construction survival strategies

The construction industry, especially residential construction, is one of the sectors hardest hit by the COVID-19 pandemic.

These construction survival strategies can help keep your company afloat during tough times.

Be strict about invoicing

Make sure you invoice your clients timeously and that they pay promptly.

In the past, you might have given clients leeway.

This is not a kindness construction companies can afford now.

Your suppliers will no doubt do the same to you.

Build a good reputation

Go the extra mile with the work you have so that clients speak positively about you.

This is especially effective on social media.

Get more involved with clients online.

When the industry starts to pick up, you’ll have an advantage.

People looking for a construction company will think of your name first.

Look for gaps in the market

Find ways to adapt your construction services.

Tough times create new and unforeseen opportunities.

Think what needs doing now.

Shops and offices may need layouts reconfiguring to comply with social distancing regulations.

Your company can step into this role.

Cut overheads

Look at your overheads to see where expenditure can be cut.

Kitchens, for example, are a potential hotspot for infection during the pandemic.

Close your kitchen and ask staff to bring tea and coffee in a thermos.

The company will save the cost of coffee, tea, sugar and milk.

You’ll also save electricity because the kettle or urn won’t be used and the fridge can be unplugged.

Keep your team informed

Explain your decisions to your team.

They need to know that costs must be cut and everyone has to make sacrifices.

If you’re cutting bonuses, incentives and pay rises, tell the team.

They’ll be more understanding and accepting if they know upfront.

Stick to your strengths

Stick to the jobs you’re best at.

It may be tempting to take on unfamiliar tasks but this can have disastrous consequences if you’re unable to complete the job well.

Turn down a job rather than earn a bad reputation.

Negotiate with suppliers

Your suppliers will also be tightening their belts.

Even so, ask for a little slack.

Apply for an account with regular suppliers and negotiate longer payment terms.

If necessary, consider new suppliers.

If you find what you need is better value elsewhere, consider moving.

Look at rebuilt or pre-owned equipment

Even now you may need to invest in machinery and equipment.

If new equipment and machinery is needed to complete a job, choose reconditioned machines.

This construction survival strategy may be the only way to move forward during tough times.

How KH Plant can help

At KH Plant, we specialise in restoring Caterpillar 140G, 140H and 140K motor graders and components to as-new condition.

So you can get the benefits of a new motor grader at a fraction of the cost of a new machine.

Contact us for more information or to discuss your needs.

Do you need expert assistance?

Call us now on +27 83 274 4882 or email us.

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