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Importance Of Quality Materials For Construction

– Contributed content –

Modern skyscraper

(Free-Photos, Pixabay)

12 Nov. 2018. Construction is among the largest industries in the world, and one that contributes a massive amount to GDP. However, for entrepreneurs in the field, the reality of running a construction business can be incredibly challenging. While construction is undeniably essential, entrepreneurs find themselves hampered by one particularly problematic issue: profit margins.

The trouble with construction profit margins

The profit margins in the construction industry are notoriously low. In some years, profit margins can be below 3 percent. This is problematic enough in and of itself, but the matter is further complicated by the fact that profit margins are also unstable. Some years will be far above 3 percent, others may dip below it.

This variety is undeniably problematic for construction business owners. Profit margins dictate the overall viability of a company; while they are always subject to change, the swing that construction companies experience tends to be notably severe. This, combined with the fact profit margins are already low, is incredibly difficult to manage – and tends to lead construction entrepreneurs to the natural conclusion…

Construction businesses have to keep control of their costs

This conclusion is understandable. With profit margins so low, and so variable, cost control is vital in construction.

Inevitably, this pressing need for cost control causes construction entrepreneurs to be extremely cautious about every cent they spend. If you run a construction business, you’ll likely be familiar with this scenario – you scrutinize every price point, keep a firm eye on your margins, and do all you can to ensure expenditure is as managed as possible. This is all good practice – but it’s not without its downsides.

The temptation of low-cost materials

Materials are a huge budgetary demand for construction companies, so it naturally follows that you will want to ensure your expenditure in this area is as low as possible. The less you spend, the more controlled your costs are, and thus you are well equipped to deal with the problematic issue of profit margin – problem solved, surely?

Not quite. Unfortunately, as tempting as low costs can be on paper, in practice, they tend to be anything but beneficial. Low-cost materials cost less because they are of inferior quality, and the consequences of using low-quality materials can be substantial.

The true cost of poor quality materials

  • Poor performance
  • Higher level of breakage
  • Compromised safety of the finished work

The problems above are difficult enough, but they can also combine to cause a secondary issue: a poor business reputation. If your construction company continually produces inferior work due to low-quality materials, the impacts of this can be severe – and could lead to fewer contracts in future.

Why quality materials are the better deal

The truth is that construction businesses owners such as yourself are always better investing in materials they can rely on; from finding quality steel piping to seeking out the most durable nuts and bolts on the market, good materials are always worth the extra effort. Not only do quality materials allow a smoother building process, with less wastage, but they also prevent issues that could negatively affect your business’s reputation in future.

Final thoughts

Yes, construction business owners need to keep a firm eye on their costs – but materials are not an area that can be compromised. Instead, focus on the pace of work, seeking to do more within a normal expenditure by increasing overall productivity. These measures are far preferable to spending as little as possible on materials, and allow you to effectively manage costs without harming your business’ operations and reputation.

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