Construction Asset Management Is the Game Changer

Managing a construction company is not a piece of cake, and people who own upper-management positions know it for sure. On the one hand it is required to maximise the project’s quality, lower the expenses, and minimise delivery time, but on the other hand it is expected to have a complete overview of the whole company, monitor its profitability, efficiency, brand image and financial health.

How to deal with all these challenges 24/7? Moreover, how to take care of business management but not lose sight of the individual project’s needs when we cannot control everything simultaneously? Well, we might have a solution for that, a game changer for your business!

Project Management is not Enough

If you are an owner of a small business and your company executes only a few projects at a time, focusing on your project management will probably be the right strategy. However, if you manage different teams, distinctive budgets or various equipment, it is time to reconsider your approach.

Many managers from the upper management level make the same mistake. They focus on monitoring each project’s health separately while forgetting to look at their company from a bigger perspective.

In the short term, such a strategy might work as you concentrate on one project and enhance its delivery. However, in the long term, when a risk occurs to any of your processes, it is much harder to react faster and make essential changes without risking the completion of others.

Do you wonder why? Check out our whole article that explains why focusing only on Project Management is not a good solution for more prominent companies.
Read the whole article here!

Asset Management in Construction - What is it?

So what does your company need if project management is not enough? Even though big companies have a more visible division of processes in separate departments, it is crucial not to lose the complete overview of the company. To succeed, apart from taking care of your projects, you should also devote some time for business management with a different approach to your assets.

What do we mean by a different approach to assets? First, you should not treat them as permanent, impossible to move between projects. Also, you should monitor their use and adapt it to your company’s needs at a particular moment. However, the most important thing is to realise how critical proper construction equipment asset management is for your company’s success!

Main Assets in a Construction Company

• 01

  People
  Of course, your employees per se cannot be assets of your company. However, their skills, competencies, working times, approach, ideas and suggestions are! So do not repeat the mistake of most managers! Even though assets such as knowledge, experience or motivation are intangible, you can and should manage them!
  
  Firstly, to better manage your employees' assets, you should ensure streamlined information flow inside your company. Having a golden thread that connects your project level with upper management gives you the possibility of knowing what is going on in each process. Also, you should have a clear view of your workers' schedules to respond more quickly if any risk occurs and you need to move them from one project to another.

• 02

  Equipment
  Most companies do not have separate machines for each project. That is why it is so important to look at asset management holistically. Especially as when it comes to equipment and machinery, there is always a chance of a sudden error or breakdown.
  
  To manage your equipment more effectively, you need to ensure a clear view of their occupancy. Thanks to having all the data in one place, you can move machines from one process to another, without risking any delays. We might be repeating ourselves, but if you want to take maximum advantage of your equipment, you need to look at it from a business management perspective.

• 03

  Money
  Money is the most problematic asset, isn’t it? If you are working with a strict budget, you cannot increase your financial resources or move money from one project to another. You have limited possibilities of managing your money, but even so, your financial situation is the most crucial factor indicating the company's profitability and stability.
  
  So, why did we put it on this list if you cannot increase it, decrease it or move it from project to project like other assets? The vital part of asset management in construction is monitoring and contact control. To manage your money successfully, you should be able to check the up-to-date financial situation (of specific projects and the whole company) anytime you need. Another part of control is a prognosis of predicted losses and profits, which can help you plan your future activities.

• 04

  Materials
  Last but not least, the materials for your projects. Among these four assets, materials are often considered as most related to a specific investment. Well, it should be the opposite! In construction, materials are usually ordered in excess. This gives you an excellent opportunity to use the leftovers in the following projects. It is beneficial for both your company and environment.
  
  However, to use materials in future processes, you need to manage them correctly from the very beginning. That is why in your business management, you should take care of your procurement. The process should be streamlined, transparent and easy to control at each stage, thanks to which you will be able to respond fast to the current needs of your company.

Put All The Pieces in The Right Places

You identified the main assets in your company, and now you feel ready to manage them. However, there is still one more aspect left and actually, it’s the hardest one. Namely, putting all the pieces in the right places!

You might now be wondering: How without spending hours on calculations and monitoring each project can I identify my company's pain points and needs? Well, it is time to take advantage of the world we live in - the world of technology!

Construction asset management software could be helpful here: it combines project and business management together, giving you a possibility to work on up-to-date information and manage your assets faster and more efficiently.

Curious to learn more? Check out how you can put all your construction pieces in the right places!
Discover Construction Asset Management Software!

Need Support in Managing All The Assets in Your Company?

Many managers tend to stick to well-known solutions that result in average effects rather than implement something new that can level up their business. However, if you want your company to stand out on the market, you should always seek better management approaches and modern tools that can support you in it.

That is why you should consider implementing construction equipment asset management in your company. It might be a challenge at first, but only treating your assets as a whole allows you to understand and respond to your company’s needs.

Curious to learn more? Do you want to check how our construction management platform and asset management can help your company? Schedule a demo with us and discover all Archdesk’s features!

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