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How Automation Can Help Construction Enterprises Increase Productivity?

Construction Tech Review | Wednesday, November 13, 2019

Construction companies need to adopt new technologies if they want to mark their presence and stay ahead in today's competitive market.

FREMONT, CA: The construction sector has every potential to increase its value. Still, companies are facing a massive amount of pressure to survive in the competition while keeping control over the rising expenses. Nowadays, any manual process is not working, and the organizations are hoping to adopt the technologies that will help them to do more work in less time without exceeding their headcount.  

Here are a few ways through which construction companies can update their processes and strengthen their productivity without adding headcount:

Streamline Back Office Processes

It is predicted that the employees at construction companies spend most of their time to do non-optimal tasks such as rectifying mistakes or search for project-related information. Such type of work can be time-consuming, and it might take more than two days, which the employees could have spent on priority activities that would have directly impacted profitability. If the companies want to free their employees from the mundane non-optimal tasks, they have to empower the team so that they can work smarter and not harder and also improve the back-office processes.

According to McKinsey, one reason for the reduced productivity of the industry is its dependency on paper to manage various processes and deliverables, such as blueprints, drawings, orders, invoices, progress reports, and punch lists. Papers can get quickly piled up, so to eliminate them will become an essential step in streamlining the process of back-office. Digital data will help in eradicating the paper and improve access to crucial information, that when shared accurately, will decrease errors and increase the speed of project delivery time.

Utilize Technology

There are various processes by which technology can help construction companies to manage their jobs and costs, but employees might be reluctant to accept new ways of working. However, the companies who have successfully invested in digital innovation and have embraced the support of technology are enjoying competitive advantages over the ones who resist them.

Technologies, such as cloud-based construction management software, take benefit from the real-time data and collaborative sharing tools so that it can help the firms perform various tasks, such as managing drawing and specs and connecting them with RFIs, punch lists and photos. The technologies increase productivity, boost efficiency, and ultimately add competitive advantage. Moreover, several mobile application extensions make it easier for firms to manage access and share information distantly rather than wasting time or money on traveling back to the office.

The automated construction workflows help firms keep away from costly work redoes, cut costs, and mitigate project risks. Accounts payable (AP) and payment automation get rid of time-intensive paper-processes and allow extreme operational efficiencies that offer cost savings, increased workload capacity, and enhanced financial accuracy.

Strengthen Vendor Relationships

Building strong relationships with contractors and suppliers is crucial for productivity as jobs are dependent on reliable and committed workers. Adoption of vendor management best practices will help in reinforcing bonds with suppliers, build loyalty, and also earn trust. The best practices may consist of providing simple onboarding processes, clear visibility into account status and payment, flexibility to choose a preferred method of payment (Check, ACH+ or VCC), and prompt, accurate reimbursement.

A mutually beneficial relationship not only requires open, honest communication, but also a commitment to working toward common goals. Dependency on manual systems for administrating the relationship such as housing data on local hard drives and spreadsheets, and resorting to unscheduled travel to job sites to stay in contact will be time-consuming and also inefficient. On the other hand, improved processes will help to solidify these valuable partnerships.

Preparing and Positioning for Success

Escalating productivity does not mean hiring more employees for construction teams, as work volume increases. By approving new methods of doing business, leveraging support technology, and strengthening relationships, construction companies can easily manage more amount of work proficiently and protect their bottom lines with a limited number of employees.

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