Construction is an expensive business, or is it so? Not when the construction operations and other daily routine are seamlessly integrated with Lean principles using construction management software. What’s that? A construction project management software or better known as construction ERP software is a digital tool to streamline, simplify, standardize, integrate, automate, the construction workflow process, operations, workforce, and the resources to seamlessly manage the entire life-cycle of the construction projects from start to finish.
One of the most important features of any good construction management software is to identify and eliminate the factors responsible for the overexploitation of a construction project’s budget. It is beneficial to the contractor not just in the front of cost savings and increased revenue, but also it brings to attention the weak areas in the construction workflow process that need special attention.
Did you know that Equipment and Materials consume almost 50% of the allotted budget? This is mainly because of excess pilferage, improper preventive and corrective maintenance, no clarity on timely distribution of materials, improper log entries, and many others. With Tactive construction ERP software in place, the entire Equipment and Inventory management processes are automated and unified with every other wing of the construction company to enable transmission of data from one end to the other in real-time.
Also Manage Plant, Machinery and Heavy Equipment Usage Logs, Implement Cost Centres for Internal Hires, Do Preventive and Corrective Maintenance Works among many others using Tactive construction management software. Automating the Equipment and Inventory management processes helps contractors save around 3.5% of their allocated budget.
The other key area of concern for modern contractors and construction project managers is the Overheads, which is nothing but the expense incurred to run the daily operations of any business. Construction goes without saying has a vast number of operations that are running simultaneously at multiple locations. This calls for attention towards a digital platform that is also smart (Business Intelligence) to have complete visibility and control over all the construction projects in real-time from anywhere in the world.
Tactive construction ERP software is built with both Lean principles and BI that enables the end-user to make smart decisions in no time. This way the contractor ends up saving another 1% of the allocated budget.
The problem is just not over yet. There is this one other important factor that has to be taken care of, meaning automated and integrated with a central database to achieve optimum coordination and cost savings. It’s non-other than the Labour billing mechanism that drives if not all, most quantity surveyors and project managers crazy. Normally, payments were made by cash; which required cash-in-transit. This posed a major risk of cash loss. Using Tactive construction management software, labour rates can be defined based on the nature/difficulty of the work and the skills involved. They are considered based on the job [labours are assigned for particular job/work based on the BOQ] or based on Non-Muster Role (NMR) [labours are assigned for specific jobs such as painting, plumbing, transportation, lift operation, welding, and so on]. This helps contractors save an additional 1.5% of the budgeted capital.
These costs combined comes to 6% of the total capital planned for the execution of a construction project. Tactive Construction ERP Software that works on the LEAN principles enables the contractors and project managers to make informed decisions on the judicious use and allocation of their resources to make room for some extra money by cutting down the operational costs.
Take a free DEMO of Tactive construction management software to find if it’s a good fit for your construction business. We’re confident our product will beat your conventional spreadsheet system of operating and help you increase efficiency and grow your business at a fraction of the cost.