3 Pitfalls Your Construction Company Needs To Avoid

Hint: Don’t hire Homer Simpson!  (image)

If you own a construction company, you want to do all you can to ensure success. Any mistakes you make can be costly, to both your bank balance and your reputation. In this article, we will list three of the reasons why construction companies risk failure and will offer a few tips to help you avoid the pitfalls that may occur.

  1. Not staying within budget

When taking on any project, you need to calculate the funds needed for a project. Not only do you need building materials, but you also need to remember such things as insurance costs and hiring labour. Then there are the unexpected costs, accounting for natural disasters, and hidden issues within a building that may need to be dealt with before work begins.

Tip: Make a checklist of everything you need before a project, and calculate your costs. You overlook anything at your peril, as you don’t want to let your client or contractor down. Double and triple check any estimates, and let your client know if any changes have to be made. Not only are you working with your own funds, but you also have to fall in line with the client’s budget too, so make open communication a priority so you both know the costs involved. There will be a delay if the client runs out of money, and you will lose face if you have to ask for more money than would normally be expected.

  1. Using outdated or faulty equipment

You can’t complete a job without the requisite tools and machinery needed. You are responsible for both the safety of your employees and the building you are working on. If any employee is injured during the project, or the building doesn’t meet health and safety regulations because of your equipment, you may face legal action.A construction defect lawyer in Colorado can be used against you if their client finds probable cause that your company is responsible for a fault that resulted from using outdated tools. Similarly, a workplace injury lawyer would be used if an employee is injured. These can cost the company far more than the price of good-quality tools.

Tip: A workman is only good as his tools, or so the saying goes, so replace older equipment with something new, safer, and more reliable. Go to a reputable source, as while you may be able to buy equipment cheaply, how reliable will it be? Whether you use a local supplier or use international websites such as Hyresmaskiner.com, only buy the tools and protective equipment that is accredited and known for their safety. Keep an eye on industry magazines and journals too, as sourcing reviews of particular pieces of equipment will help you make a viable purchase.

  1. Hiring unreliable workers

You can’t complete the project by yourself, so you will need to hire a decent workforce or subcontract it to another firm to get the work done. Hire the wrong people at your peril. Underqualified staff will perform shoddy work, and disreputable firms will tarnish your good reputation.

Tip: While it may be cost-effective to hire cheap labour, you want to spare no expense when it comes to  finding the best people for the job. Vet the workers you hire, and take up references from the people they have worked with in the past. When subcontracting to other firms, only use those who have a good reputation. Talking to other people within the industry will give you a good idea on which firms are trustworthy, and which ones you should avoid like the proverbial plague.


To stand above the competition and win those valuable contracts, you do need to heed the advice above. Avoid those pitfalls, and you stand a greater chance of success.

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