Articles
Executing Projects Profitably From Start to Finish
The days of managing construction projects with just a job folder and gut instinct are long gone. Contractors today must leverage software to operate efficiently and remain competitive. However, obstacles to optimized processes and profitability remain for contractors using a variety of applications that don’t properly connect and communicate with one another.
Using multiple software programs creates silos throughout a company, resulting in duplication of effort and hindered communications, among other issues. To manage everything from takeoffs, estimates and project management to financials and inventory, construction businesses should consider implementing one complete software solution that handles all aspects of a project. This end-to-end software helps contractors effectively manage projects (and the overall business).
Complete construction management solutions allow control of critical business operations and seamless workflow across departments. Furthermore, features for mobile devices provide easy access to real-time job information from any location. Not only does this help improve efficiency, but owners and project managers have decision-making details at their fingertips to maximize profitability on every project.
The Starting Line: The Takeoff and Estimate
By performing a digital takeoff and then using that data (along with the software’s labor and materials costs database) to create the estimate, a contractor saves significant time and increases accuracy. Managing subcontractor bids and supplier quotes within the same solution saves the contractor time and money when developing its bids, translating to more bids in less time.
When bid day arrives, having the capability to create “what-if” scenarios and different versions of the same estimate helps the contractor make quick adjustments and better negotiate a contract to win the work.
Additionally, having the estimate data in the system is extremely valuable for developing future bids. A seamless solution allows contractors to track estimates and proposals by win/loss or by each individual estimator—gaining better insight into what the company does best.
The Race: Managing the Project
Once the contract is awarded, all takeoff, estimating and bid day information can be found in one place and then used to develop a project schedule and resource plan for successfully completing the job on time and on budget. Resource planning and milestone dates for phase completion are critical. The project manager needs to know who will be available, what pieces of equipment have been assigned and when materials will arrive, as well as ensure that deadlines are being met.
As the contractor dives deeper into the project and needs to process purchase orders and change orders, the ability to electronically create, track and manage these documents through completion is essential. When not tracked, changes can be a cost burden to the contractor. In other cases, contractors rely on change orders to make the project profitable because the original estimate was too low to cover expenses. By using a complete solution, contractors can see improvements in their approval process, capitalize on job opportunities and save money on potentially costly mistakes.
Project managers will make or break a job based on their ability to deal with myriad details. By automating tasks and making it easy to access data anytime and anywhere, a complete construction management solution takes the guesswork out of project management.
The Finish Line: Making a Profit
It no longer makes sense (or cents) for contractors to manage their operations manually or to use multiple software products. Such methods have costly limitations and create obstacles for team members to work together. By using a single solution to access all pertinent project-related information, construction businesses are equipped to manage the entire project life cycle—from the planning and job initialization phases through the final punch list items.
With end-to-end business management solutions, contractors can gain better visibility into every project, easily spot discrepancies and errors, hone their business strategy, improve cash flow and keep financials in the black with accurate return on investment.
Jim Flynn is president and CEO of Maxwell Systems, King of Prussia, Pa. For more information, call (800) 688-8226, email jflynn@maxwellsystems.com or visit www.maxwellsystems.com.

