Setbacks such as supply chain volatility and rising energy prices are putting pressure on residential construction profit margins. And for many construction companies that were operating on slim profit margins before these setbacks, even the smallest cost overruns can result in money-losing projects.
Companies around the world are investing in digital construction technology, such as construction management software, to protect their profit margins.
We’ll explore three ways this technology is keeping the home construction industry profitable.
1. Enable efficient collaboration through digital construction technology
It wasn't long ago that construction teams relied on email, WhatsApp, Excel, etc. to make changes to the project, track progress, and answer questions.
Today, with mobile apps and cloud-based software, construction professionals can collaborate and communicate much more efficiently.
One of the most significant impacts digital construction technology has on collaboration is providing the ability to collect and store data in a single source. This allows your team members to make changes, leave comments, and respond to messages in real time.
However, this technology has an even greater benefit: everyone involved in the project can check its progress, allowing interested parties to give their opinion on important decisions as soon as necessary.
With the right software, contractors, clients, project managers and other stakeholders can easily work together to create real value and complete residential projects on time and on budget – something the industry continues to struggle with.
Simplifying your company's processes to enable more efficient collaboration with construction technology is a surefire way to maintain your home construction profit margin by reducing rework, improving construction quality, and enhancing cost control for each project.
Projects can easily go off track due to a lack of communication between stakeholders. Don't let your profits suffer when digital construction technology can allow your team to exchange information in real time, receive automated notifications, and check project progress at any time.
2. Eliminate design uncertainty using building information modeling
A small change can affect the outcome of your residential project – you've probably been there before. But by improving your project management processes, you can resolve these issues faster.
With digital construction technology, construction teams can see the impact on their profit margins in real time, making hypothetical changes and gaining insights from the data collected. This allows them to make more cost-effective decisions.
It also allows stakeholders to detect potential problems before they happen, allowing them to better plan their construction activities and make adjustments before a problem occurs.
Building information modeling (BIM) software can do much more than create 3D models – you can use it to improve your internal and external processes to reduce project uncertainty, work more efficiently, and maintain your profit margins in residential construction.
BIM software acts as a single source of information that is accessible to all stakeholders throughout the project lifecycle. This information consists of everything needed to eliminate project uncertainty, including accurate models, drawings, and specifications.
One of the best use cases for BIM, which is often overlooked, is clash detection: you can save time and money on your projects by detecting design clashes and construction issues early, minimizing their impact on the project plan.
With the right BIM solution, you can control residential construction profit margins by improving time management, coordination and productivity to reduce the risk of delays and errors.
3. Improve customer relationships with cloud-based applications
Every home builder knows that their customers don't want messages full of data they don't care about. What they want is access to relevant information, a real-time view of project progress, and an easy way to give their opinion on projects.
And with digital construction technology, capturing and sharing real-time data has never been easier, giving construction professionals a seamless way to collaborate with their clients.
You can have as many dashboards and reports as you want showing your site's progress, but without the right tools, they often obscure what's really happening on your site. So what do customers do? They visit the site to check the construction progress and quality. This can not only frustrate your customers, but also slow down progress when they constantly show up unannounced.
Instead, give your clients access to sketches and models through an app or online portal to streamline the approval process and keep them updated on the latest project progress.
So implement cloud-based digital construction technology today to keep your customers informed and provide them with a finished project that delivers real value without frequent change orders that eat into your home construction profit margins.
Maintain your profit margin in residential construction with the right technology
Many homebuilders and construction companies haven't invested in digital construction technology – they wonder if it's really worth the cost and worry that their staff won't actually use the software.
Now that you've seen how cloud-based solutions can help maintain your home construction profit margins, you may be rethinking your investment in construction technology; It's a sensible decision for many companies.
