No Spooky Surprises: Capitalize on the Insights in Your Data
No Spooky Surprises: Capitalize on the Insights Hidden in Your Data
Trick or treating might be about candy and scares, but when it comes to construction data, it should always be a treat.
It’s time to trick or treat! To avoid being tricked, treat yourself to the most favorable outcome by utilizing your construction data. Even if your data has been underutilized, it is never too late to get scattered pieces of information together and make the data work for you.
In this era of digitalization, more and more companies are deploying analytics to gain insight on how to improve their situation. Those hesitant to make a move towards acquiring an analytical tool, also risk the possibility of lagging behind their successful competitors who use analytics to build on the hidden data gems.
Is this project worth bidding on?
Rumor has it, a long time ago contractors spent hours upon hours gathering data from multiple spreadsheets and different systems. This often resulted in incorrect estimates, under budgeted projects and negative margins. Today, there are tools like ProNovos Analytics that give contractors an analytical solution to forecast the project outcome. These tools can help eliminate potential risks in relation to a future or a current project. And yet, some contractors are still struggling.
“Approximately” is a dangerous word in construction.
It would be convenient if accounting labor cost was as easy as multiplying the number of people in the field by 40 hours/week and their hourly wage. However, it is not that straight forward. Workers salaries vary, you have to plan for taxes, health insurance, overtime, training and scheduled vacation days.
And what about the weather?
Crews productivity can be different in summer months vs. winter months. Not taking all of those into account will make a significant damage to the company’s profitability. With today’s increased labor and material costs, contractors are dealing with tighter margins. Thus, misjudging the cost by the smallest amount could turn the project to a disastrous money-waster.
On the other hand, adding a “safety cushion” to protect yourself from unexpected expenses might result in the loss of the contract and could impact your bonding capability. In the industry with win rates of barely 15 to 25 percent, it is a dangerous game for a construction company, especially a small-sized one to play. The key to profitability lies in producing an accurate estimate that considers all of the variables associated with: labor, material, equipment expenses, as well as accounts for a decent profit margin.
Is my company in trouble because of this project?
While traditional tools like MS Excel and ERP software might be great instruments for retrospective reporting and cost tracking, what they cannot do is provide clear warning signs. You need leading indicators now. It is not too late to take action, if the project is not going in the direction you want.
Even if you just put together an extensive estimate before bidding on the project, it may not account for the things you could not have predicted. For example: adverse weather conditions, someone getting sick or lower than expected production rates can all affect a project. Construction Analytics tools provide greater insight into the project data and enable managers to immediately react to potential risks.
Moreover, such tools do not only point to existing concerns, but give visibility to blind spots that eventually might cause a project to run into issues. For instance, it is not uncommon for contractors to have unapproved invoices that are lingering outside of their ERP.
Construction analytical software provides you with a complete picture of all costs incurred. Those pending invoices can be an unpleasant surprise for CFOs. However, now it is easy to track them and see how they will affect your profit even while they are still pending.
Don’t be scared by your data
With so many ways to improve your profitability, why are some contractors still hesitant about deploying analytical solutions to serve their construction management needs? Time investment seems to be one of the major concerns. More often than not, firms find themselves having too much data and not enough insight.
ProNovos provides a solution with a busy contractor in mind. Our team synchronizes the platform with your company’s data gathered from different sources, so that you can start using our Analytics tool immediately.
Interested to see it in action? Get a free demo now.
Construction resource management capabilities of ProNovos’ Operations Manager construction software
Press release on the launch of Operations Manager–a good primer on the benefits of construction resource management and construction software platforms