Published on:
June 7, 2023
Developer-Owners and Construction Managers are no strangers to the challenges that come with managing projects traditionally. By “traditionally,” we mean with paper forms, shared spreadsheets, and email & direct messaging coordination.
With a multitude of processes and teams to manage, the industry has seen a growing trend toward digitization in recent years. Investing in a unified construction management platform to manage the entire construction operations can bring about significant benefits such as improved communication, streamlined workflows, and better project visibility. However, not all construction management platforms are made the same, and it’s critical for companies to choose the right platform because a) it’s a significant investment – this is no Trello subscription – and b) successful adoption requires additional investment in time, effort, and sometimes money. Therefore, you need to give the decision-making process a bit more attention and not just do a tick-box approach of features and functions.
While modules are important, Construction Managers should also consider major factors relating to implementation such as how the platform integrates with their existing systems, the price, and the potential return on investment. These key factors would make-or-break the success of adopting a construction management platform: 1) easy to use; 2) easy to implement; 3) easy access while on a job site; 4) acceptable pricing model and 5) quick productivity improvement.
These factors (let’s call them “Digital Success Factors” draw from this TechCrunch article that we strongly recommend you read if you’re considering implementing a construction management platform.
In this article, we'll delve into these big factors that you should not ignore when selecting a construction management platform to manage projects. Let's get started:
Oftentimes companies fail to adopt a construction management platform simply because the product is too big/complex to implement. The best-in-class platform allows you to roll out one module at a time, one project at a time. What this does is help you REALIZE VALUE as quickly as possible - solving your most pressing challenges in construction projects. This also makes it easier to request for additional budget to expand the rollout because the ROI is already well-established.
Connected to be modular in nature, an ideal platform also enables incredibly fast rollout. It may be uncommon, but it is possible. Sure, basic task management tools can be rolled out in a few hours. But a complex solution such as project management takes at least a few months to go live. Just remember: the faster the implementation, the better.
One of the biggest hurdles in technology adoption in construction (or any industry for that matter) is the amount of time taken away from end-users doing their day-to-day activities in order to undergo training. Training should be done in a few days AT MOST. Also, a platform with a “train-the-trainer” model is ideal because that makes it easy and fast to train new team members or 3rd-party project stakeholders.
One major reason companies’ implementation of construction management platform failed is “ease of use.” While UI/UX plays one factor in this, what is more, critical is the ability of the software to connect with existing tools, conform to companies’ unique processes, and expand/add new modules that these unique processes also require. What Construction Managers should look out for is easy configuration of integration points. Furthermore, being able to easy to automate processes and extend or create new modules would be great because each construction project has unique needs that would also need custom process automation or additional modules that would make the solution “complete.” One of the reasons end-users adopt software unsuccessfully is the feeling that the product is “incomplete,” aka it lacks certain features/modules that are deemed critical for them.
That same TechCrunch article pointed out that being able to address project variations will be key in successfully rolling out any kind of construction technology beyond the back office. That’s why flexibility to allow rapid customization is critical to successfully adopt a construction management platform.
As mentioned in the TechCrunch article, construction projects are capital-intensive. This means companies prefer a pay-as-you-go model in pretty much anything that allows that - including software. Construction Managers should look into a construction management platform that has a per-user SaaS model, which means it’s a flat rate per user vs others charging companies on the basis of annual construction volume, is ideal.
Having a subscription-type pricing model also helps in establishing a clearer ROI because it’s easier to measure productivity gains on an individual level than just looking at the project as a whole. This brings us to the next point.
Calculating ROI for construction management platform can be a little tricky - mainly because there are so many layers to consider. But on a solution level, like a project management solution within the platform, calculating the ROI can be easier. We recommend mapping out your process and assigning a time duration for each step of the process. Then, as you rollout your project management solution, you can measure the time it takes for each step (or note if certain steps have been eliminated because of automation). This will give you productivity gains that are measurable to arrive at an acceptable ROI.
This does not even account for the massive savings from having a more efficient operation, such as fewer mistakes in data gathering, tighter control of schedules and budgets, etc.
While there is no standard ROI figure to look out for, Construction Managers should at the very least make sure the platform will pay for itself.
While digitizing construction management is the only way to go for Construction Managers to thrive in the post-pandemic world, choosing the right construction management platform is important. It should not only have the right modules but also ensure successful adoption. Careful evaluation and consideration of these digital success factors can help Construction Managers select a platform that meets their needs and provide long-term benefits for their business. We at Steer believe that our platform provides the features you will need to adopt digital solutions for your construction projects successfully.
