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2 Minute Read
August 5, 2020
Stop Leaving Cash on the Table: Reducing Construction Profit Fade
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How to better leverage construction data to minimize profit fade and start earning more cash instead of leaving it behind.
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Picture this: after a long, rainy morning commute, you pull up to a jobsite to review a few project delays (due to weather) with your client. You are walking through the jobsite to specifically show the progress your team has made. The customer thinks that adding an additional interior wall would create more privacy in the building you are constructing. You work out the verbal details with the client and your foreman and work on the new additions will begin soon.
As you walk away from the customer and the jobsite, you receive a phone call about another project with a possible safety issue that needs to be addressed immediately. You hop in your vehicle and head to that job site to address the issue — forgetting about the additional wall you agreed to build. Afterall, safety first, right?
The Outcome: Profit Fade
What was specifically missed? You guessed it! A change order was not generated. Considering the wall addition was not recorded or entered into a construction management system, a charge order was not created. So, your teams are doing the work, but the contract is not properly adjusted and you endure the costs while leaving profit on the table.
Unfortunately, this happens a lot in our industry with construction organizations that utilize manual processes. There is too much to keep track of in such a short amount of precious time.
Of course, missed change orders, an estimate that was overly optimistic, costs that are out-of-control due to hiring a more expansive team, misordering of materials, or work that was tracked appropriately are all issues that can lead to profit fade.
But as contractors work smarter and become more data driven, these types of challenges can be alleviated. Modern, connected software solutions, real time construction data tracking and analysis, automated, collaborative workflows and more are all examples of how technology is making sense of the piles of construction data every project produces so that contractors like you can make more informed decisions, faster, and catch profit fade early.
Take 15 Webinar: Preventing Profit Fade
In just 15 minutes, Geoffrey Falk, senior product manager for Viewpoint’s Spectrum construction management solution, will guide you on how to use the data derived from modern construction technology to reduce profit fade.
Specifically, you’ll gain clarity on how to:
-Use Viewpoint’s construction data analytic tools to create analysis reports that can drill down into your company’s projects and phases for better project insights
-Utilize intuitive data cubes and easy, self-serve, drag-and-drop reporting features to pull information like company, job code, job description and cost to date related to specific projects to give you the information you need quickly
-Use specific construction data to compare a current estimate to actual project costs and see the difference so you can better understand project costs and profit fade potential in real time
By leveraging the cloud to provide virtually anywhere, anytime access, Spectrum also allows you to manage on the go. Update project data and projected costs, streamline project tasks, stay on top of change management, quickly analyze the health of your projects from real-time dashboards and much more — all from a mobile device! This helps you stay on top of your projects, mitigate risks, and, ultimately, prevent costly profit fade.
Learn how in the Take 15 webinar below:
To learn more about how ViewpointOne can help you put cash in your pocket instead of leaving it on the table, contact us. You’ll also learn how to utilize modern technology and data to help your organization become more profitable.
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