Improving operational efficiency in construction projects is one of the primary goals of a construction project manager. Many construction management companies invest hundreds and thousands of dollars into improving their internal processes. However, most construction management companies now invest in construction project management software to help deal with the complex tasks of managing a construction project.
If you are a construction project manager, your main aim is to complete the project smoothly while minimizing any problems such as delays, risks, site issues, etc. however, if you have worked in a construction management company for a while, you must already know that every construction project is different. There are many variables in construction projects that determine their timeline, efficiency, and success. Economic, technical, legal, budgetary, and time constraints define how a construction project progresses. There is no defined methodology that a construction management company can follow to ensure or even predict how accurately the project will go. Therefore, to improve operational efficiency in construction projects, managers opt for construction project management software. A construction management software helps construction management companies create enhanced, effective, and cost-efficient operational practices and helps them avoid mistakes they made in their previous projects.
In this blog post, we will discuss what operational efficiency entails in a construction project. We will also learn how construction project management software can help you achieve operational efficiency in construction projects.
What is operational efficiency for a construction management company?
In mathematical terms, operational efficiency in construction is the ratio of the estimated profit against the operating expenses. To be more precise, construction project managers define operational efficiency. How cost-effective a company can be while maintaining the quality of the project. One of the most common ways construction companies try to accomplish efficiency is by minimizing operational waste such as defected material, unproductive workforce, complex task flows, etc.
However, it is essential to understand that managers cannot reduce costs without completely understanding how their current operating processes work. They need to review workflows and analyse the current system to increase operational efficiency in construction projects. Once the project manager reviews and analyses the inefficiencies that hold back a project, he can work on eliminating them.
Why do companies prioritize operational efficiency?
So why do companies prioritize operational efficiency in construction? The answer is simple, a operational efficiency ensure a more sustainable business in the long run. It helps streamline processes, reduce errors and overall optimizes every aspect of the construction business. This is precisely why many construction projects now utilize a construction project management software – to increase efficiency. Most construction management companies think their operations are doing fine since their processes are running smoothly, but that does not mean that there is no room for further operational efficiency in their construction projects! They can still reach greater heights by implementing new practices or solutions. Construction projects are highly competitive in today’s AEC landscape and often fall short of expectations due to budget restrictions, lack of time, etc. Due to this, the effort, time, and money of all involved stakeholders, be it suppliers, contractors, subcontractors, or clients, is wasted.
Factors Causing Operational Inefficiencies:
This section of our article will discuss the top five factors that can cause inefficiencies in construction projects.
Inefficient construction project management
It is no surprise that for operational efficiency in construction projects, you need to take a long hard look at your processes. Inadequate project management has severe consequences for a construction management company. It causes project cost overruns, scheduling conflicts, unproductivity, and delayed project deadlines! These factors give the company a bad name – which means the company may lose contracts and have trouble finding new projects.
Complicated Workflow Processes
Complicated workflows are a big no for companies that want to be streamlined, optimized, and efficient with construction projects. If your workflow process is not planned thoroughly, you will find yourself lacking information, underutilized resources, and material, equipment, and labour scheduling conflicts. Even though most companies use construction project management software for workflows, they cannot streamline their workflows if they do not choose a complete system that offers single source of truth. Many companies pick much different software for different functions which results in siloes data and many disjointed applications.
Inadequate Task Management For a project manager assigning and supervising duties is perhaps one of the most challenging tasks. They need to decide what amount of workforce should be allotted per activity to guarantee completion within the agreed-upon timeline. Furthermore, project managers need to make sure they don’t overwork or underwork employees.
Document and data storage and sharing inefficiency
Inadequate documentation results in miscommunication between team members and also causes mismanagement of the project tasks. For example, change orders are a specific pain point for general contractors and project managers. The reason is that change orders are often overlooked due to missing documentation and take up a lot of time for the managers. Such problems prevent operational efficiency in construction projects as a lot of time, energy, and resources are wasted tracking documentation. Furthermore, disparate data storage for project documentation is also a pain point for construction management companies. Documentation is essential for a project, and all stakeholders must have access to necessary data, whether on-site or at the office.
Material and equipment problems
Equipment and material drawbacks not only waste time but are also costly for a construction management company. Time and money go into managing and tracking delivery and availability of items, which directly impacts the promised timeline of the project. The more delays in a project, the higher the overall cost. Equipment is costly, and most companies rent out machinery for projects.
Boosting operational efficiency with a construction project management software:
By now, you can see why operational efficiency in construction is essential. The best way to overcome all these problems is to invest in proper construction project management software! Companies can streamline, optimize, and automate critical processes and save time, resources, and money with construction management software! A good construction management solution can provide a construction management company with the following benefits:
- Centralized project data management
- Streamlined communication among stakeholders
- Automated workflows for process and data management
- Enhanced workflow processes across the project lifecycle
- Improved employee productivity
- Optimal utilization of resources
- Cost management
- Improved visibility
Project manager’s focus on improving operational efficiency in their construction projects to reduce costs and improve profits without compromising on the quality of the project. In today’s AEC landscape, it is not enough for project managers to follow a strict cost management process to manage their ongoing and future projects efficiently. Project managers now need to take steps to ensure they have a system in place that helps streamline the entire construction project lifecycle from start to finish. Project managers can implement techniques and solutions that are as seamless as possible to safeguard their businesses sustainability and success in the long run.