How to Reduce Operational Costs with Construction Management Software

The Benefits of Digitising Construction Data

The right construction management solution will connect teams, automate redundant processes, identify issues and trends, improve collaboration, reduce operational costs and guide informed decision-making from real-time connected data.

The right construction business software gives users the ability to retrieve and edit data from anywhere. Data is entered one time which reduces errors and increases efficiencies because all the data resides on one platform, and deciphering handwriting from the field is no longer a guessing game. The cost of printing and storing documents is reduced, and large files that include photos and drawings are no longer tied up in email platforms that limit file sizes.

Project managers no longer worry about documents blowing away or getting wet from humidity or dirty from being handled by multiple people. Sections of digital documents can be copied and used as templates for other projects which saves time and administrative costs.

Benefits of Construction Software

The goal of implementing construction software should be to improve your workforce, workflows and reduce your operational costs. Construction management software offers multiple benefits such as scheduling, collaboration, estimating, document management, resource management, accurate job costing, work order management, project tracking and financial reporting. Construction companies benefit from the flexibility of connectivity. No matter where teams are located, they can seamlessly connect to projects, data and stakeholders and view the same data.

Data is available in near real-time which eliminates data silos and the man hours it takes to consolidate that data. Industry-specific construction software should support a range of business functions and be configurable to meet your business needs and successfully transform the way you work.

Construction Management Software Features

Would a change in processes affect your labor, or will changes in labor affect your processes? The same questions could be asked about accounting, pricing, growth, and other areas of your business.

If your company has redundant systems and you decide to upgrade to all-in-one construction software, there are many areas to consider including construction accounting.

Construction accounting manages hundreds of transactions, multiple cost codes and must be able to accommodate the requirements of that data. A generic or off-the-shelf accounting software program will not meet the long-term needs of construction.

Questions to consider About Construction Accounting

Is all your data across all projects connected to one platform? If not, how is all the data managed from multiple silos?
Does the software have the option to combine invoice registration and costing into a single-entry process?
Can the software auto convert and input hard copy invoices individually or in batches?
Is the accounting department aware of pricing changes, increased labour costs and market changes to material costs? If not, how long does it take for them to receive the data?
Does it eliminate the need for separate tax software by incorporating sales tax or withholding tax?
Do financial reports the CFO reviews have the most current information?

Advantages of Construction Management Software

Construction companies focus on accounting, productivity, efficiencies, scheduling and financials all at once. The goal should be to have one construction platform that connects all data, manages all business processes and can be used by the entire workforce.   

A construction business can buy off-the-shelf software, but it would most likely require customisation by a third party or IT Department, which adds costs, causes delays and most likely will not meet all business requirements. This type of software will also not scale as your company grows. It is important to understand how the software can manage project expansion and growth.

Will the software be able to accommodate new volumes and new processes, and can it manage new licenses? How much will it cost your company to make those adjustments, and how frequently will the process take place? If your solution provider cannot seamlessly upgrade the software to adapt to your company’s growth, will it cause project delays?

Other areas to consider include storing electronic files. How much storage can the software manage for Document Management? Can you add drawings, photographs and site notes from anywhere? How often are the files backed up?

Real-time Construction Data

Construction companies benefit from real-time data because it is a single source of truth and allows them to be proactive, to manage costs as they occur and reduce risk. Construction management software with real-time analytics provides useful insights into trends and performance.

When all stakeholders have access to the same data, there is no need for guesswork. Whether on-site or in the office, decisions can be made from anywhere and communicated in seconds.

When paper is replaced by digital data and processes are standardised, it becomes easier to manage costs, budgets, resources and projects on a day-to-day basis.

Construction Management Software Transforms Productivity

Construction software is designed to organise data, create efficiencies by automating key processes, provide greater transparency and reduce risk. Incremental improvements to productivity can reduce delays and improve project margins.

Construction software does not require the use of email, phone, text, or external data silos to manage or process data. The software can create efficiencies and reduce operational costs specifically in areas such as resource allocation and remote time collection.

Resource allocation is a critical component for growth, and the goal is to assign the best available resources based on availability. Construction software helps supervisors assign people to the right task and ensures using the right skills in specific areas.

When resources are properly allocated then team members do not feel overwhelmed or overworked. Construction software also helps reduce errors such as overscheduling which helps prevent burnout.

Scheduling labour is more effective when you know who is available and where people are working, and you can track costs in real-time. Project managers can be more proactive to project changes when they have access to real-time data.

Remote time collection used to be a paper-driven, field-to-office process that often had data errors that led to additional administrative time and costs. Today, remote time collection is captured, approved and submitted on a mobile app.

The app enables the supervisor to manage and assign crews, and view who is working, at lunch, or is absent in real-time. Supervisors can bulk approve timesheets on a mobile app and do not have to scan or email to payroll. If there are exceptions, they will be flagged and remain unsubmitted until the issue is resolved.

From the Field to the Office

Multiple factors can impact a project, and construction technology closes the information gap by improving communication and collaboration. Access to documents such as change orders, budgets, job costs, inventory, and equipment helps construction companies manage costs that could negatively impact a project.

Knowing project costs from an accounting perspective helps reduce risk and ensure that you are effectively monitoring project workflows to identify areas where you can reduce your project and operational costs.

Automated processes seamlessly connect field data to the back office and everywhere in between. Accounting and payroll do not have to rely on manual processes to receive or process data because data from the field is available in real time.

Financial reporting is also simplified because all the data is connected within one unified platform. Risk is therefore reduced as costs are known in real-time and allocated resources and labour can be adjusted accordingly.

Change Orders

Change orders may require additional labour, material and equipment and that can increase project costs, cause delays and interrupt project milestones. Change orders such as material substitutions, errors and omissions and labor shortages can have a big impact on a construction project.

In some cases, a labour shortage may even force a company to hire workers at a higher hourly rate and that can affect margins.

Project managers frequently log change orders and need the ability to add new change orders to a project. They also need to be able to define the type of change order, and be able to view costs from a revenue perspective.

Job Costing

Job costing has a simple formula [material + labour + overhead = Total Job Cost]. However, it is a complex task to assign and track every cost of a project and to identify issues that could impact margins.

Job costing is a granular way to view costs at all levels of a project. Every expense must be assigned to one of the areas (labour, material or overhead) of a project. If labour costs increase, it is important for the project manager to monitor so those costs do not affect cash flow or project margins.

Construction software with built-in financial management components simplifies the process of assigning expenses when they change. The software also makes it easy to find cost overruns and identify trends to make necessary improvements. The benefit of job costing within construction software is that problems are easy to identify.

Material costs can be impacted by market forces, weather conditions or even from a pandemic. The COVID-19 pandemic created a supply shortage of processed wood which resulted in an almost four-fold increase in prices. Project managers must be aware of this type of cost increase, so they measure costs against the budget to keep a project on track.

Reporting and Dashboards

Dashboards and reports should be user-defined and configurable to fit your business processes and functional groups. The Accounting dashboard and reports should be specific to that functional group, just as Project Management should be specific to those users.

Reduce Operational Costs With Cloud-Hosted Construction Software

Cloud-hosted construction software ensures that construction companies can manage the entire construction lifecycle on one platform from start to completion.

Construction cloud software is a powerful solution that enables construction companies, their subcontractors, suppliers and workforce – to work better together on-site, off-site, on the road and in the office.

Cloud-based construction software, such as Coins Construction Cloud, provides secure access to a single source of data with seamless connectivity from anywhere. Automated workflows reduce paperwork and redundant processes to increase efficiency, accuracy and reporting.

Reasons Construction Companies Choose Coins Construction Cloud Software

Coins Construction Cloud is an industry-leading construction management software company providing end-to-end business solutions to the construction, engineering, utility, and service sectors. Coins all-in-one construction software and mobile solutions provide seamless connectivity and collaborative tools to manage all business processes and the construction lifecycle on one platform.

Coins construction software connects data in real-time on mobile, tablet, and desktop. The comprehensive ERP software also works in partnership with customers to manage risk, automate processes, reduce operational costs, and guide informed decision-making using real-time data.

Coins software is already used by some of the largest mechanical, electrical, utility and specialty contractors to run their business, from opportunity to job costing, project management, service management, financials and more.