It’s no secret that the majority of construction projects overrun their budget. Indeed, research shows that 98% of building projects in the UK run into budget problems. Cutting costs and saving money is not always an easy task, particularly when you consider that around 70% of the budget is on repairs and maintenance, and just 20% on design, planning and construction.
Persuading construction companies to invest in technology-driven tools to help them save money when you’ve got these percentages can seem a bit like pushing water uphill. But that is exactly what can happen when data analytics are used to automate operations, thereby reducing the number of errors and improving efficiency.
Data’s role in managing budgets
With the coming of the digital age, data has become a key instrument in helping construction companies not only stay on time, but also within budgets on projects. In fact, with the introduction of business intelligence software and real time data analytics, how some construction companies are operating, on and off-site, has significantly changed, and for good.
Project managers are starting to utilise the valuable insights gathered from big data to help them make better, more informed decisions. BIM, or Building Information Modelling, is the latest technology tool that is making a name for itself in the construction industry. BIM enables project managers to use historical data on past projects to estimate more accurately the materials and labour required for future projects, as well as visualise time frames and calculate budgets. Having this real time analytical data ensures that future projects are cost-effective and sustainable, particularly with a greater focus on energy efficiency within construction, now and in the future.
A study by the Boston Consulting Group, using BIM within the construction industry to carry out a building-wide energy analysis can potentially save a project as much as 20% on energy costs. Added benefits include less material wasted and a better sustainable environment.
Data and the mobile workforce
The very nature of building sites is managing a mobile workforce. For a project manager who needs to split their time between the project’s stakeholders, their office team and their team on site is a bit like a juggling act. To have virtual ‘eyes on the ground’ can have significant benefits.
Using mobile technology and business intelligence software, project managers are able to gather and analyse critical construction site data in real time, giving them a valuable insight into a project’s progress, whether it’s meeting its deadlines, labour and material usage, as well as budget updates. Using this information enables more streamlined operations to improve efficiency, optimise time management with real time updates on project scope and schedules, as well as updating or adding essential documentation. No more paper trails that can easily get lost.
Data is becoming the key ingredient to running successful building projects; how you analyse the data and use it to improve a project’s outcome depends on different variables and the project’s strategies.
To help with your contract management, visit the MPS website to see how our unique CCM Contract Management System can revolutionise the way you do business please call 01223 597933 or email firstname.lastname@example.org We can also show you how to turn CCM data and other information into comprehensive interactive BI dashboards.