What Are the Benefits of Construction Management Software for Businesses?
Construction management software
According to McKinsey, construction projects take 20% longer to complete and are 80% over the budget. To solve these problems, companies are implementing construction management software. We will tell you what this solution is and how it helps businesses.
Typical reasons why construction projects fail
Construction is the largest sector of the world economy. It accounts for 13% of global GDP. But over the past 20 years, the annual productivity growth has been only a third of the overall economic average.
The ORCID research team has identified four main factors that make construction projects fail:
- Supply management. Construction projects are not successful due to delays in the supply of materials, design errors, and lack of resources.
- Labor management. Work is delayed due to a shortage of staff, unprofessional behavior of employees, and low productivity.
- Project management. Projects fail due to inefficient budget management, unclear planning, changes in the scope of work, and financial problems on the part of the customer.
- Climate conditions.
Construction management software solves some of these problems.
What is construction management software?
Construction management software is a tool that simplifies the management of construction projects. Such a program automates tasks and allows a company to manage its budget, stick to a set plan, communicate with contractors and customers, and much more.
Construction management software is needed by both large construction companies that perform numerous complex works, and firms that are looking for an IT solution to better organize their processes.
Functions of construction management software
Construction management software automates the following tasks:
1. Budget calculation.
When managers calculate a budget, they analyze how much equipment, materials, and workers are needed for a project. A construction management program systematizes cost accounting and allows calculating the cost of the project. Technology manages even complex transactions. It is easier for construction companies to control their budget, expenses, forecasts, and business processes.
2. Time planning.
The program fixes the schedule, which shows whether the pace of work corresponds to the plan. Visual planning tools bring office and construction teams together into a single project with a common schedule.
3. Collection and storage of data.
The program includes several interconnected modules: staff management, asset management, and financial reports. Thus, all project data is stored in one place.
4. Risk management.
Some platforms are based on machine learning technology, which relies on information about the project to assess possible risks. Technology warns of potential problems long before they appear. Automated tools check whether project conditions comply with the law.
5. Equipment control.
The program keeps records of the company’s permanent assets, temporary technologies and building materials, technical inspections, and equipment maintenance schedules. Thus, the organization sees weak points in resources and takes timely measures so that the project does not go beyond the budget and deadlines.
6. Communication between employees.
The platform connects customers, suppliers, and contractors and keeps the history of their communication.
Construction project management software is compatible with other corporate programs so that employees have access to documentation and the project can be managed remotely.
8. Construction document management.
Throughout the project, a lot of documents are drawn up. Thanks to construction management software, employees have access to templates for various documents and their current versions.
Key features of construction management software
Construction management programs have their own characteristics:
- Use of cloud technologies.
Such a program runs in the cloud and is available from any device. The software is automatically updated, and the cloud ensures that all participants receive the necessary up-to-date information on the project.
- Consolidation of all project participants in a single system.
The platform gives project participants access to the necessary information in accordance with their roles.
- The program is easy to use.
Project participants have different technical levels and knowledge. A construction management software solution provides employees with the information they need according to their roles in the project.
- Such software is customizable.
There are no identical projects. They have common features and standard reporting, but specifications and some operations are unique. Construction management software can be adapted and customized to work with different projects.
- The program complies with security requirements.
Cloud platform providers embed data security solutions into programs, for example, limited access to information depending on an employee’s role in the project.
Benefits of construction management software
Companies that use construction management software benefit in the following ways:
They save time and money. In its 2018 survey of the construction industry, the consulting firm FMI found that builders spend more than 14 hours a week on non-manufacturing tasks: a third of their time is spent on searching for project information, resolving disputes, correcting errors, and redoing work. Construction management software solves many of these problems.
Such software improves team communication. The cloud platform can be accessed from any device. Therefore, each project participant can use the software, even when they are on a construction site, and everyone works in a common environment with up-to-date data.
Construction management solutions improve the quality of projects. Such software ensures that all construction documents are drawn up correctly. Each employee has access to them according to their role. The program integrates with other systems: accounting, inventory software, and so on. It takes into account budget, team management, risk, planning, and communication. Thus, all stages of construction are clearly monitored.
How to implement construction management software
The following steps will help a company select an off-the-shelf program or decide how to create its own building solution.
Step 1. Analyze current instruments.
Before implementing a new program, you should analyze the company’s current tools to understand what functions are missing for working on projects. If the team uses several applications for different tasks, it is possible to replace them with one multifunctional platform. If there are applications that are required for operation, it is necessary to consider their integration with a construction management software solution.
Step 2. Choose an enterprise software development company.
If your business is unique and you want to include specific features in the program, consider developing your own construction management software. Experienced IT specialists will create a project according to the company’s business requirements so that the program brings as much value as possible.
How IT outsourcing companies can help your business
When companies cannot find the right turnkey solution and need unique features, IT outsourcing is the best choice. Custom software development is suitable for businesses of any size. A company can order any functions, integrate the new software with its systems, set up access, and implement an ML solution. Construction companies know the building process from the inside and can advise the development team and adjust the creation of the program so that the result is the most useful and convenient platform.
The global construction management software market is expected to grow by $630.5 million from 2021 to 2025. This means that more and more construction companies are trying to solve design problems with software solutions. More and more organizations are realizing the benefits of construction management software. Such a platform automates manual tasks, speeds up work, and reduces errors. Due to this, profits grow, and customers treat their construction partners better.