Premier Cloud Construction Software
REQUEST DEMO

Month: July 2021

Categories
Industry Insight Resources Tips & Advice

Automate & Standardize Construction Compliances

Contractors know the value of staying in compliance with their contracts and their customers – it can make or break the relationship. Keeping up with compliance requirements and ensuring that customers have all the information they need can leave those contractors without an organized process scrambling.

Developing a process, standardizing it, and using automation to carry out routine tasks improves efficiency and saves money. But you may wonder, how do you do this?

So, what is contract compliance?

Let’s start by getting clear on what contract compliance means in the construction industry. Contracts require certain documents and information from contractors so that project owners know that they are operating within the terms of the agreement.

There’s an almost endless list of items that could be requested in a project contract, and each contract is different. Contractors have to provide the requested information and documentation to ensure the owner that they are meeting the requirements, not only at the beginning of the project but throughout its life.

Here’s just a shortlist of information that may need to be communicated to a project owner to ensure compliance:

  • Licensing
  • Insurance
  • Bonding
  • Credit information
  • Background check
  • Union agreement
  • Lien requirements and notices
  • Safety and health information

Ensuring that these documents are received by the owner, meet the contract requirements, and remain up to date with all your clients can be difficult if you aren’t tracking them in an organized fashion.

Here are some suggestions to get started on standardizng and automating your contract compliance process.

1. Create a process

The first step to automating and standardizing your contract compliance process is to create one if you don’t have one already. If you already have a process, document it so everyone knows what it is.

The steps in a contract process may include:

  1. Contract intake and review
  2. List items that need to be sent for compliance
  3. Review list for any items you don’t already have
  4. Obtain/collect compliance documents
  5. Sign contract
  6. Return contract to client
  7. Review requirements regularly for ongoing compliance

Depending on the specific compliance requirements, more steps may be needed. Make the process as simple as possible but recognize that it needs to be flexible as well.

2. Define roles

Now that you have the process written down, you’ll need to define who is responsible for taking care of each part. Steps can be assigned to departments or specific employees, depending on the size of your company.

For each step in the process, define what needs to be done, who is going to do it, and when it will be completed. It’s important to set deadlines for the completion of tasks, as contracts are often time-driven, and you need to ensure that you’ll meet the deadlines listed.

Be sure to include a way to deal with new documents or new requirements that you haven’t come across before. As situations and conditions change, contract requirements will as well. Assign someone to research the new requirements, as well as assign the task to the appropriate department or employee.

Once the process has been written up and all the steps assigned, distribute the information to everyone involved in contract management. Everyone needs to know who will be performing each role and how long they have to perform it, so they can keep each other accountable.

3. Automate as much as possible

Once you’ve created a standardized process for contract compliance, automation is the next logical step. Instead of wasting time finding and collecting paper documents, use technology to expedite the process. Automation helps streamline processes, which will save your team time and improve efficiency. And the chance for human error is reduced when compliance tasks are automated.

Construction management software can help automate your compliance processes. Online document storage and notifications can help ensure that you stay in compliance with your customers.

4. Periodically review and audit the system

On a periodic basis, you should review the system and audit the results to ensure that you are maintaining compliance with your customers. Talk to the employees involved in the process and look for gaps or areas that continually get bogged down. You’ll also want to review the current status of compliance over all your contracts to ensure that the system is working effectively.

Once you’ve completed the review and audit, assess the overall system to see if it is working and if it’s effective. If there are changes that need to be made, implement them, and then review the process again after a while. Continual improvement will help ensure that the process remains effective.

5. Remain flexible

COVID has taught us that we have to remain flexible and ready to pivot at any time. Contract requirements can be changed in an instant, and new requirements are added all the time. Meet with your compliance team regularly to ensure that the current processes are meeting the needs of the contracts and make changes, as necessary.

Start the process today!

The first step to standardizing and automating your contract compliance process is to write it down. Then assess it to see if it’s effective. Assign roles and responsibilities so each step is covered. Then, find out how technology can improve your efficiency by automating as much of the process as possible. Software, like Premier Construction Software, can track expiration dates and prompt you to request new documents as needed, and provide online file storage so your whole team has access to compliance documents from anywhere. Reviewing and improving your compliance processes ensures that your company is always running at the peak of efficiency.

Author Biography:

Dawn Killough is a construction writer with over 20 years of experience with construction payments, from the perspectives of subcontractors and general contractors. Dawn has held roles such as a staff accountant, green building advisor, project assistant, and contract administrator.  Her work for general contractors, design firms, and subcontractors has even led to the publication of blogs on several construction tech websites and her book, Green Building Design 101.

Categories
Tips & Advice

Supporting and Encouraging Women in Construction

In 2020, according to the Bureau of Labor Statistics, women made up 10% of construction industry workers. Up until now, the industry has done a poor job of reaching out to women and minorities and encouraging them to pursue a career in construction. And with a severe labor shortage in the industry, now is the time to act.

In 2021, Levelset, a mechanics lien processing company, surveyed 1,001 women in the construction industry about their experiences. One of the biggest frustrations for women is the lack of opportunity for advancement. “The glass ceiling is very real for smart women in technical positions,” said a manager for a California general contractor.

Women also feel that they aren’t respected as much as their male counterparts, especially in the field. “I am very good at my job and I do it well,” said one office administrator who works for a general contractor in Minnesota, “but in this industry, I am spoken to like a child a lot of the time. It’s assumed I don’t know what I’m doing and that is very frustrating. I love this industry and I see potential for so much growth and I really want to be a part of that, but it’s going to take a long time to shift the thinking that this is just a man’s industry.”

According to the survey, 59% said fewer than 1 in 20 women are in leadership roles where they work. That translates to less than 5% of leaders in the construction industry being women. “At all the jobs I have held in construction the opportunity to advance has been limited because the CFO has always been married to or has been somehow related to the owner of the company,” said an administrative assistant for a subcontractor in South Carolina. “It limits growth in the traditionally women-held jobs in construction.”

The events of the past year and a half brought the subject of inclusion and diversity to the forefront for the nation. Looking at the statistics above, it’s clear we still have a long way to go before we can claim to have a diverse workforce. The good news is, there are concrete steps that we can take today to encourage women to become a part of the industry.

Encourage diversity in contracts

In federal and state-funded projects, minority and women-owned businesses are given preference over other contractors and suppliers. Contractors are encouraged to reach out to minority-owned businesses to solicit bids. Some projects even have quotas that have to be met when it comes to contracting with minority companies. Some companies, like McDonald’s, are asking contractors to report their use of minority-owned companies on construction projects.

Expanding these requirements to use minority contractors and suppliers for private projects would encourage contractors to hire more minority companies. Some project owners, like the City of Portland, also track the gender and ethnicity of workers on site, encouraging diversity in field crews as well.

Support professional development

To encourage women to advance in their positions, companies should offer professional development opportunities to expand their skill sets. These opportunities could include workshops, classes, or on-the-job training. There are many organizations that provide professional development for women, like the National Association of Women in Construction (NAWIC). With chapters across the nation, women can participate in local, regional, and national conferences to learn more about the industry and the latest trends.

Mortenson’s Business Development Manager – Community Engagement, Alejandra Spray says, “We start identifying those people who show potential and want to keep growing. We identify people not based on their present title, but how hard they are working, how they rally the troops, how they inspire others, and if they have the desire to be more.” By identifying good workers early, they can be encouraged and taught the skills they need to continue moving up to positions with more responsibility.

Support networking opportunities

Meeting other women in the industry is beneficial for women at all levels. Networking allows them to learn more about the possibilities in their field and about how other companies handle issues and their processes. The key to getting the most out of these groups is to participate. When workers get involved in events, fundraisers, and other activities, they learn new skills, such as public speaking and leadership. They also benefit from getting involved in their community.

There are many professional organizations for workers in different skill sets, like engineers and architects, construction financial managers, women in trades, and unions. Other networking groups include local marketing groups, chambers of commerce, charity boards, and other volunteer opportunities.

Support mentoring programs

Mentorship is key for women who wish to advance their careers. It offers the opportunity for support and someone to challenge them to meet their career goals. “Mentorship is really a key part of the success of women in the industry,” said Anne Pfleger, President of the National Association of Women in Construction. “[Mentoring] can rejuvenate your career at any stage, it improves your personal productivity, it strengthens leadership skills, and it also increases career satisfaction.”

If women are unable to find suitable mentors within their company, management should help them locate groups or individuals that could help them along their career path. Companies should support regular mentor meetings and provide professional opportunities to help them meet their career goals.

Keep making progress

Above all, construction companies need to continue moving the needle when it comes to encouraging a diverse workforce. We need to continue to look for ways to attract and engage women in the industry.

“We are all human and we all want to succeed,” says Mortensen’s Spray. “I hope we can get to that place because I just love this industry. I love driving downtown and telling my kids I was part of that project, or when one of my mentees gets a promotion. There are so many rewards in the industry, and I’m going to keep fighting for more people to be given the opportunity to see the benefits of those rewards.”

Author Biography:

Dawn Killough is a construction writer with over 20 years of experience with construction payments, from the perspectives of subcontractors and general contractors. Dawn has held roles such as a staff accountant, green building advisor, project assistant, and contract administrator.  Her work for general contractors, design firms, and subcontractors has even led to the publication of blogs on several construction tech websites and her book, Green Building Design 101.

Categories
Tips & Advice Uncategorized

Leveraging AI, Machine Learning, and Automation in 2021

Contractors collect a lot of data in the process of building a project. It comes from the field, office, and outside sources. Successful contractors are using this project data to improve the efficiency of their production and save admin time. Technology tools like artificial intelligence, machine learning, and automation are driving this focus and providing valuable insights that contractors can use to increase profitability.

Artificial intelligence

Artificial intelligence (AI) is more than robots and droids. It describes all the ways that machines are able to mimic human thinking, like problem-solving, pattern recognition, and learning. It is now being programmed into powerful software packages that are being used by contractors to analyze and assess their projects. This intelligence is a powerful way to coordinate with team members and provide project monitoring.

AI is being used to create predictive models based on past project data. These models can be used to analyze projects for cost overruns, schedule delays, and other onsite issues. The software reviews past projects and compares them to current work to determine the similarities. From there it can predict potential problems and bring them to contractors’ attention before they become issues.

IoT devices are increasingly being used on-site to assist with safety and health monitoring. Smartwatches, cameras, and drones are able to detect worker proximity to other workers and potential hazards. These devices became more popular in the past year and a half due to the pandemic and the need to keep workers spaced out. The software was able to monitor who workers were close to, allowing for quick and easy contact tracing. It’s also possible to track where workers are on-site and to analyze work patterns to help improve productivity and efficiency.
Some contractors are using AI to better analyze their project schedules so they can more efficiently perform work and meet deadlines. ALICE is a schedule analysis algorithm, started by ALICE Technologies, that many contractors are using to assess and predict delays. It analyzes schedules by extrapolating thousands of possible outcomes and running simulations of a project’s 4D schedule and BIM. By adjusting the inputs, contractors can quickly see what effect it will have on the schedule.

Machine learning

Machine learning is a subset of AI and has to do with using statistical technology and calculations to understand project data and gain insights. As more data is added to the machine learning model, the software is able to assimilate the information and refine its predictions in current situations.

Contractors are using machine learning and predictive analysis to assess projects ahead of time so they know the risks and can proactively manage them from the beginning of the project. This type of analysis can monitor RFIs, project issues, and potential change orders and alert contractors to critical issues.

This learning is also being used to take real-time measurements of completed work on-site and compare them to the scheduled work to determine if a project is on schedule or not. Based on the result of the analysis, the software alerts contractors to direct their resources to address the delay. This analysis can be done across a project portfolio, allowing contractors to be more effective in their crew and equipment resource use.

One application of machine learning uses visual and audio data to identify people in photos and videos and recognize if they are using the correct safety equipment, including PPE. This information is then used to notify safety officers, superintendents, and others who can act to correct the issue.

Selecting which projects to bid on and improving the accuracy and success of bids is another way that machine learning is being used to make contractors more successful. The software can analyze the results to predict which projects contractors will be most successful on and provide insight on bid successes.

Automation

Automation, or the use of technology to perform tasks, is gaining in popularity in construction. Contractors who can eliminate unnecessary work improve efficiency, saving time and money, which leads to more profits.

Construction management and accounting software uses automation to speed up data entry tasks and help prevent typing mistakes. For example, automated invoice entry in accounts payable allows workers to pull amounts and codes from commitment records and receive notifications when budget line items are over their limits. These automations help ensure data is entered accurately and cost overruns are detected and managed.

For recurring invoice entries, where the amounts and codes don’t change, automating these entries speeds up the process and ensures that costs are coded and allocated correctly. Using a template saves time by reducing the amount of data that needs to be entered, reducing the chance for errors.

When mistakes are made in invoice entry, or an invoice allocation needs to be changed, simple invoice correction helps workers quickly make the necessary changes and move on with the rest of their work. There’s no need to worry about debits and credits, as the system takes care of those entries on the backend. The goal is to make changing invoices quick and easy while maintaining the proper audit trail.

Get the right software

If you’re looking to leverage the latest in automation, AI, and machine learning to improve efficiency and increase profits, you’ll need software that can gather and analyze data quickly. Our construction management and accounting software provide teams with the tools they need to take advantage of these technologies. Click here to schedule a personalized product tour.

Author Biography:

Dawn Killough is a construction writer with over 20 years of experience with construction payments, from the perspectives of subcontractors and general contractors. Dawn has held roles such as a staff accountant, green building advisor, project assistant, and contract administrator.  Her work for general contractors, design firms, and subcontractors has even led to the publication of blogs on several construction tech websites and her book, Green Building Design 101.