Construction Management Software - Greater Profits for Your Business

Author: michbravee | Posted: 16.01.2012

Like any other business, the construction industry also experiences the ups and downs of the economy. With a bad economy, financing for projects tends to dry up. In a flourishing economy, the jobs are plentiful. But no matter what the state of the economy, documentation becomes key and one of the most important tasks for ensuring profits is managing construction change orders. As changes occur, it's essential to quantify the scope of the change and to issue construction change orders in a format that meets certain requirements to optimize payment.

Unlike the early days of working on a hand shake, many contractors are now making use of construction management software to provide a template for best practices in documentation and to more effectively run their businesses. Converts say it minimizes paperwork and increases man power so you can do more work with less people. Larger companies, as well as smaller companies can equally benefit from the software because of the individual return on investment in time savings and a "one stop shop" for all documents. The days of file folders and project binders can now go by the wayside, with all documents related to a project being created and stored within the software.

It's estimated that construction companies in the U.S. spend 6.3 billion dollars per year manually processing paperwork. This translates to profits lost due to tracking down paperwork, re-creating it, and in many instances, having things fall through the cracks. When project personnel are busy doing work in the field, they often don't find the time to do the necessary paperwork to get paid. But if even one construction change order falls through the cracks, profits are being sacrificed for no reason, and the contractor ends up doing that work for free, or possibly settling for fifty cents on the dollar.

There are several benefits of using construction management software. Aside from the time savings and better project documentation for increased profits, contractors can also create an atmosphere of consistency in how they manage their projects. With templates, tracking procedures, and reminders built into the software, team members manage their projects according to standards set up by the company. If one project manager needs to pass the baton to another mid project, all information is safely stored and there are no gaps in the workflow. With construction management software, the level of professionalism and accountability is increased dramatically, which is then reflected in better job opportunities and increased profits.

It's one thing to be awarded the job. It's another to make a profit on it. Construction change orders, with proper management and proactive communication, can be a key factor in completing jobs that consistently make money. A small investment in construction management software can return large benefits in the long run.

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