Financial management for general contractors is one of the biggest areas of interest in the construction industry. Construction projects tend to easily exceed the budgets or fall behind schedule, costing company's more money for labor and equipment hire.
Fortunately, technological innovation has found its way into the construction business. The advanced solution in various aspects of the business can aid better financial management for general contractors.
Introducing innovative solutions within your construction business will not only help you increase its efficiency and productivity but also reduce costs. If you are a general contractor wondering how upcoming technology can help your construction business, this post is for you.
6 Tech Innovations Aiding Financial Management for General Contractors
While there are various modern solutions available out there, the following 6 tech innovations will help your construction business ace financial management in various domains. You can implement all of the mentioned technologies or use a combination that works best for your business. So let us dive right in.
- Building Information Modeling (BIM)
Building Information modeling (BIM) is a 3D modeling tool growing in popularity within the construction industry. From planning to execution, this tool establishes a single master building design for everyone to work on.
BIM can also help your company plan maintenance needed down the road. As everyone involved in the construction project has the same view via BIM, it will eliminate confusion, mistakes, and errors. Therefore, implementing BIM can help with cost-cutting and improve financial management for general contractors.
- Inventory Management Software
Keeping track of your materials and equipment can help you efficiently maintain your inventory and prevent running over the budget. Therefore, having an intelligent inventory management system for all your equipment, raw materials, and tools sounds like a must-have solution.
You can now use smart software applications to help simplify inventory management and tracking in the construction industry. You will be able to not only track each and every item but also receive real-time updates on your inventory, fleet, and resources.
All decision-making stakeholders can now get a real-time view with accurate data and plan operations accordingly. Having a birds-eye view of all your resources and materials will help you manage each project efficiently.
Furthermore, it is a great tool for financial management for general contractors because it will prevent any equipment and material losses and save you money.
Drones are the futuristic tech innovation that prevents financial damages caused due to safety issues. An incident on a construction site is always bad news for the company as well as its employees. The accident leads to additional financial stresses on the company to pay for damages, liabilities, and any injuries caused on the job site.
However, today's technology is making it easier for general contractors to monitor site safety and prevent common injuries.
For instance, you can use drones to monitor a construction project, record a video and send it back to the management. This will reduce the waste of time and money required to arrange a physical visit. You can even save money by using drones for inspection in remote areas that are unsafe for your staff to visit.
That is not all; financial management is all about bringing in more money while increasing business efficiency. In addition to drones, you can now see bricklaying robots doing the job faster and better while freeing your staff for other tasks.
Remember, better financial management for general contractors is all about doing more work in less time. The better your efficiency, the more ROI you are going to generate.
- Improving Your Communication
Communicating via email, paper documents, and traditional phones are things of the past. While some may be comfortable using all aforementioned modes, modern times require the most efficient and instant communication methods.
Remember, the time wasted due to delays is the money your business loses. Therefore, integrating mobile technology such as software, apps, smartphones, and tablets will make it easier for your employees to access information and communicate on the go.
This efficiency and transparency of communication will get the jobs done faster and adhere to each project's timeline. Completing a project on time means timely payments without losing money due to extra labor and equipment hire costs.
- Cloud-Based Solution
Collaboration software solutions hosted in the cloud are a convenient way for general contractors to keep the project on schedule. Using a cloud-based project management solution can help your construction company keep all the information under one hood. Additionally, it will give everyone involved in the project on-the-go visibility of its lifecycle.
A cloud-based solution is a great tool for financial management for general contractors. This is because such a solution will reduce nay profit fade by staying ahead of any scope changes. If a change occurs in a project, the software will pick it and notify all relevant parties to make adjustments accordingly.
- Accounting and ERP Solutions Integration
One of the biggest technical innovations is the ability of all software solutions to integrate with each other. You can now select integrated construction software to connect your ERP as well as an accounting system in a single platform.
You can further add service management, employee management, and project management software into the mix. The smart solutions also include business reporting, intelligence, and human resource management tools.
You will be able to use software integration to get a broader picture of each project. Additionally, it will enable you to make better informed financial decisions based on the intelligent reports a fully integrated system will produce.
Let the smart software take care of managing critical aspects of your construction projects. This will not only help you save time but get better at financial management through saving money where you can.
The rate of technical innovation in the construction industry over the last few years has been impressive. While the construction businesses have been slow in adopting the tech, it can actually help with better financial management for general contractors.
No matter what size of construction firm you are, you can use a combination of any of the tech innovations mentioned in this post to your advantage.
Sign up to our newsletter