For construction professionals, value engineering is a term commonly associated with keeping projects on budget, but the full meaning of the term has been diluted.
Construction contractors can keep their businesses running efficiently and profitably by focusing on excelling in a few key areas. By making sure business aspects such as fleet management, safety, estimating and supply chain management are running smoothly, contractors can increase profits and improve business operations.
The person in charge of preconstruction essentially sets up the project for either success or failure. First, the preconstruction manager has the daunting task of developing an accurate, realistic budget to win the construction project, while also making a fair profit. Then, the preconstruction manager functions as one of the most important members of the construction team.
Construction input prices rebounded in December after experiencing a steep decline in November, according to analysis of U.S. Bureau of Labor Statistics data released today by Associated Builders and Contractors (ABC). Input prices rose 0.4 percent for the month and are up 2.1 percent year over year, the largest 12-month increase in 30 months.
The Art and Science of Estimating Reliable Estimates Require Deeper Investigation and Careful Calculation
Estimating construction costs becomes not just a science, but an art, when one begins to address the variables that can affect those costs. Continue »
If construction reporting was simple as Revenue – Expense = Cash, we could all open up a spreadsheet and call it a day. But with job costing, bonding requirements, production tracking, burden and overhead, keeping an accurate pulse on a construction company is a lot more complicated. That’s why contractors need accounting and reporting software designed specifically for the industry they work in, and when they’re exploring accounting software solutions, they should expect several important reporting capabilities. Without these “must haves,” contractors will be missing key parts of the picture they need to run their businesses optimally. Continue »
Project portfolio management (PPM) is an emerging discipline in which a group of projects is analyzed, prioritized and collectively managed in a coordinated way. This approach allows project managers to reap benefits that would not be available if the projects were managed separately. It also allows them to periodically monitor the performance of projects in the light of changing conditions (e.g., finite resources, a changing marketplace or shifts in corporate strategy).
GPS tracking technology makes it possible for construction fleets to become more efficient by eliminating manual and time-consuming processes traditionally associated with fleet management. By automating processes such as maintenance, cost tracking and mobile data collection, fleets can work more efficiently and increase productivity.
Routinely comparing what is budgeted for versus what is spent for each item of work in progress is the only way to effectively control project costs. This comparison is the only way for project managers to identify and correct underperforming areas before they snowball and become costly, project-delaying issues.
Data is big. It’s big in a way beyond being a business buzzword. In our data-driven world, it’s become the crux of success. As a must-have component of strategic planning, construction companies can find themselves overwhelmed by a morass of types: industrial data, operational data, strategic data and remote data. Continue »
When it comes to construction contracts, all roads lead to and from the work breakdown structure (WBS). Not only is the WBS the strategic backbone of a project, it also provides a common framework for the natural development of the overall planning and control of a contract.
By benchmarking performance against set targets, assessing performance and evaluating success becomes easy. It also helps to close gaps and plan for improvements. Effective performance management involves developing measures and indicators, evaluating existing methods and procedures, improving quality, and implementing changes. Results found through different measures provide inputs to manage performance and lead to continuous improvement and better estimating, which makes it possible to win more bids.