The construction industry is a broad field that changes and evolves over time. With the uprisal of new technologies and modern industry requirements, businesses had to make a shift and adapt to the new practices. Because traditional tactics were not working anymore, a new set of rules and methods emerged as imperative actions for business growth and success. These are some of the best construction industry practices to implement in 2021:
Procurement of Practices
Procurement is one of the most important strategies in construction and requires a thorough approach to each project. A construction company must develop and implement a detailed plan by purchasing the supplies, goods, and services to follow the project from start to finish. In the essence, procurement is all about acquiring the necessary staff and equipment in accordance with the project quality, timeline, and budget.
Strategic procurement is achieved through setting up long-term objectives and following detailed plans step-by-step. Some of the factors that influence procurement practices are project costs, risks, opportunities, and more. The modern procurement practices include selecting appropriate methods according to projects, picking reliable teams to design and finish projects, and setting up financing and management plans.
Partnering of Practices
Compared to the traditional approach to construction strategies, the modern methods include partnering as an important working style. Partnering or alliancing is a collaborative management strategy that encourages trust between parties to a contract and provides benefits for both sides. Because parties become dependent on one another, they join forces to overcome challenges and finish projects successfully.
The collaborative strategy provides higher profits for both sides of the contract and allows them to build working relationships, plan investments, and improve and meet objectives with greater accuracy. The two main types of collaborative management are a partnering/project relationship and strategic partnering. The former involves collaboration on a specific project, and the latter entails a multi-project relationship.
Risk and Value Management
Predicting risks in construction is not easy but remains imperative for successful business operation. If a company desires to achieve ultimate results with every project, it’s essential to project the risks beforehand. This way, a business can counter and resolve problems with efficiency.
Along with risk prediction, value management is another thing construction companies should conduct at the start of every job. This practice takes into account time, cost, and risks associated with projects and allows team members to act upon them and satisfy client’s needs.
Prioritizing Health and Safety
Prioritizing health and safety has always been the number one concern in construction. Considering the construction site can be a risky place, all the workers need to be protected against risks and safety hazards. Effective planning and managing of the job site are imperative for achieving productivity and profitability as well.
With the COVID-19 situation, prioritizing health and safety is more important than ever. Thus, proper planning and scheduling are essential if a company wants to run a successful and safe project. Along with standard regulations, construction companies should follow the guidance of the Occupational Safety and Health Administration (OSHA) and the Centers for Disease Control and Prevention (CDC) for maintaining safe working environments during COVID-19.
Getting Bonded and Insured
Construction comes with a number of risks, and no project owner is ready to gamble on a contractor who seems unreliable. Therefore, a construction business license is required in most states, and one acquires it through surety bonds. Being bonded is more helpful than it might seem at first as it helps in creating trust between companies and project owners. Bonds also aid construction companies in building and protecting their reputation, guaranteeing financial coverage to the clients for all the contract breaches.
Getting insured is also an essential step in the process of building trust between the company and the clients. Insurance shows project owners a business is financially stable and covered in case of unexpected problems. Considering all of this, getting bonded and insured is one of the top construction industry practices a company should implement for successful business operation.
Are you ready to be bonded and insured but don’t know where and how? Contact Bonding Solutions, a surety agency with over 60 years of experience in the industry and most affordable rates. We are here to help construction companies grow and meet business plans with higher accuracy for maximum results!