How To Reduce Overhead Costs Of Your Construction Business

Reducing overhead costs is an important part of making your construction business profitable. Here are some things you can do to reduce your costs.

Streamline Your Fleet:

Keeping unused or under-used heavy equipment can cost you valuable money in maintenance and storage costs. Rather than keeping equipment that you don't use, consider leasing it to other construction companies, or selling it.

Rent Equipment:

Renting heavy equipment can save you costs in a number of ways. Renting can save you maintenance costs, and allows you to easily upgrade to more modern machines as they come on the market. Even if you are planning to buy your own equipment eventually, renting is a sound financial decision. It is smarter to rend something when you need it, then to maintain it all year only to use it a few times. Heavy equipment can be a huge expense, and if you purchase equipment that is not exactly right for your jobs, you can lose valuable time and money. Renting equipment before you buy allows you to try the equipment to be sure it is exactly what you need. Some excavator rental companies will service your machines and maintain them as part of the rental agreement.

Think Green:

Looking for ways to reduce waste and make less of an impact on the environment is smart not only for the planet but for your business. Small steps like using paperless billing and payroll or reducing your use of office supplies can make a big difference over time. In addition to such small changes, you may want to consider using electric or other cleaner-burning equipment to reduce diesel emissions.


Rather than keeping your own information technology specialist, payroll or accounting department, or other office personnel on staff, consider outsourcing when you can. This can save you valuable money in payroll and benefits for peripheral employees, and also ensures you get competent help in those areas.

Train Employees for Multiple Tasks:

Full-time employees are expensive when you pay salary and benefits. A wonderful way to reduce costs and reduce the number of employees you need, is to train your existing employees to perform multiple tasks at the job site. When your employees know how to do various tasks at the job site, they reduce the number of full-time employees you need. They maximize their time on site because they don't have to wait for their own specialty to be needed; they can work wherever they are needed at any time. Training employees does require an initial investment of time and money, but is worth it in the long run as you can reduce the amount of money spent on salary and benefits.

If you follow these steps, you will have a more profitable and streamlined business.