Costs are an integral part of the construction business: the industry spends money to make money. But despite some of its best efforts, considerable operating costs are making it more challenging to compete and, in some cases, undermine the quality and value of the projects delivered to clients. Coupled with this are the mounting administration costs, salaries, rent, and others that send the red marker of some companies into overdrive. An obvious solution is to reduce these operating costs to remain profitable and competitive.
Before we look at how to reduce operating costs, let’s quickly define them to put further discussions into context.
