When is it Time to Ditch Manual Construction Project Management Spreadsheets?
Change doesn’t guarantee success or improvement. Change for the sake of change can lead to disruption, but does it also lead to growth? Not necessarily. When a business follows this path, it’s bound to be disappointed with the results. What else is a recipe for mediocrity? Doing things the same way because ‘that’s the way we’ve always done it.’
Is your construction management company considering switching from manual spreadsheets to project management software? Consider the points below to determine if now is the right time to make the switch to project management software.
Comfortable is good, but…
We all have an old shirt or other pieces of clothing that we still wear on a regular basis. At one point, the shirt was crisp, clean, and fit just right. You liked the way you looked in it and were happy when you put it on.
The comfortable old shirt is good, but…
As time passed, the shirt might have become stretched. Perhaps it has a stain. Maybe it doesn’t fit you like it once did.
You hold on to it – partly out of nostalgia and partly because it fills a need and is good enough.
Moving on from manual project spreadsheets or Excel spreadsheets, like the old shirt, may cause consternation. Ditching a system that has worked and been an integral part of your construction business should be a big decision.
Being comfortable with a system, knowing its ins and outs, and having experience with it is valuable.
However, you should consider whether the manual/Excel spreadsheets are best serving your construction business. You need to use systems that will empower growth and maximize capital.
Construction project management software adoption is on the rise
The construction management software is massive and continually expanding.
In 2024, the global market for construction and design software was $10,964.8 million, and it’s projected to reach $19,116.7 million by 2030. The largest segment by function is project management and scheduling.
Those gigantic numbers make it seem as if every construction company is using software for some purpose. However, that’s not the case. Approximately 70% of construction firms utilize software for at least one function.
For what purpose are construction firms using software? Here’s a breakdown by function:
- Accounting – 85.4
- Estimating 60.4
- Project management 56.5
- Project scheduling 49.20
- CAD/BIM 45.2
- Take-off 45
- Bid management 33.6
- Client relationship management 25.1
- Prequalification tasks: 12.3
Despite the growing value of the construction software market, nearly 45% of firms are not using software for project management.
Why construction project management software outperforms spreadsheets
Construction firms are switching away from manual spreadsheets for many reasons. Let’s take a brief look at a few of the primary reasons.
Improve accuracy and avoid costly spreadsheet errors
There will inevitably be errors when manually entering data into a project management/Excel spreadsheets. It’s also very possible to make errors in formulas. The results of a survey found that “…90% of [Excel] spreadsheets used by construction companies contain clinical errors.”
If the data or formula entered is incorrect, the information drawn from it will be inaccurate. Inaccuracy can impact many areas, including the bottom line, which will harm your construction business.
Software automates the process, ensuring accuracy. Teams can feel confident in their decision-making as they are basing it on accurate information.
Increase speed without sacrificing resources
Even the most experienced employee can’t manually enter data onto a construction management timesheet as quickly as the automatic process that occurs with software.
As a sidenote, utilizing experienced employees to enter data manually limits the value of the employee. They could be putting their experience and know-how to a more valuable use.
The increased speed can help your construction companies meet tight deadlines and ensure you don’t miss bid opportunities.
Enhance team collaboration in real time
Construction is a team sport, so multiple people may need to interact with the project management spreadsheet. Manual/Excel spreadsheets are not easily shared and don’t support multiple users editing in real time.
Employees may end up working on different versions of the same document, causing confusion and potentially losing data. Each individual working on a different version of the document also encourages the siloing of data.
Cloud-based project management software facilitates collaboration, as multiple users can access and use the software simultaneously. Changes can be tracked to users, making it easier for colleagues to follow up with the right source when questions arise.
Scale your operations without breaking your system
As construction firms expand and take on larger or multiple projects at once, project management becomes increasingly challenging and complex.
Manual/Excel spreadsheets are typically not designed for rugged use. The excess burdens that come with growth may crash the system.
On the other hand, cloud-based project management software doesn’t face the same limitations. The platforms are built to scale with your construction business. Developers design construction project management software to grow with your business.
Questions to ask before switching to construction project management software
Let’s return to the question above. How do you know when it’s time to switch from manual/Excel spreadsheets to cloud-based project management software?
Here are some points to consider.
Is your construction company growing? If your company is growing, taking on more complex projects, and managing more projects simultaneously, cloud-based project management software can help ensure the expansion is successful. It also sets the ground for further growth.
Does your construction company struggle to meet deadlines? If you regularly stress about meeting deadlines and accomplishing all your necessary work, switching to cloud-based project management software will help.
Is your team working from various locations? If team members are not working side but instead are working remotely, cloud-based project management software will help keep them on the same page. Even if the entire team is under one roof, manual/Excel spreadsheets can still lead to the siloing of information.
Are you struggling to make sense of data? If you regularly find that the numbers don’t add up, and multiple reviews are necessary to ensure everything is accurate, cloud-based project management software is a solution. You can be confident that the data is correct, enabling you to make informed decisions with confidence.
Do you reach the end of a project and wonder why the margins did not meet expectations? If the profit margins on your construction projects regularly fall short, you need to study the formulas you’ve been working off and review past projects. Cloud-based project management software makes reviewing work easy. As a single source of truth, you have everything you need to identify issues and ensure future projects don’t fall short.
Manual/Excel spreadsheets serve a purpose. However, switching to cloud-based project management software would better serve many companies. The benefits of automation will help your construction company thrive.
Click here, and learn more about RedTeam’s cloud-based construction project management software.
