Accelerating digitalisation is one of the major trends that will affect the construction industry by 2022. That means that construction companies have to identify the right software that can serve their needs the best.
Although they might be interested in purchasing general-purpose software that can be used across multiple industries, this kind of software is not designed to take into account the various particularities that are unique to the industry of construction. For instance, the practice of using several subcontractors.
In this way construction managers and project managers firms should search for top-of-the-line software that reflects the particularities of the field. The software they select must be backed by a top implementation, training, and assistance.
An important factor to think about is the level of industry knowledge that is available in the software company’s team members. Are they just techies or are they professionals who have been in the business and are skilled at applying their sector expertise to assist construction companies incorporate best practices in their business practices?
Furthermore, the ever-increasing rate of software development and technological advances means that construction firms must find software providers that are local in size or are part of the group of companies with innovation at their heart.
It is crucially important that effective construction software development must provide the following benefits to ensure that construction companies maximize their profit and effectiveness:
1. Cost Projection
Being able to complete construction projects in the crucial parameters of budget and time is dependent on having control over cost and control of performance.
The most significant value of cost management software is the capability to estimate costs over the entire lifecycle of a plan. It is the only method to predict costs costs is to have a clear picture of the amount used up to this point and the amount that will be required in the future.
This is not possible without software due to the massive amount of data to be taken into consideration as well as the many moving parts that comprise an construction project. Software that can do this in real-time is the most efficient. It allows expenses to be incurred as soon as they are caused. It means there is no need for an invoice to be issued to allow the cost to be acknowledged.
For instance it is the case that when readymix concrete gets shipped to the construction location it is delivered with a delivery notice. The construction company has incurred the cost , even though they might not receive the bill a few days after. At this point, the project has moved on and the requirements for readymix concrete may be different, resulting in either too much or less readymix concrete being on site, if projections are not accurate.
Construction software must fully incorporate the entire project, from estimation right up to handover. The software should give access to comprehensive analysis and reports at any point.
2. Management of Subcontractors
Subcontractors are playing a more important part in construction projects around the world. As lead contractors adopt more of a management task, they typically have to oversee several subcontractors.
This has created the need for specific tools for managing subcontractors this is a more complicated task as compared to, say the procurement of materials. A good construction software program offers services for managing supply, which include tenders and quotes, job assignment and complete invoicing (factoring the requirements specific to milestone reporting, completion certificates , and invoicing and payments).
3. Cost Value Reconciliation
Construction software reduces risk and controls costs and time by constructing intuitive cost reports and valuations that are relevant for the cost-value reconciliation (CVR) method. Monitoring and evaluating the actual cost against forecasted and budgeted expenses provides a daily overview of the project’s performance through comparison of cost and value over the duration of the project.
4. FinOps – Financial Operation (FinOps) Management
A well-designed software system ensures that business intelligence is up-to-date and readily available for reporting on every aspects of financial and operational operations, as well as at the project and company level. This is essential in the modern business world where managers require a thorough assessment of their current situation at any given moment, permitting companies to deal with and overcome difficulties and issues efficiently, and without unexpected surprise.
5. Plant Management
Utilizing the most efficient use of resources, no matter if they are owned or rented is vital to maximizing cost efficiency. It is rare that Enterprise Resource Planning (ERP) systems have a specially-designed plant module that handles the control of construction equipment and small tools. Specific tools for the industry are required to handle the nuances of industry such as in the construction sector Project managers have two options: employ a third-party or to utilize internal resources. This involves weighing the cost and availability. When it comes to costs capital and operating expenses have to be considered and this will require details.
Software provides the conditions to make an effective choice, allowing the manager to consider trade-offs, analyze the situation and figure out what the best solution is.
In the end, a complete plant management system lets project managers to be aware of what equipment is in stockparticularly if there are multiple projects in at the same time and also how it can be distributed more efficiently. Every piece of equipment can be monitored and reported according to the type of resource, its current location along with the costs (charge cost) to forecast and plan its optimal use.
6. Document Management
Effective software keeps track of revisions to documents in check-out, check-in and check-out, as well as keeping track of unpublished versions. This stops revised or amended documents from becoming accessible until they have been approved in addition to being in a position to determine who has read revisions that were made public.
The system also ensures that all documents are filed correctly in the proper locations. They is able to be accessed and organized or sorted according to the department or project region or any other criteria that is relevant.
An excellent example is managing changes to designs. Project managers are often faced with numerous revisions to designs. It is important to control the flow of documents from the engineer to the architect and after that, the contractor. Most of the time, these are complicated sketches and it is difficult to pinpoint exactly what is changing.
Alongside controlling the flow of documents the right software can help users to comprehend the drawings.
Additionally, document management tools allow collaboration in projects. This is essential in a field that is typically characterized by lack of collaboration. When there are multiple stakeholders involved in projects, the use of collaboration and document management tools is essential for efficient sharing of information as well as ensuring the efficiency of the project. To address the issue of who has access to the data and information software tools allow for the pre-definition of the role of each stakeholder and the data they be granted access to.
7. Remote Access and Updates
The introduction of 5G technology and the latest cloud-based software solutions allow users to access, store and process information from any location and at any point. It can be as easy as updating contacts, all the way in the process of updating information, changes or delays in the field as it occurs.
8. Governance and Compliance
Software allows for compliance to tax regulations and IFRS accounting guidelines. Furthermore, the construction software together with the latest technological advancements as well as internet of things, Internet of Things, can assist in ensuring the compliance of certain elements of construction, such as safety that can be tracked by placing cameras in turntiles to verify that each worker is equipped with the appropriate safety equipment and tools.
From a governance standpoint Construction software can assist in the execution of internal procedures and policies by, for instance, making sure that procurement uses specific suppliers who are incorporated into the accounting and procurement systems and buying in accordance with the budgeted quantity, rate, and cost for all resources.
By adopting digitalisation by investing in software which provides these amazing advantages, construction firms are better equipped to minimize risk, simplify processes, boost efficiency, and improve profits.