Categories
Tips & Advice Trends & Technology Ultimate Guide

Electronic Approvals: The Key To Improved Synergy

When a construction company finds a way to improve communication and efficiency, it’s taking a step toward serious growth. With everyone in the company having access to the tools to work quickly and automate their most menial tasks, they can expand their possibilities and find job satisfaction. In construction, the synergy electronic approvals promote can be the key to unlocking both these scenarios.

Electronic approvals in construction are all about automating workflow, improving communication, and maximizing efficiency. Everyone benefits from these tools. Let’s find out how.

Electronic Approvals: An Overview

In construction, almost every decision, change, or adjustment requires someone to approve it. In the past, getting approval meant faxing or physically bringing a document to the owner, project manager, designer, or another party for a signature. If there were issues with the proposal or document, the courier would head back to the drawing board, draw up a new document, and track down the signature again. 

Obviously, this is slow, tedious, and inefficient. In a business with thin margins and tight deadlines, moving to an automated method of gathering signatures makes much more sense. Thankfully, we now have the electronic approval.

How Electronic Approvals Work

Electronic approvals serve the same purpose as traditional approvals, yet they benefit from supercharged efficiency. These approvals automatically head directly to the person who needs to review them. They’re often built into documents, allowing the user to open them on a computer or mobile device, sign them, and send them back in real-time. 

To make this process even faster and smoother, system administrators can set up automatic workflows that trigger alerts anytime someone does something that requires approval. And, to drill down even deeper, these administrators can often program which types of decisions need approval. They can opt for or against approvals for budget transfers, change orders, payment applications, compliance acceptances, and a number of other documents and processes. 

The Benefits of Using Electronic Approvals

There are lots of benefits of using electronic approvals. The obvious advantage is speed, but convenience and accuracy should both rank high on the list.

Electronic approvals are fast. Generating themselves automatically, they’re on the way to gathering a signature the moment that an event triggers them. This allows the company to work faster and more efficiently without adding additional staff.

Not only are electronic approvals great for intercompany transactions, they’re also a bonus for customers. Rather than taking time out of their day to head to a fax machine or print, sign, scan, and send a document via email, they can handle the approval from their mobile device. This convenience makes customers more responsive and improves communication.

Accuracy is also a major factor. Whenever there is a human inputting data or drawing up documents, there is potential for a small mistake or oversight. They might even misplace the document or forget to send it (or that they sent it in the first place). With electronic approvals, as long as the contact information is correct, the other party is sure to receive it. And, if they don’t sign it right away, the system can keep track and send reminders and alerts.

Electronic Approvals: Improving Synergy in Every Role

Speed, convenience, communication, and accuracy build synergy, and electronic approvals are no exception. These tools improve the lives of everyone involved in the project, from folks working in the office to the people on-site—even the project owner. Everyone feels the benefits of synergy.

Project Management

Electronic approvals make a massive impact on the way that project management teams perform. As they always seem to be putting out fires, having access to instant approvals on the fly is imperative.

Consider a cost overrun due to a materials shortage. First, the project management team might need to shift the budget from one line item to another, so they’ll need approval from the accounting department. Or, the architect might need to choose a different material, and they’ll need to send a change order to the project owner.

Regardless of the reason, the project management team can send and receive electronic approvals in seconds, allowing the project to move forward and avoid significant delay.

Finance and Accounting

Financing and accounting departments have some critical roles to play, keeping an eye on profitability and ensuring the company has the resources it needs to succeed. And, the type of clarity electronic approvals offers these departments allows them to see the whole picture.

As projects progress, delays, shortages, and changes can take the established budget and turn it on end. With electronic approvals generating automatically, the accounting department will always know where the money is going, who’s moving it, and what for. This improves communication, creates accountability, reduces errors and redundancy, and ultimately protects the company’s profits. 

Field Personnel and Subcontractors

The boots on the ground physically constructing the building benefit from electronic approvals, as well. While these folks might be top-notch problem solvers, they often need the approval of the project management team or designer to move forward.

Let’s envision that there is an issue with the on-site conditions, and the field personnel won’t be able to construct a wall according to the plan. The field personnel can submit an RFI to the architect. This RFI will state the issue and propose a solution, and with electronic approval, give the architect the ability to approve or disapprove in real-time. 

And, one of the most important electronic approvals involves on-site personnel. Modern construction companies often allow subs to submit their pay apps online, saving time and frustration. A few folks within the different departments have to put their eyes on these applications, and each can approve or deny the app with electronic approval. This reduces the amount of time it takes the sub to get paid, making them happier and more willing to work with the construction company again—once again, improving overall synergy.

Project Owners

Some of the most frustrating things for project owners who don’t typically work in the construction space are the constant changes and paperwork. While they might have the architect or designer handling most of the issues, they still need to be available to make some decisions. Often, this means taking time out of their day to meet with contractors to review paperwork.

With electronic approvals, project owners don’t have to feel so overwhelmed. All of the documents they need are at their fingertips. They can quickly provide electronic approval through their mobile device. This can help relieve some of the tension, stress, and confusion that many project owners suffer during the construction process. And, since electronic approvals improve communication, project owners will always feel like they’re in the know.

Automated Workflows and Improved Synergy? Yes, Please

Ultimately, electronic approvals are excellent tools for building a better running, more efficient, more cohesive construction company. They keep everyone in the loop, allow for instant responses and improved communication, and minimize the chances of mistakes or errors. Who wouldn’t want those for the company, employees, projects, and clients?

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:

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.