By: Rich Uphus | June 13, 2023
ARTICLE - The construction industry is no stranger to challenges. Still, as we move into 2023, new obstacles are emerging that are changing the game for construction management. From cloud-based construction accounting to automation of claim preparation, the industry is being transformed by technology.
We'll explore the top 10 challenges facing construction management in 2023 and how industry leaders are tackling them.
- Construction Accounting in Cloud
Cloud-based technology has become increasingly prevalent in the construction industry in recent years. According to a study by Software Advice, 67% of construction professionals currently use some form of cloud-based construction software. This figure is expected to rise in the coming years as construction management realizes the benefits of this technology, including real-time access to financial data and increased accuracy in reporting.
- 360° Visibility
Another major challenge facing construction management is achieving 360-degree visibility of projects. Construction projects are complex and involve multiple stakeholders, including architects, engineers, contractors, and subcontractors. According to a study by PlanGrid, 46% of construction professionals said the lack of visibility into project data is one of their biggest challenges. However, technology is helping to overcome this challenge. Cloud-based project management software provides real-time visibility into all aspects of a project, including schedules, budgets, and resources. This allows construction management to make informed decisions and take proactive measures to keep projects on track.
- Job Costing and Forecasting
Job costing and forecasting have always been critical components of construction management. However, the emergence of cloud-based technology has made these processes more complex. According to a report by Dodge Data & Analytics, 51% of contractors said that job costing is a significant challenge, while 60% said that accurate project forecasting is a challenge. However, this figure is expected to decline as construction management recognizes the benefits of this technology, including increased accuracy, real-time data, and improved collaboration among project stakeholders.
- Automation of Claim Preparation
Claim preparation is another area where technology significantly impacts construction management. Traditionally, this process has been manual and time-consuming, with construction management navigating complex legal processes to resolve disputes. However, the emergence of automated claim preparation software is changing the game. According to a study by the National Institute of Standards and Technology, construction companies can save up to 50% on claims preparation costs by using this technology.
- Elimination of Margin Erosion
Margin erosion has long been a challenge for construction management, with projects often going over budget due to unforeseen expenses. However, technology is helping to eliminate this problem by providing real-time data on project costs and resources. According to a study by FMI Corporation, construction companies that adopt technology to improve their processes can increase their profit margins by up to 10%.
The ability to scale projects quickly and efficiently is critical for construction management in 2023. However, this is easier said than done, as projects often involve multiple stakeholders and complex supply chains. According to a report by PlanGrid, 36% of construction professionals said that scaling projects is a major challenge. However, technology is helping to overcome this challenge. Cloud-based project management software provides construction management with a centralized platform to manage all aspects of a project, including supply chain management, scheduling, and resource allocation. This allows construction management to scale projects quickly and efficiently while maintaining high levels of quality.
- Quick Links to Vendor Pricing and Terms
Another challenge facing construction management is managing vendor pricing and terms. This can be time-consuming and lead to cost overruns and delays if not appropriately handled. According to a study by Construction Business Owner, 43% of contractors said managing vendor pricing and terms is one of their biggest purchasing challenges.
However, technology solves this challenge by providing quick links to vendor pricing and terms. Cloud-based project management software allows construction management to access vendor pricing and terms in real-time. This not only saves time but also helps to ensure that construction projects stay on budget and schedule. According to a study by JBKnowledge, 48% of construction professionals said that cloud-based software had improved their ability to access project data and communicate with project stakeholders.
- Automation of Schedule of Values
The schedule of values is a critical component of construction management, providing a detailed breakdown of project costs and resources. However, this process can be time-consuming and error-prone, leading to cost overruns and delays. Fortunately, technology is providing a solution to this challenge. Cloud-based project management software allows construction management to automate the schedule of values, reducing the time and cost associated with this process. This not only improves project efficiency but also improves the accuracy of project cost tracking.
- Timeline Management
One of the biggest challenges facing construction management in 2023 is timeline management. Construction projects are often subject to delays and setbacks, which can have significant cost implications. According to a study by KPMG, 70% of construction projects experience delays. However, technology is providing new tools for managing project timelines.
Cloud-based project management software allows construction management to create detailed project timelines, with real-time progress tracking against milestones. According to a report by PlanGrid, 50% of construction professionals said that using software to manage project schedules has reduced the number of schedule-related delays they experience.
- Future-Proof Technology
As construction management faces these challenges in 2023, it is vital to consider the role of future-proof technology. The construction industry constantly evolves, and construction management must adapt to new technologies and trends.
Cloud-based project management software is a future-proof technology that can help construction management stay ahead of the curve. According to a Dodge Data & Analytics study, 73% of construction professionals believe technology will significantly improve productivity and reduce project costs in the coming years.
FullClarity’s Construction for NetSuite: An Automated Cloud-Based Solution for 2023
Construction for NetSuite is a cloud-based construction management software solution designed to help construction professionals overcome their challenges in 2023. This solution provides a comprehensive set of tools for managing construction projects, including accounting, job costing, project management, and supply chain management.
Construction for NetSuite is natively built on the Oracle NetSuite platform, the #1 cloud ERP solution, and is gaining popularity in the construction industry. By leveraging the power of NetSuite, Construction for NetSuite provides construction management with a flexible and scalable platform for managing construction projects of any size or complexity.
One of the critical features of Construction for NetSuite is its ability to provide 360-degree visibility of construction projects. This solution allows construction management to track project progress in real-time, with access to real-time data on budgets, schedules, and resources. This helps construction management to make informed decisions and take proactive measures to keep projects on track.
Another key feature of Construction for NetSuite is its ability to automate manual processes, including job costing and scheduling. This solution saves construction management time and reduces errors by automating these critical processes, freeing staff to focus on more strategic tasks.
In addition to these features, Construction for NetSuite provides quick links to vendor pricing and terms, allowing construction management to manage vendor relationships more efficiently. This solution also includes advanced reporting capabilities, allowing construction management to generate customized reports on project progress, costs, and profitability.
A Final Word
Construction management's challenges in 2023 are significant, but technology is solving many of these challenges. From cloud-based construction accounting to automation of claim preparation, the construction industry is being transformed by technology. By adopting these technologies, construction management can improve project efficiency, reduce costs, and stay ahead of the curve in a constantly evolving industry.
Construction for NetSuite is a powerful solution for construction management looking to overcome the challenges they face in 2023. By providing a comprehensive set of tools for managing construction projects, Construction for NetSuite can help construction management to improve project efficiency, reduce costs, and stay ahead of the curve in a rapidly evolving industry.