As we enter 2025, cost control is emerging as the critical focus for contractors to thrive in an increasingly competitive and challenging market. Rising labour costs, supply chain pressures, risk of Trump & potential tariffs, and tighter margins make this theme more relevant than ever. 

Just passing on increased costs to the customer will not be answer!

At Southbrook Accounting Services we’ve identified 10 actionable strategies to help contractors take control of their costs, boost profitability, and strengthen their market position.

10 Key Strategies for Cost Control:

1.      Accurate Project Estimation: Avoid overruns with precise takeoffs and detailed cost breakdowns.  Ensure feedback is coming in from the job site.

2.      Streamlined Procurement: Negotiate supplier discounts and purchase materials strategically to prevent last-minute price hikes.

3.      Efficient Workforce Management: Track labor hours diligently and optimize staffing levels for productivity.  Set daily goals with your staff.

4.      Project Scope Management: Clearly define the project scope and enforce change order controls to prevent scope creep.  Ensure change orders and extras are being captured & invoiced!

5.      Invest in Technology: Use management software to monitor costs and resource allocation in real time.

6.      Equipment Maintenance: Regularly maintain equipment to reduce downtime and avoid costly repairs.  Ensure you have a capital budget plan, otherwise you will have old equipment and no money for new pieces!

7.      Subcontractor Oversight: Vet subcontractors carefully and set clear expectations to minimize rework costs.

8.      Waste Reduction: Adopt materials management practices to lower onsite waste and avoid unnecessary expenses.

9.      Monitor KPIs: Track cost variance, labor efficiency, and other KPIs to spot opportunities for savings.  Invest in good bookkeeping & accounting services, who understand your industry!

10.  Continuous Training: Train your team on efficient practices and emerging technologies to minimize errors and improve safety.

By implementing these strategies, contractors can position themselves for sustainable growth while improving profitability.

However, benchmarking your company to the Best-in-Class is critical to see what is possible. DOWNLOAD this FREE resource to see how you compare.

Call-to-Action:
Let’s make 2025 your most efficient and profitable year yet. Reach out to me at nathan@southbrookaccounting.ca or visit www.southbrookaccounting.ca to learn how we can help you implement these strategies for success.