A project manager is defined by their ability to control project costs and ensure it aligns with the project plan. But rising complexities in the construction industry with designs, ESG laws, and market trends make it a challenge to complete projects within the budget
Most of these challenges involve decision-making – and it’s better to decide based on data. For this, equipping your project managers with software helps capture, track, and analyze data to make project budget decisions.
In this article, we explore how construction management software aids project managers in tackling resource allocation and cost control challenges in construction projects.
Construction management software — what it is and how it aids cost control
Construction management software is a specialized tool to streamline project execution and automate manual tasks involved in them. For example, you can automate the scheduling and dispatching of field service teams automatically based on project schedule and on-ground job progress data.
Features to look for in construction management software to control project costs
Here are 5 key features your construction management software vendor should provide:
- Sync and track inventory stock: helps you understand material and equipment availability and determine how many jobs one can do based on the stock. It helps accept the demand or match up to the demand according to the resource available.
- Integration with software: your business may be using spreadsheets or different accounting software before adopting dedicated construction software. Ensure it allows integration with other tools to send or receive data and avoid past data loss.
- Asset management: track preventive maintenance cycles for equipment or other administrative devices. It assigns resources as per job requirements and avoids benching them.
- Automated invoicing: when a job is completed, it will create an invoice and automatically send it to the recipient. The software should have a digital payments feature to seamlessly collect amounts and update the invoice status.
- Forecasting and predictive analytics: analyzes customer, payments, workforce productivity, and project data to determine deviation from planned budget versus execution. It also should predict potential profits or losses based on past project data.
How does construction management software streamline resource allocation to control costs?
Construction management software helps project managers gain visibility into the way a budget is being spent versus the outcome achieved with it. Here’s how it helps them ensure project completion within the assigned budget:
Accurate cost estimation
For a high-stake industry like construction – it is important to use the right estimates for determining the project budget. These things may take time, and construction management software helps speed up the estimation process using templates and automation. It helps access past successful projects and the latest market data to determine accurate costs.
Managing project changes
The cost of certain materials may increase due to market volatility. To ensure the project budget doesn’t overshoot, a manager has to make a quick call to choose other vendors or materials as necessary. Such project changes are common, and handling them with good response time is important to avoid a domino effect on the scheduled jobs.
Track costs real-time
Construction management software helps track project progress and the costs involved in executing them in real-time. It will determine deviations in the budget so that the project manager takes necessary actions. For example, it can track the productive time spent by labor and determine the worker payments accordingly. This helps in fair compensation and avoids any compliance issues.
Having access to critical documents at the right time is necessary to control costs. Construction management software helps store and restrict access to documents like permits, invoices, contracts, construction drawings, etc. For example, a government official may conduct a surprise check and may demand necessary permits be taken. Your workers may have to show the same to carry on the work – or they may halt work till it is shown. This delays projects and increases compliance scrutiny by officials.
Implement efficient resource allocation with construction management software
Zuper uses artificial intelligence to enable your construction business with predictive analytics and generative AI for managing project costs. With dedicated inventory management and financial tools – you can improve business profitability and project success. Book a demo today to know how Zuper can integrate with your existing resource allocation efforts.