How to reduce risks through integrated construction management?
Changes in construction are a fairly common procedure. But each change of drawing, project, contractor, material, or volume makes adjustments to the budget and schedules. And these changes are not always positive. In addition, unexpected changes in construction can increase the risks for the project and the achievement of the final result. And such nuances have changes known to you, let alone force majeure situations that increase risks several times.
Large projects are especially exposed to risks and more difficult to overcome their consequences. This is why, given the asset class, projects are more likely to be 80% over budget and take 20% more time than originally planned.
So contractors reduce risk by using an integrated cost management solution. What is meant by this decision? This is a specific technology that should be used to manage the project and money. By using an integrated construction management solution, you will improve work efficiency and team coherence. Also, you can regularly control costs and, in the end, get the result as close as possible to that which was at the design stage.
Here are 3 ways to use integrated construction management software to help you mitigate risk as much as possible.
Improving team performance
The lack of communication and data exchange between the construction and accounting teams does not improve productivity but acts in the opposite direction. Such a large gap can be like a time bomb, because as a result of the planned budget, which is indicated in the accounting data, it may not be enough to carry out construction work and purchase quality materials.
Our goal, as professionals, is to improve team performance work so that they can complete the task efficiently, within budget, and on time.
Any changes to the project can be made available to team members and available for discussion. It is improving teamwork and project results.
If the accounting and design staff can communicate quickly and efficiently on the project, with access to up-to-date information, then cost overruns will be eliminated. Improving team performance at work helps to predict, monitor, and minimize any upcoming risks.
But how to combine all the information for comfortable access? An integrated construction management platform helps the team improve performance at work because all team members can work on the same page. Project managers will also have access to information contributed by employees from different departments and thus have a real-time visual overview of the current situation of the project.
In essence, improving team performance strategies that work to focus the productivity of the field and accounting teams on their functions in the project. Each group has access to accurate and up-to-date data and promptly makes changes to the current day.
Cost control in construction
To reduce project risks, it is very important to carry out construction cost control. So you can control the costs at each stage of the project. The best way to do this is to display costs for real-time analysis and use construction cost control software.
Cost control in construction can be divided into 4 segments: they are estimations, proposals, value schedules, and payments. By connecting 4 elements, you can achieve the effect when all interested parties move in the same direction. You will see the real risks of the project at the moment.
This is necessary so that, for example, the budgeting department can see the cost limits and compare these 2 indicators. The technology under consideration works to automate this cycle. Investing in cost control software in construction allows you to focus on the job, rather than constantly manually sending your share of the information to another interested party.
Make effective decisions
Effective forecasting allows stakeholders to communicate throughout the project.
A significant benefit of a well-integrated construction management technology is that it helps standardize forecasts and can create repeatable and verifiable processes.
If your construction management software and ERP systems are out of sync, then your company's projects are very risky. By integrating systems, you create convenience and comfortable conditions for project participants, getting the result that you planned at the initial stage. After all, this is how you do not overspend and can be sure that the project will not become unprofitable for you.