Apr 2022 Find Out Why Reviewing Your Past Projects Can Enhance Future Ones
You have undoubtedly experienced previous projects that did not work out the way you had anticipated. For example; Construction mistakes that had to be rebuilt, different parts of the scope that took much longer to build than was quoted, material costs increasing and clients that ended up being difficult to work with… So, when a project doesn’t go to plan and ends up costing you, (both time and money), what do you typically do?
Most landscapers tell me that they can’t wait to move on to the next job so that they can stop the frustration and start making profits on a new job. I get it, but I have been suggesting to my clients for a while now that we should review the job that didn’t go so well once the numbers are in, so we can learn and make adjustments, thus avoiding repeated mistakes. I know it’s great reviewing the good jobs, but the not so good jobs will help you make some much needed improvements.
SO WHY REVIEW A PROJECT EVERY 3 MONTHS?
Reviewing a completed project to compare quoted man-hours VS actual man-hours, can help your estimator to see which components of the scope of works had blown out, and which areas the construction crew installed on time. This helps to improve their estimating and also see which areas continually take longer. I have noticed when looking at these comparisons, some areas are typically underquoted, due to the owner/estimator thinking their crew can build at a faster rate.
Another big learning will be how material costs have increased but your quote wasn’t adjusted. If you notice this happening, then build a clause into your terms and conditions that will cover you, before starting any new projects.
EMPLOYEES HOURLY RATE
Adjusting the hourly rate for crew members in the quoting system so it is current will be an important factor. This can be a major oversight that might be costing your business a loss of profit.
This quarterly review allows you and the Foreman to review all parts of the construction process, including but not limited to; preparation, communication between the Estimator, Project Manager and Foreman, and communication between the Foremen and crew, so any kinks can be ironed out.
It will be worth looking at a couple of projects every 3 months. It may take an hour or so to review each job, but this task could save you tens of thousands of dollars over a year, making it a worthwhile exercise, I would say!