It is no secret that construction and real estate development projects are complex. With dozens of trades involved simultaneously, construction and development projects require as much coordination and collaboration as any other industry we know. However, unlike many other industries, the construction industry lacks effective and affordable technological solutions to help manage and coordinate these projects.
More often than not, project managers are left with no other option other than outdated technologies like Excel Spreadsheets and emails. Companies that do implement more industry-specific tools like MS Project for scheduling or Raken for daily reports, end up juggling many different licenses and subscriptions in an attempt to manage one project. With the capabilities of modern technologies, neither of these alternatives is ideal, efficient, and in many cases cost-effective.
In recent years, however, cloud-based project management solutions like Procore and Oracle’s Primavera have become more popular. Construction and RE development companies that look to grow and take on more projects understand that it is nearly impossible to do so without project management solutions. This rush of companies transitioning from outdated technologies to construction management solutions is driving the construction management technology sector. Here are ten other reasons the construction management technology sector has been growing significantly in recent years:
- Stand out in bids and win more projects
Have you ever heard of an owner asking a contractor if they use Procore or any other project management solution? I have, more than once. It is becoming more evident that companies that fall behind on technology and lack integrated construction management technologies will lose projects just on this fact alone. In many cases, these solutions can act as an early filter when selecting bids.
2. Construction methods are improving
Modular systems, pre-cast superstructures, and 3D-printed buildings are just a few examples of how advanced construction methods assist in reducing project costs by speeding up the design and execution of projects. To keep up with the fast pace of these projects, project managers are left with no other choice than to utilize construction management technology.
3. Construction standards are higher
Quality and safety come with precision and coordination. As owners and local building departments demand better quality and safety, managing projects becomes more complicated. Integrated construction management solutions help construction managers monitor site activity, maintain project schedules and budgets, track submittals, and much more.
4. Taking on multiple projects simultaneously
Scaling a company requires tools that are scalable. In today’s day and age, where we are all heavily dependent on technology. RE developers and construction professionals need construction management solutions to stay on top of multiple design teams, contractors, and other entities involved in a project. With all the technology available at our fingertips, using emails and Excel Spreadsheets to manage cash flow, teams, schedules, budgets, and more, is no way to grow a company.
5. Rise in real estate prices
Construction and RE development have always been risky, yet awarding, businesses. Now more than ever, as real estate prices around the world keep rising, so does the risk. Industry professionals are using cloud-based construction management software to minimize risk by saving costs by reducing the number of different products needed to manage one project. In addition to direct cost savings, robust solutions can generate an in-depth analysis of project progress that helps managers make better decisions.
6. Building Information Modeling (BIM)
BIM is becoming ever more popular by the day, and rightfully so. BIM products allow designers, contractors, and drafters all work on one shared model which helps avoid conflicts on-site and expedite many submittal requirements. Some public projects even require that the project be designed in BIM and that all parties involved must work off the BIM model. Many integrated construction management products have integrations with BIM products, making these solutions almost a necessity when working with BIM models.
7. Efficient use of time
Have you ever had someone tell you to resend an email you’ve already resent many times? How many times have copied and pasted the same file or Excel formula? Integrated construction management solutions cut out all these wasteful mini-tasks and allow professionals to spend more time doing what they are supposed to be doing. Typically, every project member can log into a portal and view tasks assigned to them, navigate through shared project files, and much more.
8. Complexity requires much collaboration
Simply put, construction is never simple. In many cases, especially in larger construction and development projects, having one platform for all project members to collaborate anywhere from their office to the site is the only way to go. Project management and administration become a lot simpler with the use of integrated construction management solutions to schedule and coordinate deliveries, issue, and track RFIs and submittals, and pretty much everything else that makes one project so complex.
9. Accountability and responsibility
Integrated construction management software makes it easy for project managers to delegate responsibilities and tasks. With features like user-level permissions and tools that range from budgeting to punch lists, project managers can effortlessly assign tasks to the right people and monitor productivity.
10. Even when it’s not about the money, it’s about the money
These technologies will save you money. Some of them can even expedite payments to better your cash flow. They reduce response times for critical items like RFI’s, change orders, bid requests, shop drawings, and more. At times, integrated construction management solutions will make you feel as if they’re running the projects on their own. They send reminders on due dates, generate reports, compare bids, and extract information from other user input; all things that will save you and everyone else in the project time. And I don’t need to tell you what they say about time and money.
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