Construction Advice Archives | Buildxact AU https://www.buildxact.com/au/tag/construction-advice/ Estimating & Job Management Software Fri, 20 Jan 2023 19:39:18 +0000 en-AU hourly 1 https://wordpress.org/?v=6.1.1 https://www.buildxact.com/au/wp-content/uploads/sites/10/2022/01/fav.png Construction Advice Archives | Buildxact AU https://www.buildxact.com/au/tag/construction-advice/ 32 32 How branding grows your business https://www.buildxact.com/au/uncategorized/branding-ebook-fb/ https://www.buildxact.com/au/uncategorized/branding-ebook-fb/#respond Tue, 03 Jan 2023 23:24:26 +0000 https://www.buildxact.com/au/?p=11608 Learn how to build your business by creating quality branding.

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How branding grows your business

Having the right branding is critical to standing out amongst the competition, helping you and your business achieve long-term success.

We’ve complied strategies and tips that will help you develop the right branding for your business, providing you with insight on what makes a good brand and what wins you more work.

You’ll learn:

  • The important elements of a strong brand
  • How effective branding grows your bottom line
  • The core elements of brand messaging
  • Where to start growing your brand 

Related content

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How branding grows your business https://www.buildxact.com/au/ebook/branding-grows-business/ https://www.buildxact.com/au/ebook/branding-grows-business/#respond Tue, 03 Jan 2023 23:10:44 +0000 https://www.buildxact.com/au/?p=11595 Learn how to build your business by creating quality branding.

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How branding grows your business

Having the right branding is critical to standing out amongst the competition, helping you and your business achieve long-term success.

We’ve complied strategies and tips that will help you develop the right branding for your business, providing you with insight on what makes a good brand and what wins you more work.

You’ll learn:

  • The important elements of a strong brand
  • How effective branding grows your bottom line
  • The core elements of brand messaging
  • Where to start growing your brand 

Related content

Let's show you
how it works

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What is lean construction? https://www.buildxact.com/au/uncategorized/lean-construction-ebook-fb/ https://www.buildxact.com/au/uncategorized/lean-construction-ebook-fb/#respond Wed, 21 Dec 2022 06:01:10 +0000 https://www.buildxact.com/au/?p=11475 Avoid wastage and save your business money by learning the ins and outs of lean construction.

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What is lean construction?

The state of the construction industry has drastically changed, forcing builders to reconsider how their projects can be managed.

Get to understand lean construction in this helpful guide, providing you with strategies to better control your projects, avoid wastage and save your business money.

You’ll learn:

  • The ins and outs of lean construction
  • The benefits of adopting lean construction strategies to your business
  • How construction software helps you build winning habits

Related content

Let's show you
how it works

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How to improve your construction company’s profit margin https://www.buildxact.com/au/uncategorized/profit-margin-ebook-fb/ https://www.buildxact.com/au/uncategorized/profit-margin-ebook-fb/#respond Wed, 21 Dec 2022 03:36:26 +0000 https://www.buildxact.com/au/?p=11386 Learn strategies you can implement to improve your profit margin.

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How to improve your construction company’s profit margin

One of the biggest challenges facing builders today is remaining profitable and keeping their business in the green.

We’ve compiled helpful strategies you can implement right now to grow your profit margins and make your business more successful.

You’ll learn:

  • The importance of forecasting your projects
  • How you can connect with your dealer for accurate pricing
  • The impact of using the right construction management software.

Related content

Let's show you
how it works

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What to expect from building material prices https://www.buildxact.com/au/blog/building-material-prices/ https://www.buildxact.com/au/blog/building-material-prices/#respond Mon, 19 Dec 2022 21:00:00 +0000 https://www.buildxact.com/au/?p=11096 Building material prices will see continued increases in prices. Find out what this means for your construction costs and what to expect.

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Among the most significant changes in the construction industry in the past year have been the massive hike in building material prices and the overall construction cost of a building a home.

The rise in construction prices has contributed to significant construction material shortages, leading to enormous delays and even the cancellation of home projects by multiple contractors.

But what is set to change in the coming year, if anything? Will the industry see a reprieve, or will construction costs climb unabated?

Rising material costs felt across the market

Unfortunately, the rising cost of just about everything has caused a massive stall over the summer as inflation tightened its grip on the Australian construction industry. The slowdown follows an enormous boom in the construction market before mid-2022. At that time, folks used COVID relief funds to invest in properties – property acquisition exploded, up 56% on the previous year.

No matter what part of the home construction industry, building material prices skyrocketed this year. The steelmaking industry saw a massive 42.1% increase in cost, followed by timber at 20.1%; up over 10% were electrical, plumbing, glass product and aluminum.

Why are building material prices rising?

Building industry material prices across the construction industry have skyrocketed for a few reasons. Whether you’re talking about concrete blocks, gypsum sheets, or even laminate flooring, prices are up. Experts see some consistent reasons why building material prices have risen steadily.

Shortages

There’s been a general shortage of raw materials across the construction industry. A rush on the housing market has primarily caused this, followed by the inability of Australia to produce its materials, which results in the sky-high price of importing materials.

For example, steel has a price increase that has left customers uneasy. The lack of iron ore production in China, upon which Australia depends for its steel-making material, further compounds already rising steel prices.

Other shortages include sand in the country’s southwest. Used as an aggregate for concrete, sand shortages cause supply chain distribution issues in the concrete industry that drive up the cost of houses. As a result, Australian building supply companies must increase their overheads that pass on to the customer.

Volatility of material prices

One of the most significant factors contributing to housing shortages in the market has been the volatility of material costs. In particular, there have been increases in the cost of lining walls, including the cost of sheetrock and gypsum sheets.

As the unpredictable nature of the global economy continues, with inflation biting hard, the cost of materials appears in a near-constant state of ebb and flow, which isn’t good for construction costs in any part of the supply chain – from the source to the end-user.

What are the cheapest building materials right now?

Concrete and concrete products represent the lowest overall increase in building materials in 2022. The average cement block price in Australia is $2.98+GST per unit.

The next-cheapest material is cement – with cement products making up only a 7.1% increase in material costs.

Producer Price Indexes (PPI)

What are Producer Price Indexes?

Producer price indexes are cost comparisons curated by the Australian Bureau of Statistics. The ABS releases this data annually to reflect the change in price from when a product leaves the manufacturer and begins its journey until it reaches the end consumer.

Key statistics 

A few key statistics encapsulate the current state of the Producer Price Index and give some idea of the state of the costs-of-production for multiple producers across the construction industry.

  • Input prices have risen by 2.9% in house construction, which means that it costs, on average, almost 3% more to put products into building a home.
  • Over the last 12 months, input prices have risen by 16% across the construction industry.
  • Timber prices, board and joinery (wood product) have increased by 2.8%. Timber-framed windows have increased by 6.8%.
  • Aluminum windows and doors are up by 3.8%. Meanwhile, other metal products have increased by 3.5%
  • Plaster products have increased by 3.0%.

Building costs crisis and increased prices

Australians now face some of the worst building costs in the country’s history. And price increases are not set to slow down anytime soon. August reporting indicated that soaring building material prices caused house-building prices to increase by almost $80,000.

Shortage of materials

Material shortages contribute to this. For example, wildfires have knocked off native supply of basic building materials. This has caused losses of an estimated $600M worth of native timber, the building blocks of most Australian homes. Timber shortages have led to increasing costs for available product.

Other material shortages, such as previously mentioned steel have been blamed on the war in Ukraine, China’s economic downturn and the lack of iron ore mining. This has left Australian construction companies with no choice but to import steel, which has caused massive price increases to the end-users build cost.

Labour shortages

The new report, 2022 Arcadis Construction, predicts 100,000 unfilled skilled labour roles by 2023, and according to the Housing Industry Association, labour shortages will only grow worse. Other statistics indicate that Australia’s greatest skilled-labour need is construction management. The direst shortages in the industry are civil, electrical, mechanical engineers and surveyors – another critical part of the home building process.

How construction companies cope with price changes

Given that the country faces a considerable housing shortage and those building companies that haven’t been forced to shut down still need to do the work regardless, how are they coping with the exorbitant price changes in the industry?

Shop around

When you’re shopping for something and see a price you don’t like, you shop around until you find the product in a price range that works for you. Construction companies are doing the same.

Before, construction companies would have the luxury of choosing from domestic suppliers of certain materials. Things like PVC ceiling board pricing – made partially from gypsum, was previously created in Australia in the necessary quantities for demand. Unfortunately, like many other building materials, Australian construction companies must shop for the best price for their bottom line.

Minimise wastage

This has led Australian construction companies to seek new ways to use different materials and ensure that they order what they need for a job. Philosophies like “measure twice, cut once” are heavily employed on job sites to reduce material waste and rely on better technology to provide accurate measurements. This includes the use of technology such as digital blueprinting software.

Look for alternate materials 

Supply chain issues have made the use of commonplace materials sometimes impossible, so companies have had to get creative and use alternative materials that are more readily available.

Given the intense environmental impact of currently-popular construction materials, it’s no wonder that industries are looking for alternative ways to deliver to their customers.

Alternate materials can even be used for larger projects – with timber skyscrapers built from the inside out becoming popular in Australian cities, reducing the load on concrete and steel workers and their increasingly-strained supply chains.

Manage building material prices with software

To save vast amounts of time and money, Australian construction companies are also turning to technology to do their inventory of materials. Given that the computer doesn’t lie and doesn’t make mathematic mistakes, inventory management software represents the way of the future for Australian construction.

Buildxact is one such software, a construction management software uniquely designed for residential builders and trades to help them manage projects more easily.

Key features include job management with equipment tracking, profit insights, benchmarking, project scheduling and quote management; and Supplier Connection which allows you to provide faster quotes and win more jobs by facilitating faster collaboration and more accurate pricing.

Improve the accuracy of estimates

A construction company’s estimate can be the difference between its quote being accepted or rejected. Given that the company knows the state of the industry beforehand, it has to vastly improve the accuracy of its estimates to ward off competition. Given the industry’s material shortages, construction companies are going to ensure that their estimates are accurate and they’re not over or under estimating material cost.

Track costings

When cost is as unpredictable as it currently is in the Australian construction business, keeping track of every penny is even more important for businesses. This means utilising technology to track costings and make cost analyses of projects, before Australian construction businesses quote on projects.

“Pick your battles” seems to be the order of the Australian construction business at the moment. Every piece of material is itemised into a construction materials price list in order for companies to better keep track of their expenditures.

How much does it cost to build a new home in 2022?

Building a new home is a big task for construction companies and the prospective homeowners alike, but with the cost of materials on the up-and-up, it will cost somewhere between $1,300 and $3,900 per square metre, depending on the number of rooms and the cost of materials at the time – building material prices have risen more than 16% in the last year.

How to manage delays and shortages

Managing delays and shortages can be a real challenge for construction companies. Customers have paid them to deliver a specific product in a specific timeframe and if they’re late on delivering that end product – it doesn’t look good on their company’s reputation.

Due to rampant insolvency within the industry, builders left a record number of homes unfinished this year. The Australian Bureau of Statistics reported 241,396 unfinished homes in June of 2022.

Managing delays and shortages comes down to be honest with clients and crucially providing alternatives to their preferred building materials, if there is a significant delay in acquisition.

Will building costs go down in 2023?

There’s plenty of market uncertainty ahead in 2023, however, the pace of increased costs should slow down slightly, with decreases of between six, four and three percent in the Gold Coast, Melbourne and Sydney respectively. This flows from what some experts see as easing pressure on global supply chains and increasing stability to a construction industry starved of good news of late.

Learn more how software can help manage rising material building costs

Today, builders like you use modern software to keep up with the latest material prices. Buildxact offers an all-in-one platform for takeoffs, estimating, quoting and job management.

Learn more about Buildxact pricing, or begin working today with a Buildxact representative. Book a demo or start working with Buildxact right away with a 14-day risk-free trial.

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What is lean construction? https://www.buildxact.com/au/ebook/lean-construction-ebook/ https://www.buildxact.com/au/ebook/lean-construction-ebook/#respond Fri, 16 Dec 2022 02:47:19 +0000 https://www.buildxact.com/au/?p=11189 Avoid wastage and save your business money by learning the ins and outs of lean construction.

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What is lean construction?

The state of the construction industry has drastically changed, forcing builders to reconsider how their projects can be managed.

Get to understand lean construction in this helpful guide, providing you with strategies to better control your projects, avoid wastage and save your business money.

You’ll learn:

  • The ins and outs of lean construction
  • The benefits of adopting lean construction strategies to your business
  • How construction software helps you build winning habits

Related content

Let's show you
how it works

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How to improve your construction company’s profit margin https://www.buildxact.com/au/ebook/improve-construction-profit-margin/ https://www.buildxact.com/au/ebook/improve-construction-profit-margin/#respond Fri, 16 Dec 2022 01:15:45 +0000 https://www.buildxact.com/au/?p=11142 Learn strategies you can implement to improve your profit margin.

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Share:

How to improve your construction company’s profit margin

One of the biggest challenges facing builders today is remaining profitable and keeping their business in the green.

We’ve compiled helpful strategies you can implement right now to grow your profit margins and make your business more successful.

You’ll learn:

  • The importance of forecasting your projects
  • How you can connect with your dealer for accurate pricing
  • The impact of using the right construction management software.

Related content

Let's show you
how it works

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Focus on new technology in construction to improve home building https://www.buildxact.com/au/blog/new-technology-in-construction/ https://www.buildxact.com/au/blog/new-technology-in-construction/#respond Sun, 04 Dec 2022 21:00:00 +0000 https://www.buildxact.com/au/?p=10634 New technology in construction is advancing and with supply shortages and prices uncertain, adapting these technological trends is vital.

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There is no shortage of industry articles detailing how home builders can use new technology in construction to improve efficiency and profitability.

Augmented reality, digital representation, drones and battery-powered backhoes may make for interesting reading about technology trends, but it’s important for home builders like you to focus on the technologies that improve traditional home construction methods with little investment of your time and effort.

That’s why home builders, when evaluating the latest new construction technology, should first look at cloud-based job management software to better face the challenges of today’s home construction industry. 

Today’s challenges demand construction workers save time and money

You already know that rising material prices and labor shortages make the cost of doing business more expensive and complex. Home construction jobs simply take longer to finish when materials and the experienced trades needed to install them are in short supply. 

Working on a drawn-out job that may wind up losing you money is a tough spot all home builders and construction companies try to avoid.

As you realize a job might lose money, odds are as the weeks turn to months, your enthusiasm and ingenuity for the job will drop. This can lead to poor customer service and frustrated clients who can damage your hard-earned reputation. 

What is the role of technology in the construction industry?

The trick to working profitable jobs is to use technology to stay in your wheelhouse. You need to focus on the kind of construction job that matches the strengths of your home construction company. When you stick to your niche, you become better at finding the clients that your home construction team serves best. 

Of course, finding those clients requires proper marketing and networking, but ultimately, you also have to adopt a construction process that allows you to estimate and quote more jobs in less time so that you find the jobs that serve you best.

Accurately quoting more jobs using the right construction technology gives you the confidence to grow your business’ profits.

Also, many home builders use the quoting process to evaluate the nature of the potential customer as well as the job scope.

Discussing material and labor prices with homeowners often reveals red flags about the future client. People who excessively haggle your estimate or expect you to cut corners on quality may not be right for your business. When you are quoting more, you have the power to say “no” when the fit isn’t right for you. 

Builders like you are discovering the path to increasing their capacity to quote lies with modern job management software. Modern software designed for the home construction sector lets you learn a set of basic computer skills that do multiple construction management tasks from one software platform. 

Construction management software offers end-to-end improvement for your construction jobs

Successful builders in today’s market have a clear method for forecasting the cost to build a job. Once those costs are understood, the builder sends out professional quotes that quickly lay out all the tasks, labor and materials needed to finish the job.

Clear customer communication about costs and scope is one of the quickest paths to winning more jobs. Construction technology is then used to manage the job to its final completion and invoicing.

New technology in construction saves upfront admin time

Builders using modern software don’t lose hours behind a desk quoting and closing customers because modern construction technology serves as a one-stop-shop for takeoffs, estimating and quoting. In some cases, the time needed to do a takeoff can be reduced by as much as 80%. The software also offers customizable templates that make writing a quote letter a less time-intensive task. 

Construction technologies can ease planning complex jobs

Once you have the proper customers onboard, running your jobs smoothly helps turn a consistent profit and makes for a satisfied customer. Here again, new construction software can help. 

Today’s best software also offers scheduling and budgeting tools that you set up using your original estimate. This eliminates duplicative work and overly complicated spreadsheets that lead to costly errors.

Imagine scheduling tasks straight from your estimate so that you can see it all on a single chart. The best software allows you to set due dates and assign tasks by email all from the same platform, and this saves you the time and hassle of learning multiple apps or managing confusing spreadsheets.

Construction companies can schedule tasks more efficiently using technology

Once a job is up and running, you can adjust tasks with the click of a mouse and email your team updates quickly and easily. Having the right trades on your job sites at the right time is critical to running a successful job. 

When using modern technology, those successful jobs also pay dividends in the future. You can create templates from your most successful jobs so that you don’t have to start estimates and schedules from scratch with every job.

And because tracking actual costs is straightforward and doesn’t require confusing spreadsheets, you can track your actual costs to your original estimate to identify areas of your build that had unexpected price increases or needs better supply chain control.

With the right software you can create a cycle of continuous improvement that makes you far more efficient than using a traditional method of job management.

Modern technology enables greater supplier collaboration in the home construction industry

As home building become more challenging, builders and suppliers are collaborating more closely to meet the needs of the construction industry. Modern cloud-based tools are giving builders a way to communicate online with their suppliers so that quoting customers is not only easy but highly accurate. 

You know how frustrating unreturned phone calls and emails can be, especially when trying to talk to suppliers about basic things like material pricing and availability.  Waiting on unreturned calls leaves little time for true collaboration among home construction professionals.

How modern technology helps boost collaboration

Modern software makes all of this so much easier because it’s shared online within common workflows that eliminate the need to endlessly email or call your suppliers. Imagine sharing your job details with your supplier straight from the same platform that you used to build your estimate.

Now, imagine that the supplier has shared the material pricing with you in an online file that you can access at any time you need it—even from your construction sites. In some cases, data collected by modern software can offer material prices in real time.

This frees time for you and your supplier to collaborate on other things than pricing. A supplier can suggest different material options that you might not have considered that speed up your job without sacrificing the quality and performance of your build.

If you want to learn more how modern technology can help you work more effectively with your supplier, check out this resource.

Why do we need new technologies in the construction industry?

Many home builders put off learning new technology out of fear it takes too much time. However, with the latest home construction technology, it’s never been easier for construction managers like you to learn how to use construction management software. 

With the same point-and-click mouse and keyboard skills you use to surf the internet and use your favorite phone apps, you can learn how to quickly set up a customized account to perform digital takeoffs, material estimates and job schedules for all your construction jobs. 

To learn more, why not schedule some time with Buildxact? Or visit Buildxact’s website where you can learn how easy it is to get started with a low monthly subscription. Or start today with a free trial or demo.

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Learn how new construction materials impact today’s custom home projects https://www.buildxact.com/au/blog/new-construction-materials/ https://www.buildxact.com/au/blog/new-construction-materials/#respond Thu, 10 Nov 2022 21:00:00 +0000 https://www.buildxact.com/au/?p=10103 Custom builders better manage new material purchases using online tools. Today, many homeowners look to sustainable materials in their custom home projects.

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Custom builders looking to manage the cost of new builds and remodels using new construction materials are increasingly using online tools to track availability and cost so that they can help homeowners get the highest quality build while staying on budget.

In fact, one in three pro builders switch material brands at the time of purchase and make this decision increasingly via online ordering, according to a 2022 industry study from The Farnsworth Group.

With inflation expected to keep the cost of construction materials high well into 2023, builders will need to continue to advise their homeowner clients on how building materials impact the final cost to build their home. Builders having quick access to the latest pricing on new construction materials will have an advantage over their competitors when it comes to accurately quoting customers.

As you track the latest material trends, keep in mind that 66% of homebuyers rate sustainability as important to their purchasing decisions. Here are some of the product categories homeowners are likely to ask that you research and price in their quote:

New building materials for sustainable roofing  

Solar

Homeowners increasingly ask about rooftop solar panels as an optional material for boosting the sustainability of their new home. By 2030, about 13% of U.S. homes will have a solar photovoltaic system to generate electricity.

This is fueled in part by mandates that builders in some states need to be aware. For instance, in California, new single-family homes up to three stories must have enough solar generation to meet the home’s annual power needs. Builders can install smaller solar systems if battery storage or other energy-saving initiatives are part of the home’s design. 

Worldwide, other countries are adopting solar into residential construction at a pace largely based on local electricity prices and area weather conditions. In Australia, 31% of homes have some kind of solar system for generating power, and that country’s government hopes to grow the percentage to 50% by 2030. 

Solar panels have expensive upfront installation costs and can be tricky to finance with a mix of government incentives; so many homeowners interested in environmental sustainability opt for more traditional material choices. Included among these are:

Insulation

Renewable and recycled materials like sheep’s wool and denim are increasingly becoming options for insulation, but builders can consider certain plastics and spray foams because of their greater efficiency to resist heat and to seal leaks and drafts.

Radiant barriers 

Many custom home designs now call for radiant barriers beneath the outermost roofing material. Silver-colored barriers help reflect heat away from the attic, where the temperature rises as heat flows to the interior space from the outer building material.

Modern shingles and tiles

Homeowners are increasingly asking for more options beyond asphalt shingles, which are a byproduct of oil refining. Metal roofs do a good job reflecting heat, can be made from recycled material, and offer different designs using options like rugged, lightweight corrugated sheets.

Other composite building material made from recyclables like plastic and rubber mimic the appearance of shingles made from cedar, clay and slate. These materials come from naturally occurring resources but have drawbacks. Cedar is subject to mold and mildew, while clay and slate are both supremely durable but are heavy and difficult to install.

The wider construction material landscape

Concrete alternatives

Cement needed to make concrete for constructing buildings emits a large amount of carbon dioxide (CO2) during the manufacturing process. In fact, climate researchers say up to 8% of global carbon emissions come from concrete manufacturing. Alternatives to concrete to combat carbon emissions include ByBlocks made from plastic waste, bioconcretes like the one from Prometheus Materials that uses microalgae as a binding agent, and Ashcrete made from the byproducts of coal-fired power plants.

Other concrete advancements are helping reduce the overall need for the building material. For instance, there is bendable concrete, also known as Engineered Cementitious Concrete. Developed by a team at the University of Michigan departments of civil and environmental engineering, this fiber-reinforced material has greater strength than traditional materials.

Bendable concrete under extreme stress is better able to hold a structure, such as load bearing walls, without cracking because it can “give” in much the same way as plastic.

Another concrete advancement is self healing cement or self healing concrete. The idea behind self healing concrete is that naturally occurring proteins added to the material give the concrete the ability to form calcium carbonate. The calcium carbonate forms when exposed to CO2. The material fills the small cracks as they appear over time in concrete.

Redefined finishing materials 

Designers and builders commonly use wood, stone, brick and glass for the architectural finishes that give custom homes thier unique look. Increasingly homeowners are looking to materials like bamboo and cork for flooring and wall coverings and engineered quartz for countertops.

Because bamboo is fast-growing, requires little water, and can have the same appearance as wood, it also is an increasing option among engineered flooring products. 

The changing uses of steel and wood

Steel increasingly is becoming an alternative to aluminum and plastic when manufacturing doors and windows. Steel window frames and doors are stronger, do a better job insulating against moisture and can be made from recycled materials to reduce carbon emissions.

Because steel is energy intensive to manufacture and transport, the construction industry is looking for new ways to replace structural steel with lighter engineered wood building materials, know as mass timber.

One new thought is to use mass timber to replace steel and concrete support structures. Glue laminated timber can create support beams, and cross laminated timber forms strong building panels for floors and walls.

Yet another possible future use of wood is surprisingly in the manufacture of window glass. Transparent wood is made possible by chemically treating thin layers of balsa wood and is said to have greater insulation properties than traditional glass.

 Sourcing sustainable materials

Finding a trusted supplier of sustainable building materials can be time-consuming. It’s best to begin with your current network of suppliers to see what sustainable products they offer. Before researching and quoting with any reputable supplier, it’s best to know precisely the type and amounts of material you need for your project.

It’s important to know your project’s material counts before you request a quote because some suppliers have minimum and maximum order quantities when it comes to purchasing sustainable construction materials.

Be sure you have detailed plans from which to work. With modern construction estimating software, you can quickly perform a material takeoff to calculate all the various materials needed. With this in hand, you can then begin speaking to suppliers about sourcing materials.

Keep in mind that third-party organizations, such as the Forest Stewardship Council, certify timber and wood products to ensure manufacturers source in a manner that best prevents deforestation. Ask your favorite supplier if they provide these certified construction materials.

Supplier collaboration is key

As you can see, collaboration with your supplier is critical when purchasing sustainable construction materials. But supplier collaboration can help with all facets of your project.

Today, online software tools allow you to submit material quotes online so that you can have the latest pricing information without all the wasted time that comes from leaving unreturned phone messages and emails that get lost in the shuffle. 

When you hear back from your supplier faster, you can accurately quote your customers with a professional, detailed estimate that beats the competition.

Revolutionizing the Construction Industry

Today, home builders like you are using modern software as their go-to source for estimating. Buildxact offers an all-in-one platform for takeoffs, estimates, quoting and job management.

Learn more about Buildxact pricing, or begin working today with a friendly Buildxact team member. Book a demo or start working with templates right away with a 14-day free trial.

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What is lean construction? https://www.buildxact.com/au/blog/what-is-lean-construction/ https://www.buildxact.com/au/blog/what-is-lean-construction/#respond Sun, 02 Oct 2022 21:00:00 +0000 https://www.buildxact.com/au/?p=9939 In a tough economy, it's important to learn new ways of planning custom home projects. Learn how lean construction can grow your business.

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Lean construction offers powerful ways to reduce wasted time and money

Home builders in major markets across the globe face a far different market than in 2021. As rising mortgage interest rates price ever more potential buyers out of the market for homes, builders see less demand for new home construction. As a result, the current state of the construction industry has builders concerned for the future health of their business and looking to newer methods such as lean construction.

The way forward is rethinking how home builds are managed. With decreasing volume and sentiment, home builders need to ensure each home project they undertake earns a fair profit. Fortunately, builders can learn from the experience of other industries that have battled the same concern for efficient job management.

You can achieve sustainable profitability when excess costs and inefficient activity are wrung out of the business. In other industries, project managers have successfully done this using lean philosophy. Construction companies and home builders have adapted this into lean construction practices.

Adopting lean construction practices in home construction

Lean management, more traditionally applied to centralized manufacturing like automobiles, helps the home builder continuously improve to reduce wasteful spending and inefficient labor practices at the job site. But there are other benefits—like giving the entire build team a greater say in best practices and job site safety.

The idea of lean management originates with manufacturing concepts first tried by Taiichi Ohno and Shigeo Shingo beginning in the mid-1950s under the Toyota production system. Ohno identified seven areas of waste, and competitive builders recognize many of these as they manage their own construction projects.

How lean construction benefits the home builder

Home builders like you may not think of what you do as lean construction, but your concern for minimizing waste is very similar. It’s easy to imagine how ordering too many materials blows your budget or how ordering not enough results in wasted time and money on last-minute runs to the lumber yard.

When you work to eliminate waste in your build and gain efficient job management, you are solving the same kind of problems that concerned the founders of lean project delivery. They too wondered if fewer materials could create a product or whether their team members were spending time doing the right things.

How software helps establish stronger work habits

To eliminate waste in your home construction process, you need to have greater insight in how your project and its supply chain are running; you have to establish targets to measure your team’s success; and you need the right data to set a strategic vision that better predicts future project outcomes.

Increasingly home builders and renovators are turning to modern construction management software to generate this data, and the increasingly competitive builders are using cost-effective cloud software to serve as their lean production platform. With the right software, builders gain the necessary production control from which smart lean construction decisions can be based.

Planning a more profitable construction project

Profitability is all in the upfront planning, and today’s leading cloud-based home construction management tools offers accurate project estimating and quoting to prepare builders to run a successful project from its early stages to final invoicing. When using software, you generate a detailed estimate faster than traditional construction project tools. These modern estimates document all the critical tasks and the associated labor and material costs.

The estimate and quote not only fully informs your homeowner of what to expect but also forces conversation among you and your tradies about the quantity and quality of materials and the necessary time for installation. Get everyone on the same page before you hammer the first nail. You will find it is critical for cost control, scheduling and continuous improvement.

It also helps you figure out your core team of reliable subcontractors. Remember, subcontractors quoting the lowest cost or quickest turnaround may not be worth the upfront savings they promise you serving as the general contractor. You risk wasted materials and unplanned rework to correct poor workmanship.

In the lean construction process, rework, or what some refer to as defects, are a form of waste to avoid in the construction process because they generate expensive, disruptive variations.

Coordinating schedules avoids wasteful downtime

Today’s modern software makes estimating and quoting a fast and efficient process so that you close the sale more quickly. Once the homeowner commits to the project and you’ve designated your team to do the site prep, framing and other tasks, you then can jumpstart the actual build of your home project.

Here again, the basic concepts of lean management help you gain project control. When deciding how work should flow from one phase of the build to the next, you have to coordinate and schedule ahead of time the arrival of materials, equipment and the skilled subcontractors who work your job site. You can’t afford to have team members waiting for materials. Lean construction practices demand that there should be no waiting and no downtime.

Modern software helps you avoid downtime through detailed scheduling tools that allow you to use features like color-coded Gantt charts to see how work is progressing and what jobs depend on another task’s completion.

The right software allows you to adjust schedules and material deliveries in real time with simple, point-and-click computer mouse commands that use the same job categories that were used in the original estimate.

Everything stays neat and organized to minimize waste. By tracking schedules for each job, you will learn as each job is completed the ideal time it should take for specific tasks.

Using budgets to benchmark your construction activity

The best software also offers budget and invoicing line items for the many tasks required to complete a home build. Tracking expenses by tasks and categories gives you the ability to see what parts of your project bring the greatest value. In terms of lean principles, this is what is known as identifying your top value stream.

Whether it be framing, roofing, or plumbing, you want to know where your team is the most efficient and where the greatest costs lie. You want to continue doing what you do well so that you can focus on improving the wasteful and expensive areas in future projects. It might mean hiring a new set of subcontractors who work more efficiently or perhaps it means finding a more affordable supplier for the materials involved with that costly work.

How to adopt lean construction in your business

Many home builders like you are using Buildxact as their lean management platform. Buildxact offers time-saving digital takeoffs, estimating and scheduling for a low monthly subscription. Want to learn more? Book a demo or free 14-day trial today!

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