Construction Tips, News & Best Practices
Do you consider your construction processes organised? Maybe, there is still space for improvements? Check out our article and discover four ideas to make your processes more organised, efficient and adapt them faster to the changes on the construction market!
Before you automatically say yes, take a second to really think about it! Most of the managers or company owners confirm at the beginning that their projects are well managed. But, they commit a widespread mistake by doing so. It is because almost all of them consider construction processes as actions connected to one specific project!
Your company is much more than just a single project in real life. You must add financial activities, employees’ management, documentation storage or overall communication between different teams. Also, even though most of the projects are profitable, if one of them fails, you might find yourself in a difficult situation, without general company management.
So, look at the same question again and consider all your construction processes, not only those related to the projects. Do you see some space for improvement? Are some of them pain points for your management tasks? Let’s find out together what the best solutions to solve them are!
Have you ever heard the statement that Every project is different? Well, we are not going to fight with this quote as, in some parts, every project requires an individual approach. However, when it comes to the beginning of an investment, most of the necessary actions to fulfil are the same.
That is why, before starting a new project, consider creating a universal to-do list with all aspects of the project that you and your team need to take care of. It might be a list of documents that need to be fulfilled beforehand, like CDM Regulations or the tools and equipment required for specific aspects of work.
Thanks to such a list, you do not have to wonder what needs to be done before each project. It might be helpful for your employees as well, who will be responsible for those processes as the company grows. It also allows you to clear your head and take care of other activities.
We will be very honest with you: Project Management is not enough. Imagine that there has been a storm recently, and due to this unpredictable situation, project A is delayed by a week. Four employees from project A should have already started working on project B but now, it is impossible. Project B will not even launch in the end, but you have already lost your cash flows as you purchased needed materials. You have not received any payment for project A either, but your employees are still waiting for their salaries. You lost your business. Was there any chance to save it?
Actually, there was! Unpredictable situations, such as difficult weather conditions, remote work or employee illness happen all the time. That is why it is crucial to react as soon as possible. The solution might be here from the assets’ perspective! It allows you to treat your company’s assets (like money, equipment and employees’ time) more flexibly and, as a result, adapt the company to the new challenges.
Read more: Construction Asset Management is the Game Changer.
How do you know if the project was successful? Do you base your evaluation only on the budget and project cost ratio? These two numbers are essential, but you need more than that to know how your project was coping. Why? If you want to control the processes from the company perspective, you need to know not only how much the project costs, but also which cost category was the highest, how much you need to pay to the suppliers, how much more you will receive from the client etc.
Thanks to that, you can really implement an asset-based approach and treat your company as a whole. With more detailed information, you can plan the upcoming payments for suppliers without losing financial liquidity in the meantime. Also, imagine recent delivery costs much higher due to the construction material cost crisis on the market. In that case, you can try to move the material surplus between different projects and, thanks to that, save additional money.
Check out the whole article dedicated to the challenge of keeping financial liquidity: Cashflow Management: Problems We Solve
Executing projects while managing assets and ensuring the company's financial stability is a big challenge. But you do not have to do it all by yourself! Luckily, we live in a world of technology, where digital solutions can support project delivery from the initial stages to the final handover! Construction management software that offers solutions tailored to your needs can be such support.
Are you already using some digital solutions in your company? Remember to review them regularly! Why? Some systems have a bad legacy, which means they do not update their solutions with time. Because of that, you might find out after some time that software that was supposed to have it all generates more problems than solutions.
Read more: Why Legacy Systems Are Bad for Your Company?
What do you think about these pieces of advice? Which points seem the hardest to implement in your construction company? We are aware that a change in perspective from a single project to the company level is not a piece of cake. However, it is the only way to provide the company’s financial stability and react fast to any changes. Proper digital solutions like Archesk Construction Management Platform can support you in the process. Find out on your own how our solutions can help you overcome construction challenges!
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