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.
As more and more states relax pandemic restrictions, the construction industry is beginning to return to normal. All be it a new normal, as contractors continue to struggle with material shortages, higher prices, and a labor shortage. Still, most economists predict that construction will continue to rise throughout 2022.
American Institute of Architects (AIA) Construction Forecast predicts that non-residential construction will go up 4.6% in 2022.
Global Construction Perspectives says construction will continue to grow by 2.3% per year, and by 2030 will reach $16.6 trillion.
Looking at 2022, I would say I’m nervously optimistic. Nonresidential construction, by and large, seems to have passed the low point and is on an upswing.
– Ken Simonson, Chief Economist for the Associated General Contractors of America
With the passing of the infrastructure bill, many large federal projects are expected to go online in the 3rd and 4th quarters of 2022, giving a much-needed boost to the industry.
“I think that 2022 is going to be very busy for you all,” says Anirban Basu, chief economist for Associated Builders and Contractors and CEO of consulting firm Sage Policy Group. “Think very long and hard before you enter into contractual obligations. Make sure you build enough margin and contingency.”
Basu predicts a rise in state and local spending on construction going forward, including school construction. Contractors will need to ramp up their operations to handle the influx of available work.
“I think, to be successful, it’s going to help to be bigger,” he says. “Significant technologies are more expensive, and recruiting costs are significant, and training costs are significant. It’s nice to have a larger line of credit and more bonding capacity to go after some of these large-scale projects that are coming down the pipe, whether in infrastructure or other segments.”
The continued increase in volume can be tied to the effects of the pandemic both on the industry and the general population. “The impact of COVID has been far from equal,” notes Global Construction Perspectives director Mike Betts. “In most countries it’s been negative but in some, it’s been positive as working from home has encouraged people to invest more in their homes.”
This investment has led to a steady recovery for the industry over the past year and a half.
Continuing challenges
However, we aren’t out of the woods yet. Many contractors are struggling with the residual effects of COVID shutdowns that occurred two years ago. Workers and building materials are hard to come by and are more expensive than they were before the pandemic began.
Labor shortage
The construction industry continues to struggle with bringing new talent to the industry. The perception of construction jobs as dirty and physically demanding may be a part of the problem, along with the societal view that students graduating from high school should all want to seek a college education. The fact is that college isn’t for everyone, and construction careers can be performed by anyone given enough training. Most journeymen tradespeople get paid more than their college-educated friends and don’t have the tuition debt to show for it.
In the industry, there were 345,000 unfilled jobs at the end of November 2021. That was actually down from October when openings hit an all-time high of 455,000, but up from 261,000 a year earlier, a 32% jump, according to the Bureau of Labor Statistics.
One of the answers some companies are pursuing is the adoption of technology. Today’s young workers grew up with technology, so they are more comfortable with it than past generations. Contractors are recruiting young workers to help with scheduling, estimating, and project management, which most companies use software for. Upcoming tech for virtual reality, drones, robotics, and building information modeling (BIM) is driving the surge of young people to the industry.
Supply chain issues
A combination of production and shipping delays and rising material prices has created a problem for contractors on current projects. Production stoppages due to the pandemic and trucking and shipping disputes have caused project delays and price increases.
“The good news is we are starting to see factory output come back to close to where it was prior to the pandemic,” Richard Branch, chief economist at Dodge Data & Analytics said. “That should help the supply side, and if we start to see some improvements with the log jams at ports, perhaps by the backside of 2022, we might see some reprieve from these higher prices.”
“I’ve gotten more optimistic about material prices,” Simonson said. He doesn’t expect them to return to pre-pandemic levels but anticipates more up and down volatility, which is better than the upward swing many material prices took through 2021.
Some contractors dealt with the material shortage by stockpiling materials they used on a regular basis. Unfortunately, this is exacerbating the current supply crunch.
Some of it is a shortage, and some of it is shipping, but some of it is still a little bit of fear, where people are buying products to try to protect themselves. That’s driving up the demand, which does not help the overall industry.
– Deron Brown, President & COO of U.S. Operations for Edmonton, Canada-based PCL Construction
Experts don’t see supply chain issues being resolved completely until sometime in 2023. Contractors need to keep this in mind and be proactive with purchasing to ensure project timelines are met.
Positive outlook
Overall, it appears that the construction industry is set to continue its rebound. Contractors are learning to deal with shortages in labor and materials, and these will continue to be problematic. Adopting technology, like project management software, can attract younger workers and make systems more efficient, reducing company overhead costs.
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.
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.
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.
We have all heard the saying time is money. This especially holds true in the construction industry where one small setback has the ability to derail an entire project off course, both financially and time wise.
Requests for information, or more commonly known as RFIs, are more than just inquiries about a current project. They are a formal written process that documents the clarification of plans, drawings, specifications and agreements between contractors, designer, supplier, subcontractors etc. It can be used to discuss construction items, timing and schedule, design change or clarification, change in process, omissions in specs or plans, material change, value engineering, utility conflict and or any other issues.
RFIs are a project management tracking tool to keep all these documents traced and recorded for both legal and organizational purposes so you can build correctly and deliver high-quality projects on time and on budget.
However, when it comes to managing RFIs, many construction businesses struggle to do so effectively. There can be hundreds of pending RFIs and if there isn’t a process in place to manage them, information might be missed, or documents might end up lost.
With the help of construction management software, this process has become a lot easier for construction businesses to control. To fully optimize your process, here are a few best practices to keep in mind.
Best practices for sending an RFI in construction management software
Before sending an RFI, you should be able to answer the 5 W’s & H.
Who will be impacted and who should be involved?
What is the issue and what tasks must be completed?
Where on the job site/drawings/is the budget impacted?
Why is this important- is there a time, cost or legal implication?
When is the response required and when are the impacted parties to be informed by?
How will the issue be resolved? How are you proposing it be resolved? How does this impact the job? Is there a change order, budget transfer etc.
Provide enough detail. If there is not enough information this can cause confusion and delay the project, as more time will be required for clarification. Avoid vague and generic comments and clearly identify the issue or inquiry that must be resolved. Provide some background information but ensure you only include relevant facts that pertain to the question you have asked.
Provide relevant documentation such as images, drawings or other documentation. Do not include unnecessary documents or information as this can confuse the recipient.
To avoid further delays, send requests as soon as you discover the need for additional information so this way, you have all the supporting documents.
Limit each RFI to 1 topic. This will prevent questions from slipping through the cracks. If there is information overload and too many topics in the RFI there is a risk that no answer will be received and the project could become delayed.
When choosing recipients to include, ensure you are not including the wrong person. Only those who are directly involved should be included. This means anyone who was not involved or will not be impacted by the request should be excluded to avoid confusion.
There may be scenarios when you receive an RFI such as when you’re working with subcontractors. It’s important that you also respond accordingly to ensure there are no confusions or delays.
Tips for responding to RFIs in construction project management software
Always provide a definitive response and leave nothing to interpretation. When multiple options are presented there is a risk that different approaches will be followed by multiple recipients. Clearly state your recommendation I.e. use clear verbiage such as “We will paint the room blue”, instead of “We can paint the room red or blue. I like blue”.
Do not guess at what the issuer is trying to ask. Ensure you research the issue or ask relevant questions via a documented email. Verbal conversations are okay, but bear in mind paper trails such as emails between recipients can hold more credibility in case of a dispute.
Respond in a timely fashion. The rule of thumb is to respond back within a week. The longer the questions go unanswered, the bigger chance of delay.
Managing RFIs in Premier Construction Software
Premier Construction Software makes it easier than ever for construction companies to manage RFIs all from one platform. Premier allows you to create RFIs, track responses, and view all applicable RFI’s for specific jobs.
By sending emails directly from the software, Premier helps minimize the no-response rate which is a likely cause of disputes in contracts. You can efficiently and conveniently track who you have received responses from and send reminder emails to those who have not. The system will automatically update the status of the RFI once the user responds. Users also have the option to manually add responses that could have taken place verbally over the phone.
Premier also offers the flexibility to attach documents and drawings to RFIs. This ensures everyone involved has the information required to effectively make a decision and no documents are lost. For a quick audit on the status of all RFIs, users can easily generate reports for different jobs to review outstanding responses, and address pending items as quickly as possible to help avoid delays.
To learn more about Premier Construction Software and how it can improve your RFI process, get in touch with us today.
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.
Author Biography:
2. Distractions
Premier Construction Software makes it easier than ever for construction companies to manage RFIs all from one platform.