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Technically Speaking
BY FRED ODE
Editor’s Note: Looking for answers to your tech issues?
Send your construction-related technology questions to heyfred@foundationsoft.com.
Q: I’ve been running my own concrete
construction company for ten
years now. Recently, our job volume
has grown considerably. The trouble
is, I am losing track of what is happening
in the field. I need to know
when and where problems might be
surfacing, but I can’t possibly oversee
every crew and every field activity.
I hear other contractors talk about
how they are using software—like estimating, project management
and job costing—but I have no clue
which technology products would be
right for my business. Currently, we
use spreadsheets for estimating and
a basic accounting system for the
books. Where do you suggest I start?
Chuck
A:Sounds as though you are suffering
from classic contractor growing
pains. You know how to run your
jobs, but as your workload expands,
you can’t possibly keep track of all
the information needed to run them
effectively. And this is where technology
can help.
Although your business could benefit from any number of technology
products, your main problem appears
to be a lack of detailed job data, such
as labor productivity. Let’s assume,
using your estimating spreadsheets,
that you have established certain
productivity rates for your jobs. With
a good construction-specific accounting
system, your first step would be
to import your estimated costs along
with labor rates and quantities. The
job cost data is then updated with
every payroll and completed quantity
entry. That’s it. From there you will
get instant access to numerous production
reports as well as a projected
cost analysis report.
For the sake of example, let’s say
that you estimated finishing 60
square feet of concrete per man hour
for formwork. A week into the job, a
production per man hour report shows
that only 40 square feet per man hour
has been accomplished. What’s more,
a projected cost analysis report shows
what the final overall cost will be if
you continue on at that productivity
level. The good news: There is still
time to make corrections. You now
have the data on hand to ask more
questions (“Why are we behind here?”
“Which crew is under performing?” “Is
weather a factor?”) and make better
decisions.
In addition, a good construction-specific accounting system gives you
historical data for more accurate bidding
on future jobs. Looking over similar
projects, for instance, you may
discover that you have been making
assumptions about productivity that
do not stand up to the data. Good job
costing numbers simply don’t lie.
Keeping track of labor productivity
and other job data is key to managing
your jobs and staying competitive.
But don’t underestimate what
you will need to do make it happen.
Technology products will work only if
you have the people and the processes
in place to take advantage of their
time and cost-saving efficiencies.
Fred
Disclaimer: Technically Speaking
reserves the right to change names and
edit questions for privacy, length, and
readability issues.
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