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Industry Insight Tips & Advice Ultimate Guide

Why Embrace the Future of Automation in Construction

For construction companies, time is money. Both in the field and the office, time wasted is money lost. Using out-of-date processes and multiple software programs can quickly eat into slim profit margins. Construction companies must rely on technology to make their processes faster and avoid errors. If they don’t, they will continue to spend money and time fixing problems and repeating work.

Construction’s future?

Although no one has a crystal ball to tell exactly what the future holds, here’s where we think construction is headed:

Automation

Smart contracts will make the payment process faster. Technology will assess how much of the work has been completed, and payments will automatically be distributed to those contractors who have completed the work.

The software will analyze compliance documents, and automatically notify all pertinent parties when insurance or licenses have expired. Contractors will be able to submit compliance documents directly through a portal, where the software will analyze them and gather the required information.

All the documents that pertain to a specific project will be organized and searchable in one location. All team members will have access to these documents, and paper files will be a thing of the past.

Accounts payable invoices will be scanned by software, and the information will be automatically entered into the accounting system. The software will provide analysis and let operators know when contracts are overbilled or change orders are not updated.

Payments to subcontractors and suppliers will be processed automatically by the system, without the need for checks or other paper documents. Payments will be tied directly to the completion of the work.

Artificial intelligence (AI)

Project software will be infused with artificial intelligence that allows the software to provide predictive analysis based on past project data. As contractors process projects through the software, they will learn what activities cause the most delay or create the most risk and remind users when these possibilities occur.

Using the Internet of Things (IoT) and wearable technology, the software will be able to analyze the completion of work in the field. It will then compare that information to the project schedule to determine if there are any delays. Parties will be notified when the schedule slips, allowing the team to proactively respond.

Machine learning

Machine learning, a subset of AI, will assist estimators in project bid analysis, allowing them to select projects they will be the most successful on. AI will also identify the most common bidding errors and correct them before they bid goes out.

Photos will be taken of each worker as they arrive on-site and will be analyzed to determine if the proper personal protective equipment (PPE) is being worn. If there are missing items, the system will notify the worker and their supervisor, allowing them to correct the problem.

Problems with the status quo

Currently, construction teams work with a hybrid of software and paper documents. While some contractors strive to go paperless, many still rely on paper documents for certain activities, like material takeoff. This dual approach leaves contractors open to the following problems:

Lost time

The process of entering and analyzing information by hand takes more time than an automated system. Systems are available that capture data automatically directly from documents and provide analysis, saving contractors time.

Lost information

Paper documents are often lost or misplaced when they are filed incorrectly, or not filed at all. Even teams that rely on software often use multiple systems for different purposes (estimating, project management, accounting). This confuses users who don’t know where to look for the information they need. This takes extra time to determine the correct system and find the data they need. If documents are lost or misplaced, more time is lost in searching for them or re-creating the documents.

Errors are more likely

An experiment in 2009 showed that data entry workers made up to 10.23 errors when entering data from thirty spreadsheets. Data entry errors can cost companies millions of dollars. Workers can spend more time searching for errors and correcting them than in the initial data entry.

Hidden costs of mistakes

Besides lost time finding and correcting mistakes, it has been shown that incorrect data can cost companies up to 30% or more of their revenue. A 2018 Goldman Sachs report stated that the direct and indirect costs of manual paper invoice processing are $2.7 trillion for businesses around the world. The hidden costs of manual data entry can be enough to make or break your business.

Benefits of new technology

Embracing automation and other technological improvements can save companies real money.

  • Work is performed faster.
  • When there is only one integrated source of information, less time is wasted searching.
  • Accuracy is improved with automatic data capture.
  • Time and costs are saved by limiting time wasted on rework, searching through data, and fixing errors.

In a nutshell?

If your construction company is wasting time on manual processes and paper documents, it’s time to embrace automation. Premier Construction Software can help you reduce errors, speed up data entry, and waste less time looking for information. We bring the power of automation, artificial intelligence, and machine learning to construction accounting and project management. For more information on how our software can save you time and money, contact us today.

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Industry Insight Tips & Advice Ultimate Guide

Construction Software: Why Startup Businesses Should Invest

As a startup, one of the most important investments you will make is selecting the right type of software for your construction business. Instead of purchasing multiple systems that only offer partial solutions, it pays to invest in an all-in-one platform that will grow with your company. In this article, we’ll look at what kind of software construction companies need, which software is best for construction companies, and why you should invest in construction software. 

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Features Industry Insight Tips & Advice Ultimate Guide

Are Project Management Solutions Really the Solution?

When shopping for construction project management software, it can be difficult to determine if it’s best to go with a standalone service or an all-in-one that includes accounting. Both have their pluses and minuses, and a lot depends on how you run your business and the size of your staff.  

Premier Construction Software provides an all-in-one solution for your project management, accounting, and financial data needs. And while standalone PM solutions may look attractive, they really create more work than they save. Here are some of the features that Premier provides that standalone products don’t. 

Real-time cost data 

Some standalone project management solutions sync data with the accounting software at the end of the day or when told to manually. So, the data that is represented in the PM solution can be hours or days old. Project managers can’t be sure that they are looking at the latest and greatest information unless they sync the data themselves. 

With Premier, project managers have instant access to all cost and budget data and details as soon as it’s entered. This includes updates to project estimates when budget change orders are approved. The software automatically updates the budget and creates progress billing lines. Project managers can be confident that the information they have, even when accessed on a mobile device in the field, is accurate and up to date. This helps them make better decisions about the project to keep it on schedule and on budget. 

 

Access to all financial data 

Some standalone solutions provide only general information about costs, such as subtotals by cost type or grand totals. Managers can’t drill down into the data specifics because not all the data is shared with the PM solution. 

Premier’s financial data isn’t based on what one program does and doesn’t share with another. All of its information comes directly from the source, allowing project managers to get the information they need, including details and documents. They can look at all costs for a cost code and type and determine if a transaction has been coded correctly, ensuring that costs are properly allocated. Using the forecasting module, PMs can account for unanticipated costs and request internal budget transfers to keep the project on track. 

 

Custom billing forms 

Some solutions provide standard billing forms (like the AIA G702 and 703), but there isn’t much flexibility. Or they only provide templates for generalized invoices. Companies have to create their own invoice templates outside the system to meet their client’s needs. Then that information has to be entered into the accounting software, creating two sources for original data. This double-entry can lead to costly errors. 

Premier’s customized billing forms allow you to design just the form you need to match your client’s requirements. This flexibility allows you to present your billing the way your client wants to see it without adopting a workaround. You only have to enter the data once and have access to all the documents and reports you need to support the billing. Need to make a correction? Instead of a lengthy voiding process, our software allows you to quickly make one-click edits and simple invoice reversals. 

 

Detailed reporting 

Some standalone solutions only receive summary cost data from the accounting system. The export of data doesn’t include detailed information or images of documents to help users research issues. If a problem or question comes up, workers must look at multiple sources to find the information they need. 

Premier offers the ability to drill down to specific transactions and get all the information you need to solve a problem or answer a question in just one platform. Reports can be customized to provide as much, or as little data as is necessary. From generalized summary reports to detailed transaction reports, PMs can get the level of information they need to keep their projects on budget. This allows project managers to quickly get the accurate information they need to manage the project and make key decisions. 

 

Equipment and inventory cost integrations 

Some standalone PM solutions don’t support inventory or equipment cost and revenue tracking. Most companies choose to track these separately in a spreadsheet or by hand as a workaround. This can lead to potential mistakes and inaccurate cost and revenue data. 

Premier’s integrated equipment and inventory modules provide tracking, costing, and purchasing tasks that help ensure the accuracy of billing and cost data. You can track equipment-related expenses and assign mark-ups by the hour, day, week, or month. It also enables you to track historical supplier pricing and assign custom billing prices with custom mark-up codes. This ensures your company gets the revenue it deserves when using its own inventory and equipment and lets you know when it’s time to invest in new equipment or purchase more inventory. 

Automation 

Some PM solutions offer little or no automation of tasks. In addition, because data must be entered into the accounting system and the PM system, they require double the amount of work to keep data accurate in both systems.

Premier allows automation of routine and repetitive tasks, like repetitive invoice entry and automatic pay when paid payments. In addition, when an approved change order is received, the software auto-generates progress billing lines and creates and emails subcontract and purchase order change orders to subcontractors and suppliers. This saves workers time and creates workflow efficiency. 

And now for our verdict…

Premier allows contractors and subcontractors to get the real-time data they need to the level of detail they require, provide custom billing forms, track equipment, and inventory expenses and revenues, and take advantage of automation to increase productivity and efficiency. For more information or a free demo, invest in your business and contact Premier today.

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.

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Industry Insight Tips & Advice

Pros and Cons of Working From Home

 

As pandemic restrictions are tightened again, and some areas go back into lockdown, workers are again being asked to work from home when possible. While construction companies are used to working from many sites, the office staff is generally located in a central office. Changing venues for office workers has its advantages and disadvantages. Here are some of the benefits and challenges for construction company employers of having workers work from home.

Benefits to employers

1. Higher productivity

When working from home, employees are often more productive than they are at the office. There are fewer distractions from coworkers stopping by to chat or ask questions. It’s easier to shut out time-suckers like email notifications and unnecessary meetings. A FlexJobs 2020 survey found that workers who thought they were more productive at home, were. Respondents cited fewer interruptions and quiet working environments as part of the reason for their increased productivity.

2. Recruit from a larger pool of candidates

When location isn’t a factor when hiring, companies can expand the pool of possible candidates for open positions. This can lead to hiring more highly skilled workers for key roles. When companies hire the best of the best, their products and services improve in quality.

3. Reduce turnover

The flexibility inherent in a remote job allows workers to stay with them longer. For example, if an employee needs to relocate because of a spouse’s job change, instead of quitting they can easily continue working for the same company from another location. Companies can keep key talent when there are fewer constraints on where they perform the work.

4. Reduce overhead costs

For some companies, overhead costs like office rent and supplies can be significantly reduced or even eliminated by employing a remote workforce. With fewer overhead expenses, profits increase.

Employees also save money. Since they don’t have to commute anymore, they save on gas, car repairs, parking, and lunches. This savings translates into more of their hard-earned money staying in their pockets.

5. Fewer sick days

Spending less time around other people, coworkers, and the public, results in less sick time. Workers reduce their chances of catching viruses, colds, and the flu. With less downtime, workers are more productive and are able to get more accomplished over the long haul.

Challenges to employers

1. Collaboration and communication

As contractors know, when teams are spread out over long distances, it can be difficult to maintain communication and collaborate with team members. Impromptu meetings and discussions are more difficult to have when workers aren’t in the same physical location.

Luckily there are several tech applications that can assist teams in maintaining their connections. From online messaging apps, like Slack, to videoconferencing programs, like Zoom, it’s easier than ever for teams to keep in touch when working remotely.

When it comes to accessing collective data, online SaaS programs allow everyone to get the data they need from any device with an internet connection. This ensures that everyone has the info they need when they need it. Using SaaS software also allows office teams to stay productive from wherever they’re working, as well as ensuring everyone is working off the same real-time data.

2. Distractions

While there may be fewer distractions at home than in the office, they are still a struggle to deal with. Children, pets, and household chores can quickly steal employees’ concentration. Workers must do their best to set boundaries and structure their work environment and schedule to reduce distractions as much as possible.

3. Technology struggles

Technology can be difficult to deal with, whether it’s at home or in the office. Programs crash, computers die, and internet connections are lost. While these problems can’t all be eliminated, there are some things that can be done to help prevent them.

  • Ensure that employees have the latest in hardware and software installed on their work-provided devices.
  • Develop a schedule for regularly replacing hardware every 2 to 3 years.
  • Employ IT workers or hire a company to provide remote service to all employees.

4. Time Management

Without the structure of the office environment to keep them on task, some workers may struggle with managing their schedules when working from home. They may lose track of their work time and blur the lines between home and work life. This can lead to added stress and burnout.

Allow workers to set their own schedules when possible, so they can effectively manage their work and home life. Encourage them to stick to their schedule as much as possible, with only occasional changes under special circumstances.

5. Dress code

When working from home it can be tempting to dress more casually than when working in the office. While an occasional day spent working in your pajamas is acceptable, workers need to be dressed properly the majority of the time. Clothing can be both professional and comfortable, keeping workers in the correct mindset when they’re on the job.

As construction workers and companies continue to navigate the ever-changing pandemic restrictions, it’s best to remain flexible, as this helps reduce stress. Teams can function successfully when working remotely with the help of technology and a little patience.

 

Check out Premier Construction Software to see if it fits your company’s strategies and goals.  Our construction management and accounting software provide teams with the tools they need to take advantage of these technologies. Schedule a demo by contacting us today.

We’re more than just construction financial software. We’re built to help your business.

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.

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Industry Insight Tips & Advice

Go Mobile: 5 Reasons to Transition to Mobile Devices for Construction Reporting

Construction is a unique industry, where most of the work takes place off-site. This can lead to unique communication challenges, many of which have been reduced thanks to mobile technology. 

In the 2021 Construction Technology Report, the annual survey found that every year since 2018 over 90% of respondents is using smartphones daily. During the same period, tablet use has been increasing. Construction companies are increasingly recognizing the value of going mobile.  

Here are the top five reasons construction companies use mobile devices on the job, according to the survey: 

  • Daily reports 
  • Photos and video
  • Time management 
  • Safety management 
  • Drawing management 

While most companies are actively adopting mobile technology, some still rely on tried-and-true paper documentation. Due to the nature of the work, this can lead to project delays and added costs due to rework. Adopting mobile technology has several benefits for construction companies. 

Benefits of going mobile

  1. Better communication

Construction projects require almost constant communication between team members and the office. A lapse in communication can lead to errors and rework. Using mobile devices allows workers to communicate with the office and other team members while still in the field. There’s less wasted time in meetings and going to the office. Improved communication leads to better outcomes in the field, reducing errors and rework. Team members’ questions get answered quickly and efficiently without downtime. 

  1. Access real-time information

Many mobile apps allow field workers to provide input to and pull up reports, drawings, and emails without leaving the field. Project managers can see budget reports at any time, so they know where the project is. Supervisors can access productivity reports and compare them to past reports. Team members don’t have to wait for reports to be generated, they can access them when they need them. This allows them to make better project decisions quickly, avoiding schedule delays. 

  1. Improve productivity

With access to data at their fingertips, workers spend less time in meetings, going to the office, and on phone calls. They can spend their time actively working on the project, instead of looking for lost documents, timecards, or other paperwork. Productivity is maintained and efficiency is improved through the use of mobile technology. 

  1. Improve organization

Mobile apps provide document management, helping workers find the information they need when they need it. Workers no longer have to spend time looking through multiple folders on a shared drive or combing through files in a truck. Drawings are automatically marked with revisions, making it easy to know when you’re working with the current version. This helps prevent mistakes due to lack of communication and reduces rework. 

  1. Integration

Integrating information between the field and the office improves productivity, prevents mistakes, and improves organization. Workers spend less time reentering data into multiple systems and are able to be more productive in their work. Data entry mistakes are reduced, and information is available at the touch of a button, instead of waiting for lengthy reports. 

Premier Construction Software allows teams to communicate in real-time, from the field and the office. This improves communication, gives teams access to real-time data, improves productivity and organization, and is completely integrated. The mobile connection saves companies time and money on slow paper processes. It helps ensure that everyone is working from the same data at the same time. 

If your company is ready to go mobile with your project management and accounting software, contact us for a demo or to answer any questions. 

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.