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Industry Insight Tips & Advice Trends & Technology Ultimate Guide

From Good to Great: The Power of UX Design in Software Products

Software is supposed to solve a problem. Whether it’s simplifying tasks that humans struggle with or just streamlining the workflow process, companies spend money on software in order to make their day-to-day operations run smoother. But for this to occur, the development company has to focus on the end users’ needs and wants. And that’s where good UX design comes into play.

Why is good UX design important? The reasons are endless. However, we’ll discuss 9 of the most important reasons here. Keep reading to find out what they are.

What is UX Design?

Before we dive too deeply into UX design, it’s important to understand what it is. It’s become something of a buzzword in the industry over the last few years, but a quick breakdown could be helpful.

UX stands for “user experience.” UX design is the process of developing a product, whether it be a website, software program, or device with the end users’ experiences in mind. With that description, good UX design sounds like a no-brainer, but it takes an experienced team of developers and designers to make it happen.

There are decision trees and formulas that developers use to ensure they’re implementing good UX design, but that’s far beyond the scope of this article. At the core, the development team considers who the user is, what their challenges are, and how the software can solve those challenges in the easiest and most efficient ways possible.

UX designers use market research, product development, strategy, design, and lots of testing to ensure they’re creating a product that is attractive, effective, efficient, and easy to use. That’s good user experience design in a nutshell.

This isn’t wildly different from the construction design process. Engineers, designers, and architects constantly consider how the buildings and infrastructure they create will impact the people using them during the design process.

9 Reasons Why Good UX Design is Important in Software

It might be easy to understand that good UX design is important, but all of the ways it can impact the end user might not be so obvious. The following are 9 reasons why good UX design is important when choosing a software program.

It Leaves a Lasting Impression: Good and Bad

UI (user interface) gives the user their first impression, but UX creates a lasting impression. How smoothly a software program runs, offers intuitive workflows, and allows the user to find the solutions, data, or reports they’re looking for will create an opinion of that program for the user. If the UX is subpar, even if only at the start, users will feel frustrated over just the thought of the software.

However, if that software is fast, intuitive, and provides answers without digging through multiple tabs in error, the user will remember it. They’ll have a much more favorable opinion of the program and rather than feeling dread when they log in, they’ll feel positive that they’re going to achieve their goals.

It Provides Value

Good UX design is not a mistake. It’s the result of a development team focusing its efforts on developing exactly the type of software that the user needs. This means the team won’t be spending time or energy developing aspects of the program the user really can’t use.

In the end, this streamlined and targeted development approach means less wasted resources, and this means a more affordable product for the end user. They’ll be able to get more value from the program because it was designed to solve their specific challenges and nothing else.

It Makes Learning Easier

Regardless of the software program, there is always a learning curve or implementation period where users have to get used to the new processes. Whether it’s the layout, workflow, or integration with other software programs, users need to learn how the new system works and deal with the bumps in the road.

Good UX design can pave those bumps and make learning the new system much easier. With a well-planned layout, intuitive workflows, and the ability to make adjustments that scale across multiple reports automatically, using the program can become like second nature.

It Ensures the Program Will Fit the Users’ Needs

Good UX design involves developing “personas,” or creating a fictionalized version of the ideal real-world user, and developing the software for that persona. Developers will take into account all of the user’s daily activities and responsibilities and the challenges that those activities and responsibilities create, and come up with a tailored solution.

In terms of construction, this ensures that the software meets the needs of the people in the building industry. An effective UX design will account for the project types, contract types, personnel, reports, and accounting that the construction industry uses. There are no useless functions or fluff to deal with.

It Encourages Widespread Adoption of the Software

It’s one thing to decide to implement new software and another thing to actually get everyone on board. While there are always a few folks that will resist change, a good UX design can help pry those old spreadsheets from their desperate clutches.

When a program is designed well and works as it should, the team will notice. Folks will start to show each other how certain functions are saving them time and frustration over the old program. And while a program champion must still learn the software and introduce it to the team, a good user experience can make implementation effortless.

It Reduces Reliance on Customer Support

How often do we get frustrated with a program, app, report, or input point and have to call customer support, only to realize the solution was simple? It was just a toggle buried in five layers of user settings. If we’re all being honest, the answer is “too often.”

While great customer support and service are critical to any software program, good UX design minimizes the users’ need to lean on it. By using simple, easy-to-adjust settings and input points, well-designed programs allow users to understand what they’re doing, make adjustments, and see an impact instantly. If something doesn’t seem right in a report, they should be able to access that report immediately and fix the issue without digging through tab after tab to get there.

It Helps Users Serve Their Customers Better

When a company decides to implement new software, the goal should be to simplify processes in order to run smoother and more efficiently. It can change the way the company handles almost all of its most important office work. And you better believe this transfers to the customer.

When a customer, partner, or lender calls a well-run construction company and requests an update, the latest report, a change order, or just clarification, good UX design really shines. A company rep should be able to log in, access the account, and pull that report or make that change in seconds. And if they’re using a program that simplifies data entry and provides automatic updates, they know all of those changes will be reflected across the program.

Not only does this mean serving the customer faster, but it also means providing them with accurate data. Good UX design lessens the chances of mistakes and oversights, and this makes it one of the most important aspects to look for in a software program.

It Promotes Communication

No one understands the importance of communication better than a well-oiled development team, and this often trickles down to the software. Good UX design involves creating channels and avenues that teams can use to talk to each other, work on the same project, and simplify communication.

In many cases, this means using cloud technology to ensure everyone has access to the same data at once. Any changes they make can be sent automatically to the folks who need to know about them, as well. This type of communication promotes collaboration and responsibility—all because the software was designed to do it.

It Directly Impacts Profitability

At the end of the day, any new tools or software that a company implements should improve its profitability. Good UX design, with its focus on efficiency and automation, can do just that.

With less time spent on data entry, updating reports, fixing mistakes, and tracking down signatures, office staff can focus their creative efforts on other projects. Those projects can then help the company move forward, improve its efficiency, and make better decisions. Only a software program created with great user experience design can offer the type of freedom a team needs to work like that.

 

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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 Trends & Technology Ultimate Guide

Why Forecasting Project Costs Is Important For Your Construction Business

From day one on a construction project, the number one question everyone has is whether the project will meet the expected budget. You can wait to answer this question at the end of the project when you can’t do anything about it, or you can assess where the project stands as you progress through the work, allowing you to act proactively if an overage is found. In order to assess the project costs before completion, however, you must forecast or predict the potential costs to complete the work.

A forecast to complete the project is a well-educated guess of how much you have left to spend to finish the work. It’s based on the current costs, the percentage of the project that’s complete, and what’s remaining to be finished. The better you are at tracking your costs, the easier it will be to predict how much is left to spend.

Before we get into how to forecast final costs on a construction project, let’s look at why it’s important to know how much the remaining work will cost you.

The importance of forecasting final costs

One of the primary benefits of forecasting costs is that you get an early warning if a project is losing money. Since many contractors rely on their profits to fund future work, losses on today’s job can quickly lead to real problems when it comes time to start the next one. Without adequate profits to fund the work, contractors have to rely on alternative financings, like bank loans or credit cards, that ultimately cost them more in the long run, further reducing profits. It’s a never-ending cycle of higher costs.

Predicting final costs also allows companies to identify their future cash flow needs and address any issues before they become real problems. If contractors know that they won’t have enough money coming in to finance their payroll or other necessary business expenses, they have time to move money from investments or seek lower-rate financing options.

Sometimes forecasting final costs can help contractors identify change orders that have been missed or haven’t been processed yet. If a change hasn’t been made to the project budget but extra materials have been paid for or work has been completed, it may show up as a cost overage. The contractor can then follow up with the owner or architect to determine the status of the required change.

Finally, forecasting allows companies to learn valuable lessons about the accuracy, or inaccuracy, of their estimates. If a contractor is always going over budget on labor costs, they will see that sooner and be able to adjust future budgets accordingly. This will make their estimates more competitive and lead to more work.

How to forecast final costs

One of the most important things you can do to help forecast final costs is to monitor costs as you go. If you’re relying on data from a single point in time to predict costs, it can be difficult to make the appropriate assumptions and gather enough data to accurately predict future costs. By tracking costs as you go, with an accounting system that supports job costing, you’ll be able to monitor the project’s progress and see cost patterns that may not be visible with a static report.

To forecast final costs, you’ll be looking at three data points: the amount remaining in committed costs, amount remaining in your budget, and historical costs. Based on these three data points you should be able to predict, with a reasonable degree of accuracy, the final costs for a specific scope of work. Let’s look at an example to help illustrate how these data points help predict future costs.

Let’s say we are forecasting costs for the concrete scope of work on a project. The contract with the concrete subcontractor was originally for $100,000, and they have billed $80,000 so far, leaving $20,000 to bill. This is the amount remaining in committed costs. Based on our original budget, we know that we still need to purchase some rebar that wasn’t part of the concrete contract for $5,000. We also know, based on reviewing past projects and the amount of work left to be finished, that we have about $30,000 in work remaining to be completed. So, how do we predict what our future costs will be?

Remaining committed costs:                       $20,000

Remaining in the budget:                                     $5,000

Historical data:                                                  $30,000

The answer will be somewhere between $25,000 and $30,000, depending on whether we are looking at it for cash flow reasons or to assess what our profit margin is for this particular project. Either way, we are using the three data points to inform our prediction and will continue to improve the accuracy of each prediction as we analyze the data on more projects.

What to do when you’re over budget

The second most important question, after “Are we on budget?” is what to do when you’re over budget. The answer depends on why you’re over budget.

  • If there has been a change in the project scope that affects the budgeted costs but hasn’t been reflected in a change order yet, that could cause an overage.
  • If there was an unforeseen condition, such as bad soil, that caused additional costs, this may cause an overage.
  • Or, if the general contractor or a subcontractor made an error in their work, that could also cause a budget overage.

Depending on the cause, the contractor will need to either ask for a change order or make an internal budget transfer. The internal budget transfer will move excess monies from one line item of the budget to another to help cure the overage. It’s important to note the reason for the transfer for future lessons learned.

How Premier helps you predict future costs

Premier has made forecasting future costs in your projects easier with its forecasting module. Using this module, project managers can account for unexpected costs and request internal budget transfers to cover overages.

To see how Premier can help keep your projects on track, request a demo.

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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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Features Industry Insight Tips & Advice Ultimate Guide

The Ups & Downs of Using Multiple Construction Systems Vs. an All-In-One Solution

If you’re considering making a change to your construction software, you’re probably wondering if you should stay with your existing way of doing things (usually multiple systems for multiple functions) or if you should integrate all your software needs into one central system. All-in-one solutions, like Premier, can take the place of document management, accounting, and project management software.

To help you make this decision, we’ve listed some of the benefits of staying with multiple solutions (because there are some), as well as the benefits of moving to an all-in-one solution. While cost is, and should be, a part of this decision, there are many other things to consider before deciding.

Benefits of using multiple software systems

  • If you’re using multiple software systems, say one for field communication and one for accounting, and it’s time to make a change to one of those systems, either an update or a software change, fewer people are affected by the change. Only the field or accounting department has to be trained on the new system, change processes, and work out the bugs. This can be less frustrating than having the entire company learn a new program together.
  • Let’s talk cost. Generally, software systems targeted to just the field or the office are less expensive than all-in-one solutions. They usually offer simplified processes that are targeted at a few pain points, so the costs to implement and purchase them are lower. Of course, this means that their capacity is limited, and you may not have access to more advanced functions if you need them. For example, many construction companies use Quickbooks for accounting, even though it lacks many of the tools and workflows necessary for contractors. In order to tap into these advanced functions, you’ll have to invest in a software that is structured specifically for the construction industry.
  • Depending on the structure of your business, using multiple solutions may fit your needs better. Very small companies, with only 1-2 employees, may not require the robust features of an all-in-one, and investing in such a system would be a waste of money for a company that small. However, as the business grows, so will its needs, and soon it will outgrow the capacity of these solutions.
  • Probably the biggest perceived benefit of using multiple systems, if you’re currently doing so, is that you don’t have to change what you’re currently doing. The fear of change and the havoc it can create keeps many companies from growing and adopting new tools. Transitioning to new software doesn’t have to be stressful when you have the right team and the right software for your business.

Benefits of all-in-one software solutions

  • One of the benefits of using an all-in-one software solution is that there is one centralized location for all your data and files. No more searching desktops, laptops, and the cloud for the information you need. By making the information available through the internet, your team members can get the data and files they need no matter where they are and what type of hardware they’re using. No more lost data.
  • With an all-in-one system, entries made in one part of the software are automatically sent where they need to go to update the entire system. For example, an AP invoice will show up immediately on budget reports, open AP reports, and the project’s work-in-progress report. Double entry isn’t required. This ensures that everyone can see the same data at the same time, and you don’t have to worry about whether the cost data has been synced with the project management data. It’s all in one system.
  • Everyone has access to detailed cost data, allowing them to drill down to the transaction if necessary. Synced data in other systems may come across as a summary of costs, not allowing a project manager to see the detail of those costs. Of course, everyone can only see the records they’ve been given permission to see, ensuring privacy when necessary.
  • An all-in-one solution grows as your company grows. You can add users and functionality as the need arises. Taking on new types of work or responding to requests for new reports or cost data can easily be accommodated without having to change systems or upgrade software.
  • Automation allows your team to save time so they can work on more pressing tasks. Automated AP invoice entry, pay-when-paid payments, and notifications allow your team to spend their time doing the really important things, and not babysitting the software system. Automation can also reduce the need for double entry, saving you from countless errors and time searching for them.
  • Instead of spending time on processes you’ve developed to work around the limitations of the software systems you currently use, you can streamline those processes and save workers time and money. For example, a worker enters a change order into the project management system, then has to enter the same change order into the accounting system. While in the same time it took them to enter the CO twice, with an all-in-one system the CO would be entered in both accounting and project management, and a CO issued to the appropriate subcontractors, as well.
  • When information from the project management and accounting systems are combined into a dashboard managers can see the big picture of how the company is running. New synergies can be seen when the data is presented together, and management can act quickly based on trends. Without a central system, creating these dashboards requires combining the data by hand, which leaves room for errors and takes time.

If you’re looking for a single solution for your accounting, project management, and document control needs, look no further than Premier. Afraid of change? Our team will work closely with you to ensure that the transition is as smooth as possible.

See how we can help, schedule your demo today to get started!

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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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Features Industry Insight Ultimate Guide

The 101 on Lien Waivers in Construction

When a contractor agrees to take on a project for a set price, they expect to get paid for their work. If a project owner decides not to pay them, the contractor then has the right to file a lien against the property. While this does initially put the contractor in the driver’s seat, another document exists to protect project owners as well: lien waivers. 

[su_animate type=”fadeInLeft”]So, what is a Lien Waiver?[/su_animate]

A lien waiver is a document that a contractor or subcontractor can sign to give up their lien rights in exchange for payment. This form is exchanged during the payment process, and it states that for a certain amount of money, the contractor will agree not to file a lien against the owner’s property.

This is a powerful document.

If a contractor has lien rights, they can file a lien against the property if they don’t receive money for their work. If the owner still doesn’t make good on the payment, the contractor can act on the lien and force the sale of the property. Once the property sells, the contractor is able to take their cut from the proceeds.

This creates a lot of risk for the project owner. Although most owners want to pay their contractors to keep them happy, they also prefer a bit of reassurance that the contractor won’t file a lien against the property. That’s exactly what a lien waiver does. 

Two Types of Lien Waivers

There are two types of lien waivers: unconditional and conditional. If a contractor signs either one, they’ll give up their rights to a lien. However, exactly when they give up their rights changes based on the waiver type.

  • Unconditional waivers essentially state that the moment the contractor signs them, they give up their rights to a lien. These are excellent documents for project owners because they essentially wash their hands of risk. For contractors, they might be signing this document before receiving any money, meaning they’re shouldering all the risk. If the project owner doesn’t pay, there’s no recourse other than a long, drawn-out lawsuit process.
  • Conditional waivers are a bit more diplomatic. A signed conditional waiver states that a contractor will give up their right to a mechanics lien when they get paid for their work. These forms are essentially like receipts for the project owner and create very little risk for the contractor. If the contractor doesn’t get paid, they still retain their right to a lien. 

Nailing the Lien Waiver Process

These documents carry a lot of weight, so it’s important that they’re handled correctly. Project owners need to ensure they’re receiving lien waivers from the general contractor before or at the time they pay them. However, it’s also important that the GC get lien waivers from their subs as well.

One missed lien waiver throughout the payment chain can lead to a lien.

So how should a project owner or general contractor handle the lien waiver process? The best route is through automation. 

Automated Lien Waiver Generation

Tracking down lien waivers from every contractor, sub, trade, or material supplier can be a nightmare. And, it can drag the payment process out far longer than necessary. Instead of manually handling the process, lean on automatic waiver generation.

Premier Construction Software can be programmed to generate lien waivers automatically. Contractors and subs can generate them and send them when submitting invoices, or the system can require them before issuing payment. The system’s customizable workflows can send these documents to everyone who needs them, including internal and external personnel.

This automated process can provide a bit of relief for the GC or project owner. As the system automatically generates proper lien waivers (unconditional, conditional, or even final payment), they’ll know that money won’t switch bank accounts until the document is signed. This lessens the risk for these parties tremendously. 

Electronic Signatures

When a contractor or sub receives or submits a paper lien waiver, they have to sign in and include it in their payment application paperwork. This creates yet more risk, as the document could easily get misplaced, leading the project owner’s accounting staff to believe the contractor never submitted the document, so they withhold payment until they receive it. Since the contractor isn’t getting paid, they might consider filing a lien. 

It’s a nasty cycle caused by one misplaced document. 

Since Premier Construction Software allows for electronic signatures, the risk of losing a lien waiver is almost non-existent. Contractors are able to access documents on any mobile-enabled device. Once they review the form, they can sign it and submit it to the project owner. This happens in real-time.

Storage and Review

Keeping all those lien waivers organized in hard copy form can be challenging for office staff, and it allows more room for human error than is necessary. Poor file management can mean time wasted looking for a specific lien waiver, or not knowing who even submitted them.

Premier Construction Software puts secure storage at the users’ fingertips. Premier automatically stores signed agreements on its cloud, and then sends the contractor or sub a copy of the signed document. The project owner knows who’s submitted the doc, and the contractor knows their lien waiver is on file. 

And, once the waiver is in the system, it enters an approval inbox. Users can access this inbox to view approved documents (such as signed waivers) and drill down for important information like payment amount, dates, and who signed the document. 

Customizable and Repeatable Lien Waivers

Depending on the owner, GC, and sub, lien waivers can look very different between each party. The owner’s customary lien waiver they send with payment could look different than the version coming from the GC or subcontractor. While they all serve the same purpose, standardizing them into one document can streamline the payment process.

Premier Construction Software offers users the ability to configure and customize their forms. This gives the owner and GC a standardized form they can use across the payment tiers. Subs submitting invoices will be filling out the same document the project owner sends to the general contractor. This consistent language not only makes the form easier to produce and send but also ensures everyone understands the form, allowing better transparency and communication. 

[su_animate type=”fadeInLeft”]Lien Waivers Require Careful Handling, and Premier Can Do It[/su_animate]

Lien waivers are vital to both project owners trying to keep their properties clear from litigation and contractors and subs looking to speed up their payment. Both entities can benefit from a system like Premier, like automatic generation, real-time electronic approval, and cloud-based storage takes the guesswork out of lien waiver management.

To see how Premier Software can help you structure your business for success, schedule a demo today.

Continue reading “The 101 on Lien Waivers in Construction”
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Industry Insight Tips & Advice Trends & Technology Ultimate Guide

Why is Software Support Critical to the Success of Your Business?

We know that changing financial and project management software can be stressful. The transition is often bumpy and can take several weeks or months to implement. With Premier Software you get the help and support you need throughout the software implementation and use process.

We help ensure that you are getting the most out of your investment and that your team is working at its peak efficiency. Here’s how Premier Construction Software provides you with the support you need to improve your business success.

Continue reading “Why is Software Support Critical to the Success of Your Business?”