The construction industry in the United States is worth a whopping $2.1 trillion annually. While that is a whole lot of pie to be divided among the thousands of firms across the country, with great upside comes equally significant downside. It costs money to make money in the construction field. Without the proper planning and management, the path to bankruptcy can be a swift one.
Fortunately, there are numerous strategies, tools, and software systems available to construction firms to help them improve their bottom line. Keep reading as we explore the benefits of smart budgeting and project management and how they add efficiency to construction projects.
Enhances Collaboration
A typical construction site is a sea of moving parts. It can be difficult to get all contractors, subcontractors, consultants, laborers, and managers on the same page.
Modern construction project management software provides a solution to this issue by streamlining communication among all project stakeholders. By facilitating scheduling, machinery usage, messaging, and document storage, all members of the project are given real-time access to important updates, reducing downtime and cumbersome in-person meetings for more productive workflows.
Reduces Long-Term Costs
In a more conscientious built environment, it is increasingly important to keep the future in mind. It is no longer acceptable to push future costs and environmental dilemmas off on posterity. Modern architects and designers bear the burden of financial and environmental responsibility like never before.
With this in mind, modern construction budgeting uses dynamic methods to determine the long-term costs of the project. Will the energy efficiency of the structure be strong enough to provide meaningful energy savings over time? Does the structure have thermal insulation materials that will stand up to tightening environmental building codes? Is there sufficient technological integration to future-proof the structure and reduce the risk of expensive renovations/retrofitting in years to come?
Streamlines Waste Removal
Effective project management involves more than just building. Waste mitigation is an equally pertinent consideration. The EPA estimates that a whopping 600 million tons of construction and demolition waste is created each year in the United States. If waste removal is not a top priority, the job site will become cluttered, inefficient, dangerous, and potentially subject to fines.
Mitigating construction waste is a key component of a project manager’s job. Explore roll-off dumpster sizes to make sure that you have a variety of receptacles to most effectively serve the site. Look into recycling and compost bins for the most mindful waste removal possible. It is also important to have a reputable hydrovac provider on retainer. There are certain types of hazardous waste that carry hefty fines for improper disposal. A hydrovac truck is licensed to suction all such waste into a tanker truck and remove it from the site, transporting it to an approved area for safe disposal.
Eliminates Redundancy
Redundancy is one of the most financially-draining downfalls of a construction firm. Double-booking machinery rentals, having multiple software programs that serve the same function, overlapping documentation, and unnecessary levels of approval are just a few of the ways that construction firms hemorrhage money through redundant processes.
To reduce the risk of paying for the same thing twice, it is a great idea to install an on-premise ERP for your construction business. An ERP is a comprehensive software system that helps construction firms integrate their core business processes. The cost of ERP implementation will pale in comparison to the amount of money saved via improved operational efficiency. By automating tasks, reducing the need for multiple software systems, streamlining processes, and offering key business insights, the firm pares down financial outflows previously spent on redundant tasks.
Facilities Focus On Core Competencies
Pulling highly-skilled professionals from their core competencies to perform low-skilled work is a harbinger of inefficiency at the construction site. Not only are you paying an elevated rate, but skilled workers are missing the opportunity to use their expertise to innovate and identify potential issues as the project unfolds. Therefore, smart project management is crucial in ensuring that all team members are staying in their designated lanes. This helps improve the quality of work performed and reduces the risk of creating blockers that slow down operational flow.
Improves Material Delivery
Material sourcing issues are one of the great challenges of managing a construction budget. With building materials already at all-time highs in cost, any disruptions in the supply chain or material sourcing will only serve as a greater threat to cause budget overruns and erode razor-thin margins. Therefore, project managers are finding unique ways to source materials to the work site. Just-in-time delivery is a trendy option as it helps ensure that construction sites receive project materials on an as-need basis. This reduces the risk of stock out, theft, vandalism, weather damage, and any other factor that traditionally limits material availability.
Leverage Contemporary Budgeting And Project Management Software For More Efficient Construction
Although there is significant financial upside in the construction industry, the cash burn can spiral out of control quickly if not carefully managed. From enhanced collaboration to improved material sourcing, consider any of the benefits listed above for investing in smart budgeting and project management tools for your construction firm. For more of the latest trends in contemporary design, explore the resources at My Beautiful Adventures for ideas and inspiration today!
