Project cost overruns are far from an abnormality to have on a construction project. That would be the last thing any contractor-owner or project manager would want. A reliable survey conducted reports that 98% of projects face some degree of budget overrun. It doesn’t get any worse when the project manager has to explain to other project stakeholders why a project has overrun the budget.
However, construction budgets have been under the scanner in recent times more than ever, as mounting labor and material costs have pushed contractors and project managers to spend where it matters the most. In fact, one can argue that actual building cost in its lifecycle, i.e., almost 70% of a building’s cost is the only operation as against 20% which is design and construction. Likewise, it is always desirable to invest in the front end (e.g., planning, designing), and cut towards the fag end of the project, when you look at a construction project phase-wise.
Therefore, costs need to be managed effectively and negative cash flow prevented. Only construction management software for builders and contractors that is web-or mobile-based can provide access to the right data at the right time, boosting confidence across construction teams that the information provided is up-to-date and accurate. Here are some of the areas where project management software can save valuable money:
Construction Cost Estimating:
This is the first step towards cost savings in the construction area. Project management (PM) software suite can divide a complex task into smaller chunks with the input and collaboration of the entire team for cost estimation. Construction cost management software can effectively track and share expense data to avoid overspending, manage cash flow, and achieve an optimal outcome.
Management of all construction costs:
Construction project management software enables easy access to data based on user privileges, unlimited addition of users, and creating jobs, tasks, activities, and schedules. Details such as contractor’s values and pending revisions can be easily captured and updates generated for view. When there’s clear data reporting, there is positive cash flow and improved bottom-line.
Management of project budgets:
Construction ERP software helps you make data-driven decisions every day as employee timesheets, invoices, schedules of values, and payment applications can be easily documented and viewed fully at a glance. Budgets within the program can be reviewed, approved and updates sent on a daily, weekly, and monthly basis to know your budget standings.
Management of change orders:
Project management software for construction can handle change order requests made by other participants of the team, give project updates, and help gain approval. Monitor your finances and bottom line using a centralized location for change orders.
Track & Manage Invoices:
When your invoices are centralized in a uniform location, they can be sent directly through the tool, replacing tedious manual filling of invoices for quick and convenient payment.
Project Management Solutions:
Web-and mobile-based applications can offer an easy and quick way to monitor costs from start to completion. Project management software not only helps you measure expenditures but also reduces risks at various points throughout the construction project lifecycle.
Protect your bottom line and cash flow:
There may be possible hold-ups or problems that could lead to high-cost overruns. If you’re able to capture these issues early with an effective construction PM software, you’re more likely to fix them before they escalate into something bigger.
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