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Accounting Accounting Software Construction Job Costing Trends & Technology

Time is Money: How Premier Construction Software Can Save You Both

While a project can take months or years to complete, the reality is that construction moves fast. A company that knows time is money and knows how to make the most of both is on the path to success.  Premier Construction Software can help with time and money, and in this guide, we’ll discuss how it can save your company both. 

How Premier Can Save Time and Money

Would you put trust in a software program that can save your business both time and money? It seems like a no-brainer. That’s what our construction ERP solution was designed to do, and the following features or abilities are just some of the ways that Premier can impact your company.

Automated Processes

All of the data entry, report creation, and updating required to keep a construction business on track requires a lot of time. One of the most significant benefits of using Premier Construction Software is its ability to automate processes. 

When a user inputs or changes a value in the system, the software knows to update every related value affected by the change without a person having to track down the specific pay app, change order, or report.

One-click updates might seem the big time and money saver here, but consider this: Updating reports and budgets manually introduces multiple opportunities for human error. The time it takes to realize there is a mistake, track it down, and change it can be tremendous. And, should that mistake affect the project, it may translate to real money wasted. 

Customizable Workflows

The amount of time it takes to get a document, budget transfer, or change order in front of all the people that need to see it is often time wasted. With customizable workflows, users can design a free-flowing system that automatically moves important documents from person to person.

Ultimately, these custom-designed workflows ensure that important documents or changes make it through all of the required stops faster. Whether these documents need approvals, modifications, or updates, the company will receive feedback in less time using automated workflows.

Cloud-Based Storage

Upgrading document and drawing storage is a great way to save time and money. While most construction companies have evolved away from running to the shop every day for the latest revisions, their access to these documents is still antiquated and slow. 

For example, loading drawings onto a drive and then having to access those drawings with a computer is slow. Or, attempting to send large files through email only to have it take forever. And what if that drawing wasn’t the most updated version? Or just the older version the other party was looking for?

With cloud-based storage, contractors can move past those old, slow document management solutions. Premier Construction Software allows users to access the cloud for documents, drawings, photos, pay applications, and more from any internet-enabled device. It’s one of the fastest ways to share information with a team, and it can save time and money right away.

Report Generation

No one wants to blow that meeting in front of the investors or stakeholders, but time spent compiling data for a custom report may be a waste. Premier has the ability to automatically generate important reports with the very latest updates, as well. 

Not only are these reports easy to generate, but they take into account all of the most up-to-date information. Rather than stressing out about that report all week, it’s possible to simply click a button to create a report that’s not only instantaneous but also more accurate than anything you could compile.

Electronic Signatures

The construction world runs on agreements and signatures. Waiting to get those signatures on a paper agreement takes lifetimes (or at least it feels that way). The documents either need to be sent via courier or downloaded, printed, and sent back. Or, the agreement has to wait until a meeting can be scheduled for everyone to review the documents together before anyone can sign anything.

With electronic signatures, this entire process can take a fraction of the time. Documents can be sent electronically, which recipients can open from any internet-enabled device. Once they’ve reviewed the contract, change order, proposal, RFI, pay application, or any of the many compatible docs, they can sign electronically. This instantly updates the status in the system, cutting down on data entry or errors, and saving time and money.

Subcontractor Management

Minimizing the amount of time spent collecting lien waivers, monitoring compliance, calculating payment retainage, and ensuring everyone gets paid costs contractors and project managers lots of valuable time. But with a construction ERP like Premier, which is designed to make subcontractor management easier, users can save time and money.

For instance, Premier can track licensing and insurance compliance documents and alert the users and sub to possible expiration. It can also automatically generate subcontractor agreements and change orders instantly and ensure that those documents make it to the sub for an electronic signature. It’s also easy to set up automatic retainage for each payment, as well as distribute payments automatically (and accurately) by setting up pay-when-paid AP. 

Premier is All About Strengthening Your Business

Premier Construction Software’s goal is to strengthen your business using simplicity and automation. This means less time spent doing the remedial tasks that are always prone to error. When you’re not paying them to handle these tasks, you’re saving money and freeing them up to be creative and focus on projects that create more revenue for your business—and that’s a recipe for success. 

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Accounting Industry Insight

Understanding Change Orders in Construction

premiercs understanding change orders in construction

Every company sees change orders slightly differently. Some see them as a time and resource vacuum, while others see them as opportunities to make more money. And the fact that there are many different outlooks on the subject makes truly understanding change orders in construction and the impacts they have a challenge. In this guide, we’ll take a look at these important documents, what they are, and how to manage them.

What is a Change Order?

A change order is a document used to modify the original contract on a construction project. These documents detail changes in the scope of work for the contractor as well as any adjustments to the amount of money the contractor will make on a project. They’re essentially miniature contracts (sometimes with not-so-miniature impacts) that steer the project after the original contract is awarded.

For example, let’s say a contractor won a bid to build an apartment building with eight identical apartments inside. At some point during the project, the project owner realizes that the bathrooms could benefit from half-walls alongside the toilets. The project owner will approach the contractor, they’ll discuss the details, and the contractor (or project owner) will draw up a change order that states the contractor will build half-walls in the bathroom for an agreed-upon price. It’s simply a contract within a contract that denotes a change in plan, materials, or pricing. 

Change Orders for Additional Work

Change orders for additional work require more time and resources. For that reason, these change orders will increase the total cost of the project, as well as extend the timeline. Impacted contractors must ensure that the change order reflects these changes to avoid issues when dealing with these types of change orders.

Change Order for Subtractions

Change orders that omit certain aspects of the agreed-upon original contract have the opposite impact on the cost and timeline. Under these change orders, project owners and GCs may expect the price and timeline to decrease. 

What Causes Change Orders?

Change orders can be caused by project owners, designers, inspectors, contractors, material suppliers, and many other possibilities. 

  • Project owners can change their minds about the budget. 
  • Designers can add design elements or colour changes. Inspectors may notice code issues that require the designer to go back to the drawing board. 
  • Contractors might not be able to do the job for the agreed-upon due to unforeseen circumstances or site conditions. 
  • Suppliers might not be able to get the chosen material.

Any one of these situations would alter the original plan. They could impact the budget or the timeline, and these changes need to be documented and agreed upon with the parties responsible for the changes. How these changes impact the project depends on what they involve.

Change Order Protect Contract Parties

Change orders can be a headache to manage, but they protect contracted parties. These documents take modifications in the course of the project and turn them into clearly-understood directives with legal backing.  

Contractors know that once they have a change order, they can move forward with the project without fear that they’ll be breaching the contract. They also know that if the project owner or designer adds something, they can adjust the timeline or project price and that they’ll have lien rights if they don’t get paid. 

Project owners know that they can alter the contract to subtract an item or design element. This will likely lower the amount of money the contractor was expecting, but the document keeps the contractor from suing or placing a lien on the project for non-payment. 

How to Manage Change Orders

Managing change orders is the most difficult aspect of these documents. Knowing how they’ll impact the budget and timeline, getting the correct signatures, communicating changes to stakeholders, and changing everything in the system at one time are all difficult tasks to coordinate. 

Budget Impacts

Change orders can cause ripple effects on a project budget. For example, if a particular material isn’t available, but a more expensive item is, it’s important to know how much that will impact the project budget before moving forward.

With construction ERP software, many of the best programs offer customers a chance to see how the change would impact the budget in real time. These systems allow users to lock original estimates or shift budgets without permanent changes. This also makes communicating the change’s impact much easier. 

Timeline Overruns

Change orders are often to blame for the project running off track and behind schedule—whether it’s true or not. But, changes typically impact the timeline a little, as they usually mean more or less work. It’s knowing how much it will throw the timeline off track that makes a difference, and the change order should reflect it. 

A construction ERP can help determine how much of an impact the change order will have on scheduling and the project delivery date. This can help the project owner decide if changing the timeline is worth the cost.

Getting Approvals

Getting approvals and signatures is always a challenging aspect of construction, and change orders are no different. Ensuring that the right eyes are seeing the change order and then get their signature can seem impossible.

A construction ERP can simplify this issue. By setting up automated workflow and capturing electronic signatures, the change order process moves along faster, saving time and money. Users can access the system from any internet-enabled device in the world.

Automated Changes

Once all of the approvals and signatures are secured it’s time to make the actual changes. Entering the change orders into whatever accounting software program the company uses is all the opportunity that’s required for multiple data entry-related issues like human error, accuracy, and a lack of thoroughness.

The right construction ERP software can handle this challenge, making automatic changes to every line item affected by the change order. With the click of a button, the changes will ripple through the entire system, automatically updating budgets, billing amounts and timelines, and more. 

All without manual data entry.

Communicating Changes

Communicating changes to the contract to company stakeholders requires data and reports. They want to know what’s changing, how it’s affecting the project delivery, and how much it’s going to cost the company.

Construction ERP software can handle those questions and more. With the ability to generate reports in real-time, project managers can provide stakeholders with the latest, most accurate information regarding these changes. 

Change Orders are Necessary, But They Require Management

Change orders are necessary, as almost all projects go through one change or another after signing the contract. But knowing how to manage these documents is important. By relying on the right program, like Premier Construction Software, contractors can minimize the negative impacts these documents have on their projects. And isn’t that what it’s all about?

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Industry Insight Tips & Advice Uncategorized

5 Ways To Improve Mental Health in the Construction Industry

Mental health awareness has skyrocketed in recent years. With celebrities, athletes, and public figures bringing this once-hushed topic into our daily lives, many industries are having long-overdue conversations. The construction industry needs to be one of them.

More so than almost any other type of business, the people who make up the construction industry are dangerously susceptible to poor mental health. In fact, the Suicide Prevention Resource Center places construction as the industry with the second-highest rate of suicide, behind only the mining, quarrying, and gas extraction industry. That’s a statistic that shouldn’t be overlooked.

The issue is this: overall mental health in the construction industry can’t improve if the tough conversations don’t come up and leadership doesn’t take action. Let’s take a deeper dive into mental health awareness in the construction industry and what we can do to improve it.

What is mental health?

While it’s one of the most affected industries, construction as a whole doesn’t talk much about mental health—in fact, the topic is often looked down upon. For that reason, folks who spent their whole lives building things might not be overly aware of what mental health truly is.

According to the CDC, mental health is “our emotional, psychological, and social well-being. It affects how we think, feel, and act. It also determines how we handle stress, relate to others, and make healthy choices.”

And, here’s a critical distinction: mental health and mental illness are not the same things. These terms are not interchangeable, and someone experiencing poor mental health is not necessarily suffering from a mental illness. This is an aspect of mental health that the construction industry needs to recognize.

Why is mental health in the construction industry so poor?

Before we can take steps to improve the mental health of the people that make up the construction industry, we have to identify what the issues are.

First, understand that stress is a major factor affecting the mental health of the construction industry. Long workdays, delays, employment uncertainty, contract disputes, and the generally physically taxing nature of the industry all wear people down. When you also consider the amount of money on the line for many contracts, the stakes are incredibly high for the industry. 

Employees are often afraid to take a sick day or leave early for fear of it affecting their jobs, as well. Rather than stay home when sick, hurt, or suffering from mental health challenges, they come to work out of fear they’ll be fired, scolded, or berated. 

We also need to look at the demographics of the industry. Construction is—and has thus far been—male-dominated, with men making up approximately 90 percent of the workforce. As a whole, males are less likely to discuss mental health than women for fear of being seen as weak or unable to cope with their challenges. As a result, they never reach out for mental health guidance, which is evident in the construction industry.

This is also an issue perpetuated through generations. The older generations never discussed mental health or even recognized that it could be an issue. By handing down trade secrets, techniques, and wisdom to the newer generations, they’ve unknowingly transferred this closed-off mindset toward mental health.

With this closed-off mindset comes the inability to recognize the signs of mental health distress or find healthy ways to improve it. Instead, depression, diminished physical health, high blood pressure, substance abuse, and other “accepted” issues plague the industry, many stemming from the taboo surrounding mental health. 

5 Ways To Improve Mental Health in the Construction Industry

Thus far, it’s been a very bleak outlook for the construction industry’s mental health. But, it doesn’t have to be that way forever. With a bit of awareness and encouragement, construction doesn’t have to suffer as it always has.

1. Improve Company Culture

Company culture has a lot to do with the stress that its employees feel. A rush-rush, hectic company that ignores accomplishments and harps on mistakes is not a great place for anyone to work, and it will take its toll on mental health.

Instead of that volatile environment, strive to improve company culture:

  • Recognize employees for their hard work
  • Throw events to show your crew you appreciate them
  • Have quarterly seminars with guest speakers and free lunches
  • Encourage employees to sign up for training
  • Allow employees to use their PTO time responsibly
  • Encourage breaks during the day

There are more approaches to take as well. While none of them improve mental health directly, they do create an atmosphere where employees feel valued.

2. Educate Employees

Many of the most affected employees don’t recognize the signs of poor mental health. For that reason, education is critical.

There is employee well-being training that will come to a workplace and educate the employees about mental health. This will inevitably be met with groans and eye-rolling, but with the right trainer, a lot of good things can happen. Holding regularly scheduled training keeps the conversation rolling, and as employees find benefits or takeaways, those training will begin to pay dividends.

3. Give Your Employees the Opportunity for Help

Even when someone recognizes that they aren’t feeling like themselves, they might not know where to turn. An Employee Assistance Program (or EAP for short) gives them that first step. These programs help with not only mental health at work but also the effects everyday life can have on a person. 

Also, provide your employees with contact information for the Substance Abuse and Mental Health Services Administration and other similar programs.

4. Make Mental Health Awareness Part of the New Generation

One way to improve your company’s approach to mental health awareness is to sow the seeds early with the new generation. Whenever onboarding a new employee, be sure to discuss your training, sick day policies, and EAP so they know that their well-being matters. Just make certain that you hold up your end of the deal.

While this is certainly a “long game” approach, it’s much like farming for a healthier company. Planting the seeds with this generation will help remove the stigma over time and create a healthier, more accepting work environment where conversations about mental health are more normalized and less taboo.

5. Make Awareness Start at the Top

Construction is a taxing and tolling business, and successful business owners, project managers, foremen, and supervisors have all taken their share of blows. It’s important to understand that for mental health awareness to truly take hold, it needs to start with these leaders.

First, business owners need to believe in something if they expect their employees to follow suit. Attending their own training, reaching out for assistance when their backs are against the wall, and having these difficult conversations are all critical. Only then can the belief trickle down to the managers and supervisors. With management on board, the boots on the ground will have the support they need to take care of themselves and their mental health.

It Takes Awareness

Improving the mental health of the construction industry as a whole requires awareness. Once we’re able to remove the stigma surrounding asking for help, we might be able to lower the rate of suicides, depression, and health conditions while also improving productivity and safety. With the tips outlined in this article, change is within the industry’s reach. 

Premier Construction Software is a true cloud, all-in-one accounting, job cost, project, document, and drawing management solution designed to meet the needs of GCs, Developers, Design-Build, and Homebuilders. Trusted by thousands of companies, Premier partners with forward-thinking, progressive construction companies to provide a fully integrated solution for office and field staff operating on Mac, PC, and any mobile device. Premier operates in North America as well as Australia, providing a true cloud solution that meets the needs of both markets today.

Check out Premier Construction to see if it fits your company’s strategies and goals. See how we can help your construction company to work smarter. Schedule a demo by contacting us today.Author Biography:

Tom Scalisi has over 15 years of experience working in the trades. Since moving to full-time freelance writing, he has developed a passion for helping construction companies grow. He enjoys teaching contractors how technology can streamline their businesses and educating them about their rights during payment disputes. 

 

 

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Industry Insight Tips & Advice

Building Green: Top Trends

Green building has been around for several decades now, and the technology that goes with it continues to grow. Many new inventions, and some repurposed older ones, are helping building owners and homeowners meet their commitments to a better environment, both inside and out. We’ve come up with a list of six green building technology trends that are shaping the future of green construction. Some have been around for a while, and some are fairly new.

Smart glass

Windows aren’t just for looking at anymore, they can help heat or cool your home or building. Smart glass protects buildings from solar heat gain during the summer months. Solar heat gain is caused by radiation from the sun. Windows are rated on a scale of 0 to 1 showing how much energy passes through the window. Smart glass uses a small electric charge to control both the tinting and solar heat gain, reducing the temperature inside. And the glass is well insulated to protect from cold weather during the winter.

The smartglass allows building owners to have control and flexibility when it comes to how much heat gain they want at any particular time. Reports say smart glass can save up to 25% on HVAC costs.

Smart appliances

Today’s appliances connect to the internet and to each other to allow you more control. For example, washers and dryers tie into your home’s smart meter, so they can run when electricity is the cheapest. And the refrigerator comes with a touch screen so you can connect to the internet and watch TV or videos demoing a new recipe. It can also check your shopping needs, as well as your current food inventory. And all this information is available on your phone, too, allowing you to control your lights and appliances even away from home.

Smart appliances can also tie into a home management system like Alexa. These management systems allow you to control your lights, heating and cooling, and other appliances from a central hub or app on your phone.

Biodegradable materials

Landfills are quickly filling up with building materials, either from building scraps or demolition debris. Many of these materials will have a long life sitting in the landfill before they break down. One trend that seeks to reduce the amount of trash in our landfills is biodegradable materials. Selecting natural materials like bamboo, timber, and linoleum, which all break down easily, helps reduce the amount of trash sitting in landfills. Other options include organic paint and insulation made from recycled denim and newspaper, instead of fiberglass.

Low emitting materials

Many building materials off-gas dangerous chemicals into the air during installation and after they are installed. This off-gassing of chemicals results in what most call the “new building” smell. Many materials are now available in low or no emitting versions. This makes it safer for those installing the materials, as well as people living and working in the building after it’s installed. Products available in low emitting versions include adhesives and glues, paints and coatings, composite wood, and flooring.

Net-zero energy

The goal of many building owners is to be net-zero energy. This means their building produces as much energy as it uses. Achieving this goal requires a combination of energy efficiency measures and renewable power. Efficiency measures often include additional insulation in walls, insulated windows, point-of-use water heating, and efficient HVAC equipment. Electrical power can be generated by solar or wind energy, depending on which is most prevalent. To store power until it is needed, the building can use battery storage or be connected to the grid. If it’s connected to the grid, it sells power back to the utility when it creates too much and takes power from the grid when it’s needed.

Net-zero energy is a lofty goal for any building or home. Owners can use alternatives, like purchasing renewable energy from their utility, to help offset the lack of renewable energy on-site. Or they may develop a renewable energy plant on a separate piece of land if that makes sense financially.

Carbon neutral

This trend is on the cutting edge as many building teams are working to design ways to reduce the amount of carbon needed to build and operate a building. Current trends include planting trees, using materials that trap carbon throughout their life, like carbon-eating concrete, providing the most efficient HVAC equipment to help reduce the need for power, and using renewable power sources, thus reducing emissions. Building owners can purchase carbon offsets to reduce their footprint. These offsets help support carbon sinks, like forests and the ocean.

Conclusion

The popularity of green construction continues to grow, and with it so does the technology. The goal of any green building technology is to make our buildings healthier and improve our natural environment. Inventions such as smart glass and smart appliances also make our lives easier and more comfortable. While biodegradable and low emitting materials make our inner and outer environments healthier. And net zero and carbon neutral are goals that many building owners are making a reality with their commitment to a better environment.

Premier Construction Software is a true cloud, all-in-one accounting, job cost, project, document, and drawing management solution designed to meet the needs of GCs, Developers, Design-Build, and Homebuilders. Trusted by thousands of companies, Premier partners with forward-thinking, progressive construction companies to provide a fully integrated solution for office and field staff operating on Mac, PC, and any mobile device. Premier operates in North America as well as Australia, providing a true cloud solution that meets the needs of both markets today.

Check out Premier Construction Software system to see if it fits your company’s strategies and goals. Schedule a demo by contacting us 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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Tips & Advice Trends & Technology

How COVID Changed Construction

There’s no doubt that the Coronavirus has changed everyone’s life. Those who had it will never be the same, and those who haven’t still live in fear. The construction industry is not immune to these changes. From a drastic material shortage to new ways to collaborate, the industry will never be the same.

Here are five ways the construction industry has been impacted by COVID.

1. Materials shortage

There isn’t a trade that hasn’t been impacted by the materials shortage in some way. It started with factory shutdowns due to stay-at-home orders and was followed by a trucking and shipping labor shortage. Now we have hundreds of cargo ships stranded outside ports waiting to be offloaded.

The materials shortage started with lumber, then moved quickly to steel and other building materials. Now there isn’t anything that hasn’t been affected. Approximately 68% of contractors surveyed said they were experiencing material delays in the 2nd quarter of 2021. The shortage has delayed projects and caused prices to skyrocket. At one time lumber was up over 300% from the previous year! And now we have additional supply chain issues to deal with in the coming months. There doesn’t seem to be a quick answer to this one.

2. Health becomes a priority

Gone are the days of going to work when you are sick. Since almost any symptom could be a sign of the COVID virus, everyone with cold or flu-like symptoms was sent home. Workers were told not to come in if they felt sick. Then, once tests were available, we went to testing everyone and quarantining those who tested positive. Whole crews or job sites could be knocked out and the project placed on hold due to contact tracing and the required quarantining.

Now we are dealing with vaccines, mandates, and whether to mask or not. What started as a health issue has become a political hot potato. It’s left companies in employees wondering “what next?” Things won’t go back to normal anytime soon. Contractors developed new ways to track symptoms and contact traces using construction software packages.

3. New ways to collaborate

When the stay-at-home orders first came out, design teams could no longer travel or meet on job sites. Everyone that could work from home did, which made collaboration much more difficult. But teams rose to the occasion and found new tools they could use to work together. Tools like drawing collaboration were used to keep everyone informed of design changes. And Zoom calls became the norm as teams worked together to make it work.

Even building inspectors started doing inspections using photographs and video conferencing. This sped up the inspection process for all involved.

Cloud computing and web-based SaaS software have changed the ways teams collaborate. Since most were working from home and travel was restricted, being able to access documents and information from anywhere became a necessity, not a luxury. Cloud-based technology and construction

management software, like Premier, helped contractors stay connected, scale their operations without having to rely on human resources, make investments in their companies that eliminated time-consuming processes, and identify cash flow issues and problem projects early. Without such flexibility, many companies found it hard to operate in the new environment.

4. E-Signing became more popular

One thing that couldn’t stop was payments, and to keep the documents flowing many companies had to rely on electronic signatures. Although they’ve been legal for years, they gained in popularity during the pandemic. Some states, like Oregon, started accepting remote notaries, while others had been for years. A remote notary session involves the notary and signer getting together on a conference call to witness the signature. This makes it easier for lien waivers and other documents to be notarized so they don’t hold up payments.

The more electronic signatures were collected, the more document management became a necessity. Companies had to track lien waivers, subcontracts, contracts, change orders, and purchase orders and know when each had been signed. Construction management software, like Premier, allows contractors to keep these documents organized and know exactly who’s missing. You can seamlessly connect your e-signature software with Premier software to collect the signatures you need quickly and easily.

5. Materials cost increases force price increases

It started with lumber, rocketing 300 percent from its starting price, then other materials started raising their prices. Now gas prices are rising, along with other supplies for construction projects. As prices rose, contractors started to pass on those costs to their customers. The cost to frame a house more than doubled during the height of the lumber price spike.

Some customers delayed projects to try to avoid high material costs, while others just paid the price. Many contractors started adding price escalation clauses to their contracts to protect them in this volatile market.

Conclusion

We can only hope that someday we’ll be able to put this pandemic behind us and return to life as we knew it. Some of the changes to the construction industry caused by COVID are for the better, like making health a priority and the rise of collaboration. Other changes, however, like price increases and material shortages, are best left in the rearview mirror.

 

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.