With the construction industry projected to grow 11.6 % in 2021, developers and contractors are increasingly searching for the right technological solutions to drive project efficiencies for construction activities. Shortening the construction lifecycle is critical to ensuring profitability, with many developers opting for construction project management software solutions.
These solutions help drive effective cost planning, procurement, and inventory management efficiencies, while standardizing construction processes for streamlined operations. Project managers gain comprehensive access to project progress and can track and monitor site work daily. Sophisticated construction project management software platforms enable users to create detailed cost plans, manage the tendering process, handle invoicing and payments, while also tracking project’s physical and financial progress.
Critical need for shortening the construction lifecycle
While construction and infrastructure projects are experiencing timeline overruns of close to 3.5 years on an average, real estate developers can experience an estimated 8-10 % of project cost rise for delays by six to nine months. There are several reasons why construction lifecycles are extended, including pre-construction delays, materials unavailability, workforce mismanagement, site delays, and changes in project scope. These parameters significantly impact project budgets, timelines, and quality, as firms expedite under-construction projects to limit overruns and eliminate bottlenecks. Developers are increasingly opting for end-to-end construction project management software solutions to address project lifecycle delays across their construction portfolio.
What is a construction project management software?
A construction project management software is an end-to-end technology solution that streamlines construction workflows for timely project completion. Project owners can create highly accurate cost plans and BOQs, streamline tendering processes, engage with suppliers seamlessly, and have complete control over project progress from a single unified cloud platform. They can gain real-time insights on site work, while leveraging advanced tools for on-site course correction at any time. Project management solutions also enhance team collaboration and communication, while standardizing processes for operational excellency.
costs represent a critical portion of construction budgets (60-70% in many cases), which is why delays in materials delivery, errors in handling & storage, issues in quality, and problems with workability, can extend construction lifecycles thereby creating cost overruns. Stakeholders can manage their inventory, optimize procurement, streamline material management, and eliminate silos by leveraging a robust construction management solution.
How construction project management software impacts construction lifecycles
For builders and developers, time is of the essence. Construction project management solutions bridge the gap between traditional and digital processes and workflows while enabling time and cost savings for construction projects.
Better cost planning for projects – Cost consultants can prepare highly detailed preliminary estimates based on the scope of the project and its site requirements. With the help of detailed area statements, integrated coefficients and line items based budget creation, accurate cost plans can be created at a much faster rate.
Streamlined forecasting of material demand – As materials play a vital role in construction work, project managers need to ensure that they are available when needed complying with outlined specifications. Project managers can forecast material demand across projects using the procurement and material management modules present within construction management software solution.
Digitizing the tendering process – Procurement teams can conduct online tenders that accurately capture bids and allows teams to analyse different vendors for sourcing efficiencies. The entire process is highly secure, with seamless communication for bid clarification and updating.
Effective material and store management – Construction project management solutions enable users to create detailed bill of materials, manage purchase order approvals & issuance seamlessly. This reduces manual errors, decreases administrative costs, and introduces greater transparency for end-to-end inventory management.
Real-time tracking of project progress – Through global dashboards and daily reports, project managers gain real-time updates on site progress, consumption, and other KPI-based parameters. Managers have complete visibility into construction work and can course correct when necessary.
Better collaboration for streamlined execution – With all processes and project data integrated into one platform, teams can seamlessly collaborate over project execution to ensure timely completion. Project plans, reports, and schedules can be easily reviewed by all users, which significantly reduces time and optimizes workforce productivity.
The right project management solution can significantly streamline construction workflows, while eliminating bottlenecks and enhancing productivity. Developers can increase project profitability, while reducing process risks that may arise throughout the lifecycle of the project. BuildSupply Real Estate and Construction ERP is a complete project management solution designed to optimize planning, procurement, consumption, monitoring, and progress management, thereby shortening construction lifecycles for quality-driven timely project delivery. It comes with various integrated modules on budgeting and estimation, procurement, inventory management and post award flows to serve all stages of EPC – Engineering, Procurement & Construction.