With as many decisions that a construction leader must make during the day, having greater empowerment to make financial decisions must be part of the construction leader’s profile. For example, how many of the decisions listed below have some financial impact on the company?
- Purchase needed tools from a local supplier because the distance to return to the shop and retrieve the needed tools is too costly
- Change material provider from what was considered in the bid due to closest plant’s poor quality or delivery history
- Hire or fire workers with more or less experience
- Development of a budget for a project, department or company
- Decision to move company services into a new geographical market that has not been traditionally served
- Move workers to a better role for them…one that should pay more
- Giving a pay raise to a worker worthy of the increase
- Heck, even what will be served at an employee appreciation luncheon
The size of the financial impact made by a decision can certainly depend on the level of responsibility of the leader. Obviously a president or vice president (both nonfamily members) making a decision might have a greater financial impact than the decisions made by a project manager or crew foreman. However, a similar approach can be employed that guides any level of leader in a construction company.
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Source: 6 Guidelines to Improve Lean Financial Management in Construction
