for that design. As a manager it is your responsibility to convince your owner and stakeholders about the merits of the project.
You can present them with estimated figures and the potential effect of the plan. This will give them a better understanding about the project and it will be easier for you to get the go ahead for the project.
Before you present the idea make sure that you assess the project and look for any potential issues. If you find any, discuss them with your teammates and try to resolve it.
This will minimise your chances of rejection, help you to keep your project on budget and move ahead as per the set timeline.
Step-4: Construction and closure
If you thought that designing and seeking approval was tedious then you are in for a small surprise. The process of implementing the plan and closing the contract is an equally lengthy process.
Managers have to constantly monitor the progress of the project and ensure that it moves as per schedule within the estimated costs.
Even some of the best laid plans have come unstuck by hurdles, so always be prepared to face certain complications along the way. Maintain a log book or record diary to note any changes and alter your plan accordingly. This will also help you to determine future prospects and help you make changes in your plan well in advance.
Keep your stakeholders and owners updated about all the necessary details from contractors to utilities. Track quantity and prices of raw materials being used and deliverables during the process. This will ensure that you make timely payments to your contractors and they receive fair due for their work.
You can prepare a checklist of tasks that need to be completed and update it as per the work done on a particular day. This will help you to adjust the work as required so that you can meet all your project deadlines.