The hefty costs associated with front-end loaders, digging machines, and other specialized construction equipment are well known. It’s no surprise, then, that construction firms pay close attention to the cost and maintenance of these machines. But all too often, comparatively lower-priced smaller tools and materials are overlooked.

In reality, however, these costs are anything but insignificant. In fact, failure to utilize small tools efficiently and keep track of their whereabouts results in unnecessary losses for contractors year after year. Addressing this problem can provide big returns for relatively little investment.

Securing the Site
The first step that all contractors should consider is security at the job site. It’s unlikely that someone will drive away with a slow-moving bulldozer, but the temptation to steal smaller tools or materials is ever-present.

A formal policy should be created to clearly outline what is permissible (e.g., use of company vehicles) and what constitutes theft (e.g., taking "scrap" materials). In addition, begin each job by collaborating with subcontractors and on-site personnel to develop a security strategy, much in the same way that safety issues are addressed. Subcontractors often contribute some of the best ideas because they’re closest to the day-to-day activities at the job site.

Law enforcement agencies should also be apprised of work schedules so that they know what activities are scheduled for day and night shifts. Consider establishing an anonymous tip line to discourage and thwart tool theft. Other precautions include:

• Installing adequate lighting for evening work
  
  
• Using secure fencing where appropriate
  
  
• Limiting access to material receiving areas
  
  
• Establishing key-control procedures
  
  
• Establishing guidelines for using a security service
  
  
• Posting signs to discourage theft

Tool-Tracking Software
New technologies are also available to help eliminate small tool losses. Several software programs and bar-coding products can accurately track smaller items. This technology not only deters theft, it also enhances efficiency by combining aspects of inventory control and accounting systems. It lets the general contractor know who has what tool, how that tool is being used, and for how long. The comprehensive reports these databases create help contractors analyze how equipment and materials are used, often revealing new ways to share tools more efficiently, or to handle and store critical materials to minimize downtime.