Constructing Success in 2024

How Automation and Cloud ERP Revolutionize Construction Management

ARTICLE
In 2024, the construction and fit-out industries find themselves at a pivotal moment, faced with the dual challenge of meeting increased demands for efficiency, sustainability, and innovation while managing the pressures of significant sector growth. The Construction Intelligence Center forecasts a growth rate of 4.2% for the industry in 2024, underscoring the urgent need for companies to keep pace with these demands and pioneer new standards of excellence in project delivery.

However, navigating these demands is increasingly complex, as highlighted by McKinsey & Company in their report, "Reinventing Construction: A Route to Higher Productivity" (2023). This comprehensive analysis reveals that a staggering 98% of construction projects incur cost overruns of more than 30% and 77% face delays of at least 40%. These challenges are compounded by the industry's anemic productivity growth, which has remained at approximately 1% per annum over the past twenty years, starkly contrasting with the global economy's growth rate of 2.8%.

The Critical Role of Automation
In the face of these daunting statistics, automation emerges as a beacon of hope. It promises to address the industry's chronic inefficiencies by streamlining operations, enhancing accuracy, and providing real-time insights. A study by the Boston Consulting Group estimated that full-scale digitalization in nonresidential construction could lead to cost reductions of up to 20% and shorten project timelines by as much as 30%.

The Risks of Technological Complacency
Ignoring the digital revolution in construction management carries significant risks. Firms that cling to outdated methods risk not only their immediate project success but also their long-term viability. Businesses adhering stubbornly to antiquated processes stand to jeopardize the success of their current projects and their enduring sustainability in the marketplace. For example, the 2023 Construction Sector Environmental Impact Assessment highlighted the consequences of not embracing eco-friendly technologies and methodologies. Firms resistant to change witnessed a notable surge in regulatory penalties by 15%, and they experienced a significant reduction in project opportunities, with a 20% dip in bid submissions. This illustrates the far-reaching effects of technological stagnation.

The Statistical Imperative for Change
Alarming statistics underscore the urgency for transformative project management tools within the construction sector. According to a comprehensive study by the Project Management Institute (PMI) in their 2023 "Pulse of the Profession" report, 75% of construction projects failed to meet their original deadlines, while 65% surpassed their initial budgets. These figures highlight the pervasive inefficiency crisis afflicting the industry, making a compelling case for adopting more dependable, automated solutions.

The challenges of tracking project progress, ensuring consistent communication among stakeholders, and accessing real-time data and insights are significant contributors to this inefficiency. The PMI's findings suggest that companies grappling with these issues stand to gain markedly from deploying an automated construction management system. This shift promises to alleviate the current operational bottlenecks and position firms to navigate the complexities of modern construction projects better, ultimately enhancing their competitiveness and profitability in a rapidly evolving market.

The Synergy of Cloud Computing and Automation
Cloud computing and modern automation tools designed for construction offer a powerful solution to the industry's woes. This combination provides a robust, scalable platform that enhances the efficacy of automated tools, facilitating seamless project management and operational visibility across the enterprise - in the office or the field - all in real-time. Their synergy optimizes current processes and sets the stage for the evolution of future innovations. Oracle NetSuite + FullClarity Construction for NetSuite is this solution.

Oracle NetSuite + FullClarity's Construction for NetSuite: The Unmatched, Future-Ready Solution
An unmatched solution has emerged by building FullClarity's construction automation—conceived from an extensive, firsthand knowledge of the construction industry's intricate operations—directly into Oracle NetSuite's world-leading ERP/Financials, CRM, and eCommerce cloud infrastructure. This strategic integration transforms Oracle NetSuite into a holistic construction management tool, harnessing its vast features to meet the nuanced requirements of the construction industry.

Andrew Coghlan, CEO of FullClarity, shares his vision: "Leveraging a lifetime in the construction sector, we've crafted Construction for NetSuite to address its unique demands. Our system stands at the confluence of tradition and innovation, ensuring that companies can navigate the complexities of modern construction with ease and efficiency today and on into the future."

This all-encompassing solution delivers unparalleled construction accounting, instantaneous visibility across the enterprise, and the capacity to manage unlimited projects and subsidiaries. It pledges to eradicate margin erosion by employing automated processes for job costing, cost estimating, and managing change orders. Additionally, it streamlines retainage and AIA billing with precision. The suite of project management tools, featuring Gantt charts and timeline reporting, offers a broad and detailed perspective on project status, guaranteeing projects are completed on time and within budget, among other benefits.

Empowering the Construction Industry for Tomorrow
Integrating automation and cloud-based systems is not merely a trend but a foundational shift in construction management. The Oracle NetSuite + FullClarity Construction for NetSuite solution offers a path to overcoming the industry's challenges and positions construction and fit-out companies for success in an increasingly competitive and complex landscape. With such technology, these construction and fit-out companies are well-equipped to construct a future of efficiency, profitability, and innovation.

If your construction company is looking for a way to administer its contracts better, FullClarity wants to speak with you. Contact us to arrange a no-obligation consultation with one of our experts.