Manual methods in construction are costing you money.
Here’s why.
Cloud-based technologies are rapidly transforming the construction business landscape. Operating models that were effective just 10 years ago are no longer practical. Manual methods (like scheduling with whiteboards and wall calendars) and outdated digital processes (like estimating in spreadsheets) now slow down processes instead of speeding them up.
If you’re still managing your construction company with manual construction methods or a mix of legacy software, it’s time to reconsider.
According to a study conducted by FMI Corporation, construction companies spend over 5 hours daily in meetings and looking for project data and information, wasting valuable time leading to costly project delays. So, if you aren’t strategically leveraging an all-in-one construction management solution to run your business, you’re not reaping the efficiencies and profits you could be.
Here are 5 ways manual construction methods and outdated processes are costing you productivity and profits.
1. Disjointed workflows cause rework in the field
When teams rely on manual methods and outdated digital systems, workflows are disjointed and communication siloes form. These siloes create barriers between different departments and teams, leading to misunderstandings and miscommunications.
For instance, if an architect makes design changes during a plan check but doesn’t effectively update relevant stakeholders, construction crews won’t know about the modifications. They’ll rely on their copy of outdated plans and start to build. As a result, they’ll need to redo a significant amount of work.
This very thing happened to ASI General Contractors before using RedTeam’s construction project management solutions.
2. Manual construction methods require double-entry and increase errors
Using manual methods requires entering the same data multiple times. For instance, project managers might track job progress on paper or in a siloed software program. Administrative staff may then have to reenter this data into separate spreadsheets or other accounting systems.
It’s time-consuming to keep the data synched this way. Plus, re-entering data and copying and pasting information from one place to another increases the likelihood of costly errors.
Using manual methods to transfer data, track hours worked or code materials to jobs can lead to costly mistakes and discrepancies. These disparities, in turn, can lead to incorrect billing, payroll issues, schedule delays, poor decision-making and more.
Caitlin Leibforth, Accountant/Project Coordinator at Remsing Construction Company, says, “[Before RedTeam] our billing software and our project management software were never in sync, so it was difficult to track direct costs accurately for each project.” After using RedTeam, her team only has to enter data once, so there’s no more confusion between Finance and Operations.
3. Difficulty accessing project information hampers productivity
According to a recent presentation by Jay Snyder, President at Big Blue Innovations, it’s not uncommon for large contracting firms to have 100 technology solutions in play at once. This means that valuable project data is spread out across all those platforms. Therefore, making it difficult to find pertinent information when you need it most.
Using an all-in-one solution like RedTeam’s gives you the ability to streamline your tech stack. Consequently, you won’t have to spend hours juggling and managing a myriad of platforms. Plus, most of your necessary tools are in one place from the start. That means you’ll have a better-connected ecosystem that drives productivity instead of slowing it down.
4. Cumbersome processes mean wasted time on busy work
Tasks like scheduling, resource allocation and progress tracking take longer when entered and reentered by hand. In turn, this lessens the time available for productive work.
These time-consuming manual construction methods can also lead to project delays, which can snowball into missed deadlines and potential financial penalties. Automating repetitive administrative processes frees up valuable time for individuals and teams to focus on profit-driving activities. Whether those are business development, client relations or on-site project management.
For instance, project managers can focus on ensuring projects stay on schedule and within budget rather than chasing down paperwork. Similarly, administrators can reinvest time previously spent on redundant busy work to manage more strategic tasks, such as analyzing performance and identifying areas for improvement.
Devin Morris, Project Manager at T&G Constructors, says, “With [RedTeam], you know where subcontractors are with billing and invoicing and can approve the documentation in a matter of seconds. Before, I would spend a couple of days reviewing invoices, around 8 hours of my week. [Now], I only spend one hour reviewing them. So, 1/8th of the time.”
5. Manual processes limit your ability to scale
As your business grows, the amount of data and the complexity of your operations also grow.
Manual processes have a natural limit when it comes to scaling. If you rely on spreadsheets, paper-based methods or disjointed digital solutions, it becomes difficult to manage larger projects or multiple projects at once. This means you might need to hire more people to handle the increased workload, which can hinder your growth potential. Especially in light of the current labor shortage.
In contrast, modern construction management solutions can efficiently handle large amounts of data, which allows you to manage more projects with the same or even fewer resources.
For example, Conseco Group used RedTeam Go during the pandemic to make up for months of pandemic-related delays. In fact, they completed $80 million worth of work in one quarter—10 times their normal amount—even with a reduced staff.
“Without RedTeam [Go], we couldn’t have successfully completed that volume of projects the way we did it,” says Conseco’s CEO, Phil Pace. “It would have been too much to handle.”
Work smarter and grow faster with RedTeam
Embracing technology isn’t just a trend—it’s a crucial strategy for construction businesses aiming to excel in today’s market.
Adopting construction project management software can streamline your operations, reduce errors and boost collaboration. Features like real-time data access, integrated communication tools and automated processes enhance efficiency and effectiveness.
This doesn’t just lead to better project results. It also primes your company for growth. By handling tasks more efficiently, you can take on additional projects, win new clients and bolster profitability.
Want to see if RedTeam is right for your company? Watch a demo
