For many employees, there’s a certain comfort in doing things the traditional way. It doesn’t matter if this is a tedious and time-consuming process — knowing exactly how you’re going to go about day at work is reassuring. In fact, according to JB Knowledge, nearly 32% of construction companies say they haven’t explored new technology due to employee hesitation.
However, setting aside apprehension for new technology and taking the time to train and familiarize your team with everything it has to offer can prove to be very beneficial for any organization. At the end of the day, if your goal is to boost your company’s profitability, you need to find ways to improve the current processes within the organization.
For construction businesses, this is where construction management software (CMS) comes in. Here’s how CMS can help ensure that every facet of your company is operating efficiently to ultimately improve your bottom line:
1. CMS can help improve cost control and budgets
Healthy profit margins are gained when businesses are able to keep their overhead costs low. That’s one aspect of the business that CMS can help with.
An automated platform can track and monitor everything from equipment, to documentation, and even manage scheduling. With a CMS, you can make sure that you’re using available resources efficiently during the course of a project. Monitor budgets versus actual spending in real-time via WIP or Job Status reports. From there, gain insight into how current expenditures will impact cash flow down the line and affect profit margins when the project is completed.
2. CMS offers real-time insight to make more informed project decisions
Growing your revenue requires an understanding of the various levers and dials responsible for driving the success of your organization. This can also help you identify the areas that need to be optimized for improving efficiency.
For example, did you know that in the US, rework caused by poor document control can cost companies up to $4.2 billion a year? If your company currently suffers from poor documentation and filing practices, then you could be losing out on a lot of potential profit.
With a reliable CMS in place, you can easily gain insight into what aspects of your business are actually helping boost your profits. It can help analyze areas of the business you need to optimize, draw focus on top performing employees; or adjust areas of the business that are underperforming.
3. CMS can boost project visibility and transparency
Many construction teams struggle with open communication and transparency. This particular challenge can be traced back to the fact that construction is an industry that requires multiple teams in geographically displaced locations to work simultaneously with complete efficiency. In most cases, keeping everyone in the loop with an email or a text message isn’t enough.
Such methods of communicating are prone to errors and inconsistency, especially for larger projects, and can be costly to fix.
Using a CMS to help streamline everything in a centralized platform means everyone critical to the success of a project has access to the data they need. It ensures everyone is on the same page and engaged with the project in real-time.
With this kind of transparency, you’re empowering team members to exert better control over a particular project and reduce exposure to common construction risks. More importantly, it maximizes the opportunity for profit while ensuring the success of your project.
The Bottom Line
The evolving demands of business today is prompting a shift in the way employees work. With the right CMS in place, you can make a major contribution to your organization’s net revenue.
If you would like to streamline your construction business operations by using a construction management software, contact PASKR today and find out how we can help.