Mobility: The Key to Profitable Project Management

Construction management software combined with mobile devices empowers owners to make better decisions.

Sometimes, the most important lessons come when companies are challenged and pushed to their limits. In recent years, this has been a constant theme for construction businesses. During these tough times, construction business owners have realized they cannot survive by simply doing the best work or becoming the most well-known in the market. Instead, surviving in this market is determined by how well a business is managed through efficiency, insight into true numbers and the ability to gain a profit from every job.

New technological developments have enabled construction businesses to improve operational efficiencies both in the office and in the field. Contractors who have implemented software to perform digital takeoffs or replaced spreadsheets and off-the-shelf systems with true job cost accounting software have noticed a positive difference to their bottom line. Looking ahead, the technology landscape for the construction industry is becoming even more vibrant and accessible, as mobile devices, for example, become more affordable and applications are tailored to contractors’ unique needs.

In fact, combining the latest technology—mobile devices and all-in-one construction management software—is the key to profitable project management. A complete, end-to-end solution brings together all critical business applications into one system that can be used by all team members. By integrating this capability with mobile devices, more contractors are achieving seamless communication, improved productivity, real-time insight into activities and projects and maximized profitability.

Make the Most of Mobile Technology

Mobile technology has gained much ground in the construction marketplace, with interest and adoptions peaking as prices are dropping. Devices are generally more affordable than they used to be, and user-friendly applications are being tailored to the unique needs of construction. For example, a complete construction software solution with an iPad application allows contractors to access valuable information (such as plans, project budget and billing schedules, resource requirements, required forms, change orders, issues filed and their status and contact information). Often on the move, contractors can easily track the progress of projects, become more agile in the field and better account for all aspects of the job from beginning to end.

Contractors can eliminate the bulk and hassle of managing with traditional job folders or binders, which present an assortment of time-consuming challenges, including locating information, updating data and sharing project details.

Manage Change Orders to Increase Profits

One component of project management that is often critical to profitability, yet frequently forgotten or overlooked, is change orders. Change orders are an excellent example of how mobile technology can enhance efficiency and effectiveness for contractors. For instance, a change to the scope of work impacts budgets, resources, scheduling and billing. Therefore, changes must be identified and managed very tightly to ensure they do not adversely affect project profitability.

Under a manual process, managing change orders is typically time-consuming and prone to errors and missed opportunities that negatively impact a company’s operation and financial health.

However, by accessing an all-in-one construction solution from a mobile device, contractors can easily track and manage change orders in real-time directly from the field—instead of in the office. A complete solution and its mobile component allows contractors to analyze, identify, estimate, budget, propose, execute and bill for the variety of changes that occur during project execution. This leads to additional profit.

Managing costs is just as critical as capturing additional profit. To do that, owners must focus on the details without spending countless hours poring over senseless, outdated data. Mobile end-to-end solutions enable contractors to stay on top of the small details, which ultimately can become very costly if not followed through effectively.

Implementing this technology can also automate the distribution of checklists and track an audit trail of what was completed and when. Project managers can use mobile devices while walking the jobsite and update information in real-time. Ultimately, by enhancing this process, contractors put more time back on the clock, and the project manager can do more profit-boosting work.

Likewise, the daily field report is also a crucial tool for owners. Using a manual process, contractors struggle to keep information updated and properly track labor and equipment time. But with mobile applications and an all-in-one construction management solution, they can easily record activity at a project site each day and capture specific data, such as labor and equipment use, in real-time to drive many accounting processes instead of waiting for the end-of-the-week timecards. This log can be used as a means to justify change orders, track receipt of materials, explain schedule delays, protect against back charges, and in a worst case scenario, serve as legal documents in case a contractor faces litigation.

Analyze Project Reports with Ease

When one project ends, owners need to measure and analyze their efforts to make improvements for the next project. Each new life cycle can be further optimized for the best possible profit.

Investing in a complete construction management solution will provide contractors with a single system for true end-to-end control of critical business operations, enabling them to efficiently and profitably handle the complexities of the entire project life cycle and gain an ever-important competitive edge.

Knowing the type of work, crews, suppliers, subcontractors, etc., that turns out the most profitable projects is critical to bidding the right jobs with the right price (and profit margin).

Contractors can use mobile devices to set a new pace for project execution—with rapid response to issues and confident decision making. The ease-of-use of these tools puts the power in the hands of the construction business owner.

$Cash Crunch: Business owners can accurately execute projects for the best profit possible with real-time data at their fingertips.

• The right numbers minimize costs and risks.
  Markup and margin are not the same, and if used improperly, contractors could price jobs incorrectly, establish false targets and repeat mistakes causing them to fall short of the anticipated profit. Simply selling more work (increasing volume) is not the solution.  If jobs are priced incorrectly, contractors will continue to lose money.  Instead, they need to develop a pricing strategy that will result in profit.
• Accessible, real-time data keeps projects moving.
  Business owners should keep a keen eye on materials, labor, equipment, budgets and schedules to ensure that anticipated profit targets are met and every opportunity for additional gains are pursued. With centralized, critical, real-time information at their fingertips, owners have convenient access to the necessary data and reports to see a day's profit potential at a glance, identify financial losses, spot discrepancies, and errors and manage projects with accurate information.
  

Jim Flynn is president and CEO of Maxwell Systems, Inc., headquartered in King of Prussia, Pa.  For more information on Maxwell Systems, visit www.maxwellsystems.com.