The population of the world’s urban areas is increasing by 200,000 people per day. The need for housing and shelter facilities can not be ignored. It’s not just housing but also the demand for a workspace, office building for these people to work in and the subsequent demands that drive further construction is not to be taken lightly.
This blog discusses the difference between using the construction ERP software and following the conventional construction management techniques that involve pen and paper, excel, word, etc in driving overall productivity and controlling expenditure.
Construction Management Software
The construction management software simplifies, streamline, standardises the construction workflow process, operations, and the workforce. This is done by first switching the organisation from the manual to the digital mode for automation. Once all the processes right from bid evaluation to machinery and equipment usage logs, maintenance and internal/external hires are digitized, it becomes easy for the project manager to have a birds-eye view of the entire workflow process.
This allows the regional managers to 24/7 real-time visibility and control over multiple projects in a single unified digital platform. Multiple studies have shown that using construction ERP software has helped construction companies save a ton of money that would have otherwise seeped out of the purse in the form of pilferages, duplication of work, overutilization of resources, improper tracking of labour wages, discrepancies in salary disbursements, and many others.
A construction management software provides real-time visibility and control over project budgets & actual spending, subcontractors, equipment, materials, labour costs, project finance status (Bank Guarantees, Letters of Credit, Overdraft status), project & Office overheads and accounts with custom approvals and mobile analytics dashboards. One can also perform multiple complex tasks without sweating them out like for eg:
- Control Cost of each Project based on pre-planned budget and schedules
- Project-wise Profitability, Progress and Resource usage
- Approvals and Dashboards on Mobile & Web
- Front-line & site worker data entry through Android / iOS Mobile App
- Drill down reports to the last level, etc…
Over 90 – 95% of contractors/customers have reported significant savings and an increase in productivity by around 28-31%, which is quite a leap in the construction arena. Using construction project management software, paper trails are reduced significantly and the end-users can iron out construction management flaws and increase the final output by many folds.
Conventional Construction Management Processes
In this traditional method of managing the construction workflow process, there is no real-time data transmission from one point of constant to the other. No automation leads to difficulties and errors in accomplishing tasks. As there is no proper planning and scheduling of tasks and resources, the high attrition rate among employees and pilferages in materials and other key resources are inevitable.
A study has found that 90% of the construction companies using the conventional way of doing business report delayed execution of projects while also incurring cost overruns. This is mainly contributed by the fact that ease of doing business is not taken into account.
As there is no digitization happening, real-time visibility of all projects are not possible which makes the contractor stick with just one project at a time. Moreover, the humongous paper trails lead to chaos and mismatch of data entry due to human intervention.
Compared to many other industries, the construction industry has traditionally been slow at technological development. It has undergone no major disruptive changes; it has not widely applied advances in processes such as the “lean” construction process. All these factors indicate the strong need and the time that is ripe for contractors to grow big in the future. Resisting change is no longer an option for the contractors.
For more information and updates on construction management software/ERP, take a free DEMO of construction ERP software from Tactive.