Any construction firm can have multiple projects going on at one time and each of those has multiple moving parts. You’re coordinating subcontractors, employees, client demands, and materials deliveries… there are a lot of things in the mix that can cause budgets to get blown and projects to take longer than planned.
While technology has come online that can help reduce missteps and report project progress in real time, construction firms haven’t always been the earliest of adopters. According to studies related to project performance, 28% of contractors still use spreadsheets to track their job costs.
When you’re working with static numbers that need to be manually entered into a spreadsheet or other software, you can get caught after the fact realizing that costs are going in the wrong direction.
Manual systems also lead to keying errors that can cause you to order too many or too few materials for a project or cause billing mistakes that delay payments.
Knowing how to use the right technology for real-time job costing and in other facets of your project management can improve project outcomes, reduce costs and budget overruns, and simplify the entire construction planning process. That’s why many contracting companies will use IT partners, like Genuine Technology Group and our CIO as a service, to help them plan a smart technology strategy that will improve profitability and productivity.
Benefits of Real-Time Job Costing
Real-time job costing applications help keep all data related to a project, whether generated at the office or out in the field, in a single platform that is easily accessible from any location and from desktops and mobile devices alike.
They help contractors avoid the common reasons that project can go over budget, which include:
- Poor communication
- Duplication of efforts
- Poor allocation of resources
- Lack of foresight
- Vendor relationship issues
- Human error
Receiving project cost updates in real-time allow you to react faster and adjust as needed to reallocate resources or address a cost issue before it gets away from you.
Here are several advantages of using real-time job costing platforms.
Keeps All Information in One Place
If you’re not using a centralized system for managing project costs, you can end up with payment receipts in a spreadsheet on one computer, invoices due in the email inbox of another, and confusion all around as to what’s been paid and where your project budget is headed.
Real-time job costing software centralizes all information, so everyone knows just where to find it. Your team can easily scan in or enter job invoicing and payment details from the office or out in the field, so nothing gets accidentally left in an inbox that you’re unaware of.
Make Real-Time Decisions
Real-time information on your project costs and how much of your budget is left help you make quick decisions that can mitigate missed deadlines or cost overruns. Knowing immediately that one area of your project costs more than projected, can give you the time you need to look for other areas where those costs can be balanced out.
Being nimble and informed in real-time allows you to realize stronger bottom lines by keep projects on track.
Faster Workflows
Web-based platforms for job-costing allow anyone to enter in data from their computer or mobile device, so you don’t have the inefficiencies of having someone write something down while visiting a subcontractor, then needing to take that to another person in the office who then transfers it to the staff member responsible for keying it into a spreadsheet or accounting program.
Allowing your team to work in real-time and enter data simply that’s then instantly available to everyone else, reduces workloads and streamlines your workflows.
Data Analytics to Help You Make Smart Decisions
You can only get so much information from a manually created spreadsheet chart. Job-costing software includes data analytics tools with business intelligence that can analyze all the data related to your job and help you gain strategic insights by presenting it in comprehensive ways. They give you the information you need to analyze each area of your project and plan for higher efficiency in the future.
Reduce Keying Errors
Having to rekey data from one system into another or from a paper form into a spreadsheet not only is time-consuming it can also contribute to errors. Each time a number has to be transferred manually, there’s a chance a number will be transposed or a decimal point put in the wrong place.
Cloud-based platforms not only make it simple for everyone to access the system to reduce the need to rekey information, they can also integrate with other cloud solutions so data can be transferred automatically, for example from your job costing software to your accounting software. This eliminates error-rates and helps keep your numbers accurate.
Streamline Your Construction Projects with the Right Tools
Genuine Technology Group guides companies towards achieving their goals using technology as a tool to help them do more. We focus on you and your business first, then look at what types of platforms can make your job even easier.
Find out how you can save time and money with a custom IT solution. Call us at 971-288-0880 or reach us online today.