Construction Industry Overspending Revealed As Major Annual Cost

Construction Industry Overspending Revealed As Major Annual Cost

Construction industry overspending comes in many forms, but the cost of mismanaged information is one expense that could be easily controlled. With the modern features of construction operations management software, keeping up with project data has never been easier. Accurate, reliable and traceable information management provides a real-time solution to a very old problem within the construction industry. It is the tool that eliminates the errors associated with pen-to-paper and obsolete spreadsheet data forms as a means for controlling the ever-evolving daily construction work process. Failure to take hold of construction-focused technology often results in:

  • Lags in receipt of critical operational changes
  • Poor project efficiency
  • Outdated documentation
  • Excessive reworks
  • Redundant allocation of workforce and other assets
  • AND many other cost-intensive mistakes.

New Study Identifies Major Annual Expense Related To Construction Industry Overspending

According to PlanGrid, the annual U.S. construction industry overspending may be costing contractors more than $177 billion in excess rework, loss of productivity and misdirected resources. Such findings align with an earlier report by U.S. Department of Commerce Technology Administration wherein small companies in failing to adopt advanced information technologies create excessive complications within the overall ability to operate as a single unit. It is about removing the operational inefficiencies related to the likes of:

  • Manual reentry of data
  • Manual updating of critical details
  • Redundancy of operational functions
  • AND a relentless dependency on paper-oriented information management systems.

Key findings of the New Construction Industry Overspending Report

1) Excessive weekly waste of construction workforce resources due to efforts to solve avoidable issues.

  • Gaining access to project information that should be readily available results in 5+ hours waste each week
  • Managing project conflicts and disagreements sucks up another 4+ hours
  • AND correcting rework-linked activities cost yet another f4 hours of wasted workweek.

2) Poor communication primary cause of unnecessary rework. According to the study, miscommunication of project-related details accounts for 48% of the project reworks within the U.S. construction industry.
3) The construction workforce tends to make insufficient use of available mobile technology and IT resources. Even when companies provide modern tools, they fail to ensure that the workforce effectively leverages the software, the real-time features of mobile technology and other potential areas of gain.
4) Investment in construction-oriented data management resources is on the rise as a means for increasing jobsite productivity. However, there appears to be a disconnection between the availability of technology and the application of technology. To deal with this, contractors must include end-users in the decision-making processes. Provide the tools while also ensuring that teams understand the benefits of using such tools.

About Assignar Construction Operations Management Software

We offer resource-scheduling software for construction contractors. Our real-time data management tools provide Documents, Compliance, Asset & Workforce management, done simply. Try Assignar today!
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Construction Project Profit , Productivity in Construction