With the accelerating rate of technological advances across the construction industry, it’s a natural expectation that contractors keep up with the times by utilizing technology in some form. Whether it’s using a basic spreadsheet to create accurate estimates or investing in a project management software that handles larger-scale projects, technology helps contractors execute successful projects with more ease.
Although the role of contractors hasn’t changed much since the onset of the digital age, the way in which contractors execute projects has changed from relying on manual documentation and tracking to more automated ways of carrying out project tasks. So in this article, we’ll explain the importance of tech, the risks of not using tech, and how contractors can embrace tech as the new way of doing construction.
The Risks of Not Using PM Software in Construction
Because of the detailed, ... nature of construction projects, the risks of not using dedicated construction project management software can mean over-budget projects, schedule slippage, and inaccurate financial data, all of which squeeze margins and hurt your bottom line.
Here are some common issues we’ve seen contractors encounter :
- Disconnected information
- Legal exposure
- Out-of–date schedules
- Out-of-date punch lists
- Room for financial error
- Miscommunication about important information
- Questions that never have an accurate answer
- Lack of organized systems
Our team has encountered countless stories from contractors all over the world who have experienced the severe consequences of not utilizing technology in today’s age. Many have lost out on tens of thousands of dollars by not documenting and tracking things like change orders because they were relying on their own ability to track finances rather than software.
Ultimately, what software like ConstructionOnline does is keep everyone on the same page and up to date on the most current information with a single source of truth.
The Benefits of Using PM Software in Construction
Utilizing technology like construction management software helps you widen profit margins, manage more productive teams, and finish more successful projects.
In a recent Dodge Construction Network, contractors who adopted project management software reported major benefits in their business operations:
- More than 50% of contractors experience improved communication and collaboration.
- 90% agree the software has enabled their teams to manage more capital projects.
- 76% report that project delays are reduced by 5 days or more on average.
- More than half of contractors see improved productivity and operational efficiency.
Some of the specific benefits many contractors experience include the following:
- Centralized and easily-accessible information
- Organized data and documents
- Up-to-date schedules and financial data
- Less human error when tracking finances
- Clear communication about crucial information
- Less ambiguity and confusion among your team
- Streamlined workflows and systems that boost your credibility
All in all, taking advantage of technology makes sure your team and clients know what they need to know when they need to know it, all of which help you to protect your bottom line.
Technological Advances That Fuel Construction Success
We’ve come a long way from the days of logging entire construction projects with pen and paper to the multitude of advancements we have now, and the timeline of construction advancements is only accelerating as general technological advances across the board are improving year by year.
Briq outlined a detailed timeline of tech in the construction industry all the way from the 19th century until today, but here is a summary of some of the more recent and relevant technological advances that have transformed the construction industry in the 21st century:
Cloud Computing
Cloud computing in cloud-based platforms gives contractors more centralized and secure storage of data, allows real-time collaboration, information requests, information sharing, and easy access from the field and office with different devices.
Cloud-based platforms like online project management software tools are typically how cloud computing is integrated into the construction industry. They offer a wide array of tools for better project management:
- Centralized communication
- Daily logging
- File and document storage
- Scheduling tools
- Instant messaging
- Location tracking on site
- Change order management
- Takeoff and estimating software
- Submittals and RFIs
- And more…
Tools like this make the multifaceted nature of contracting much more streamlined so that you can manage construction projects that are on time, on budget, and profitable.
Workflow Automations
Workflows are essential to contractors because they manage tasks and processes that must occur in a specific order. For instance, most construction companies have a process in place for managing leads for new projects; it may include putting in lead details like contact information, getting that information to the right team member on staff, calling the lead to get more information on project opportunities, and marking an opportunity as “Won” or “Lost”.
Whereas in previous decades contractors would’ve managed workflows by memory or using a Word document, today’s software tools allow you to automate those processes with little to no effort, so that you can spend valuable time on other things.
Check out some of ConstructionOnline’s workflows to learn how our software can help you better manage your company workflows, including project creation, lead tracking, estimate creation, change orders, client selections, and more.
Mobile Apps
In the same way that cloud-computing allows contractors to access important data from anywhere, mobile technologies allow better on-site communication and remote project management. This includes using mobile apps to perform many of the same tasks done on a desktop software, like managing change orders, updating client selections, creating Submittals and RFIs, uploading photos directly from the field, and more.
In the age where people do business on their phones more than ever, it’s important to keep up with the times by having access to mobile project management tools so that your project progress can keep up with an increasingly demanding industry.
AI Integration
More and more construction management software platforms use different AI integrations to streamline project management an delivery by automating processes, optimizing schedules, and detecting risks.
You can take a look at some of the best AI tools for construction project management outlined in this article.
Integrating Digital Tools Into Your Business
If you are a contractor who is skeptical about introducing digital tools into your business operations, you might enjoy reading our article 7 Essential Digital Construction Tools for Contractors which provides you with some basic and essential online tools that every contractor can find beneficial. Some of the recommendations are completely free so you can explore and integrate on a budget.
If you need some help figuring out how to integrate software into your construction business, try the following:
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Identify current processes that are done manually and/or inefficiently.
For instance, if your team currently uses spreadsheets to create project estimates and you're dissatisfied with the amount of time, complexity, and decentralized management it takes to create an accurate spreadsheet, that is a workflow you can identify as needing improvement.
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Research digital tools that were created to solve the workflow issues you're experiencing.
For instance, if you want to find an estimating software that centralizes all aspects of project estimates, search for "construction estimating software".
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Try it out and see what works.
Test out the software solutions you find and see if it fits the needs of your business.
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