Benefits of Construction Management Software

1: Enhancing Supply Chain Management

2: Streamlining Tender Creation through Automation

3: Revolutionising Tender Analysis with Automated Tools

4: ERP to Enhance Construction Efficiency

5: Leveraging Cloud-Based Solutions for Flexibility

6: Optimising Bid Management for Enhanced Project Outcomes

7: Automated Commercial Management

8: Document Management

9: Collaboration Tools

10: Reporting and Analytics

There are hundreds of thousands of construction companies in the UK, but the industry is struggling due to a skills shortage. This shortage not only hampers the growth of these companies but also escalates project costs and extends delivery timelines, making it increasingly difficult for contractors to meet their commitments. Many have had to diversify their businesses by investing in new sectors to stay viable. On the ‘Own the Build’ podcast, we recently discussed whether construction software was the long-term solution to these challenges. This blog delves into the benefits of construction management software that not only tackles these challenges but also revolutionises efficiency and cost management in the industry.

The Construction Skills Shortage

While the lack of materials is more of a temporary supply problem which I’ve talked about previously in this blog, the challenges we face with a lack of labour look to continue in the longer term.

According to data from the Office for National Statistics (ONS), there were 263,000 fewer workers employed in UK construction in the first quarter of 2022 than in the same period in 2019.

Demographic Challenges and Brexit’s Impact

Construction has a high age demography, which peaks at 50 and 65 years old, and the impact of Brexit and the pandemic’s ‘exodus’ is starting to bite, with fewer EU workers than before Brexit and the pandemic. The Construction Skills Network reported in June 2022 that over a million more construction employees might be required by 2026.

Strategies for Workforce Development

CITB CEO Tim Balcon recently said:

“Recruitment and developing a highly skilled workforce will be the construction industry’s biggest challenges over the next five years. The industry has a lot to offer and needs to use its many strengths to attract and retain top talent in a competitive recruitment landscape”.

Quantifying the White-Collar Skills Crisis

The RICS recently published its UK Construction and Infrastructure Survey for Q3, 2022 and found that critical areas of labour shortages include bricklayers and carpenters among the trades. However, I personally found it more interesting that 56% of respondents cited a lack of Quantity Surveyors (QS).

I labour this point as much of the conversation on the skills shortage seems to be attributed to blue-collar work on site when we are suffering massively with white-collar work too.

The fact 56% of companies cannot find enough Quantity Surveyors was something I found quite staggering. This alarming shortage highlights the urgent need for innovative solutions in the sector.

 

How Construction Software Can Help

Enter construction software, a key tool in combating these challenges.

Amid persistent labour shortages in the UK construction industry, utilising construction software offered a key solution for enhancing resource management and efficiency. With a marked decline in the workforce and 56% of companies struggling to find enough Quantity Surveyors, strategic adoption of such technology is crucial.

Construction software streamlines construction planning and allocation of materials and labour, transitioning from traditional, time-intensive methods to automated processes. For example, it can reduce the procurement time for a package from 40 hours to about 20 by automating tasks like data entry and tender document creation.

Construction software is vital for not only addressing labour shortages in construction teams but also for minimising material waste and unnecessary work.

So, how can we manage or mitigate this?

I believe that much of what a QS does is inefficient, and we, as an industry, can make the current crop more efficient. It isn’t sexy, but construction software can help to automate tasks and processes and is doing so to significant effect in many other sectors, so why is it still not fully impacting construction?

Construction software can help solve the skills shortage in quantity surveying in several ways. I will focus on subcontract procurement as I am passionate about it and have thoroughly studied it (and I must admit am very biased because I built construction software for it). Our research at C-Link found that it takes a Quantity Surveyor approximately 40 hours, or one week, to procure an entire package (i.e. brickwork, steelwork, etc.) from identifying contractors through the tender negotiation to contract award.

However, much of what a QS does in that 40 hours is repetitive. We refer back to old tender documents, copy and paste data in Word and Excel and generally are just inefficient. Creating automation in this process is just common sense. I remember, as a QS, there being so many cases where things just took too long, and I’m going to talk about ten areas where things could quickly be improved with construction management software.

 

1: Enhancing Supply Chain Management

The first of the benefits of construction management software is enhanced supply chain management, crucial for keeping projects on track. Almost all SME contractors have a spreadsheet of the subcontract supply chain. Without construction management software this is almost always too small, or just the data is all out of date, and therefore you struggle to find enough contractors initially, so you have to call up Google or generally search for contractors. Why does this task take so long? Could the data not be centralised and kept up to date by the supply chain? Could the market not come to you instead of you going to the market? these challenges are effectively addressed through automated and integrated supply chain modules. These systems centralize data, ensuring that it’s up-to-date and accessible. Instead of manually searching for contractors, an advanced software system can offer an integrated marketplace or network, making it easier to find available subcontractors with the right skills and certifications. This not only saves time but also enhances the accuracy of your subcontractor database, ensuring you can quickly mobilize the necessary resources.

 

2: Streamlining Tender Creation through Automation

The next of the benefits of construction management software is the Tender creation. Putting together a tender document takes time and requires skill – I believe there is a science to it personally (sadly, I’ve discussed this before). Despite this, using Word and Excel means you are copying/pasting, which takes time and is prone to human error. It would simplify the tender creation process if you had centralised scopes of work, schedules of attendance, and more which you could call up every time you create a document quickly. significantly streamlines this process through automation and template-driven functionalities. By utilizing software with centralized document templates and predefined scope of work modules, project managers can efficiently generate tender documents without the repetitive task of copying and pasting from previous files. These software tools often come equipped with features that allow for quick modifications and updates to templates based on project-specific requirements, ensuring accuracy and consistency across all documents.

 

3: Revolutionising Tender Analysis with Automated Tools

Reviewing tender returns often takes days. I’m not joking, days. Let’s say you receive four prices back on a package – the current process for tender analysis, without construction software, is to make a new excel file, line the tenders up alongside one another and compare.

After this, a QS creates a ‘tender report’, goes back to the contractors, and provides analysis. Why can that process not be automated by construction software? Imagine just being able to generate a tender analysis report to study rather than doing the data entry yourself. Another of the benefits of construction management software is automated tender analysis.

In automating the above with construction software, among other tasks in the procurement process, we estimate that the 40 hours it takes today would actually take a QS more like 20 hours.If you are saving 20 hours per package and are procuring 20 packages on a project, that is 400 hours or the equivalent of 10 working weeks on every project. If you manage two projects, it’s 800 hours and 20 weeks, almost half a working year! I know I am sounding very much like a Quantity Surveyor myself here (spoiler alert, I am one), but do you see why I think construction management software can help solve the white-collar skills crisis by automating tasks?

 

4: ERP to Enhance Construction Efficiency

Clearly, recruitment and attracting talent will play a significant role in the industry’s success over the next decade or so. Still, I would also argue that construction software can address a portion of the skills shortage in UK construction. For example, integrating Enterprise Resource Planning (ERP) systems into your construction business can take this a step further by enhancing the overall efficiency and data transparency across the organization. We all know that manually managing resources can lead to mismatches and delays, but integrating ERP systems into your software can change that. ERP software such as Oracle NetSuite, Microsoft Dynamics 365, and COINS are particularly noted for their ability to streamline operations from project management to financial oversight and supply chain management, providing real-time insights and operational control.

Modern construction management systems offer unlimited user access and enhanced collaboration tools, making them ideal for construction companies where team coordination is pivotal. Systems like Microsoft Dynamics 365 integrate seamlessly with other software, promoting a collaborative environment through real-time data access and shared workflows.

 

5: Leveraging Cloud-Based Solutions for Flexibility

We all know that these days, teams are likely to be at different sites from time to time. But this can mean they may struggle to access up-to-date project data, leading to inconsistencies and errors. Beyond that, without real-time access for everyone, collaboration can be slow and prone to miscommunication, hampering productivity. So, utilising cloud-based solutions to stay flexible is a must. This integration is particularly effective when part of a cloud-based construction ERP suite, which offers unparalleled flexibility for projects that span multiple locations. Such cloud-based solutions ensure that all team members, regardless of their physical location, have real-time access to necessary project data and documents, facilitating better communication and coordination across sites. Additionally, construction software can also help in streamlining project management tasks. Project management software, such as Procore, PlanGrid, and Autodesk BIM 360, offers features like document management, scheduling, budgeting, and real-time collaboration. These tools enable project managers to efficiently allocate resources, track project progress, and communicate with the entire team in a centralized platform. The comprehensive capabilities of a cloud-based construction ERP suite not only streamline project management but also enhance strategic decision-making across the board.

6: Optimising Bid Management for Enhanced Project Outcomes

It’s no secret that bid management is a time-consuming process, it slows down project timelines and manual entry can lead to errors affecting bid accuracy and fairness. So construction management software featuring enhanced bid management capabilities can prove invaluable is in bid management. Efficient bid management is crucial for any construction project, significantly impacting both timelines and budget. Modern construction software enhances this process by providing tools that automate bid solicitation, evaluation, and awarding. This functionality ensures that all bids are handled consistently and transparently, minimizing the administrative burden and allowing for more strategic decision-making.

 

7: Automated Commercial Management

Processing contracts can take time when done manually, it also leaves us less time to focus on more pressing tasks. One of the most convenient of the benefits of construction management software is automated commercial management. It can help to automate these various administrative tasks, such as tender and contract creation. These systems often include modules for detailed financial tracking and contract management, this can help to free up time for quantity surveyors to focus on value engineering, maintaining budgets & increasing profits by enhancing profit margins.  

 

8: Document Management

One of the most useful of the benefits of construction management software is effective document management is crucial in construction project management software. It helps stakeholders avoid access issues especially if they are off-site and it helps us avoid difficulty in version control. There’s always a concern on whether we are accessing the most recent document, especially as we don’t want to work being done based on outdated specifications. As a result, many construction software solutions have document management capabilities. This can help streamline storing and sharing important project documents, such as drawings and specifications. Features typically include version control, access logs, and integration capabilities with other platforms, ensuring that all project stakeholders have access to the latest information whenever needed, which can dramatically reduce miscommunication and project delays.

 

9: Collaboration Tools

Another one of the benefits of construction management software is the collaboration tools they offer. Communication barriers can be detrimental to many construction teams, poor communication leads to misunderstandings, increasing project risks and potential costs. This is why most construction software solutions feature collaboration tools with real-time communication capabilities, chat or video conferencing to better facilitate communication between team members. In addition to chat and video conferencing features, our software’s visual planning capabilities help team members visualize project progress and deadlines, enhancing understanding and teamwork across different locations. These tools help ensure that team members can collaborate effectively regardless of their location. This is especially beneficial for projects that involve multiple stakeholders working from different locations, improving decision-making and project outcomes

 

10: Reporting and Analytics

Decisions based on outdated or incomplete data can lead to suboptimal outcomes, it’s also harder to gain a clear understanding of project progress and financial status without real-time reporting. So to counter these issues, many construction software solutions offer a deterrent. The last of the benefits of construction management software is reporting and analytics. These additional features provide comprehensive insights into project performance, financials, and operational metrics. This can help commercial managers generate real-time reports to track project budgets, variations and changes and identify any potential issues early on & make informed decisions all from a single source of truth. Additionally, analytics can help predict project trends and outcomes, allowing for proactive management of resources and schedules.

 

Cost of Construction Software

The most critical factor in deciding whether or not construction software is worth the investment is determining if it will save you time and money in the long run. If you think construction software can help your business run more efficiently, it’s worth considering the investment.

One way of factoring construction software’s value would be considered against the alternative cost of employment.

Let’s stay focused on Quantity Surveyors. According to Indeed, in November 2022, the average salary of a QS in the UK was £46,938 per annum. This has been growing due to a lack of supply and is, therefore, likely to continue increasing.

When considering the ROI for construction software, the question is, will it stop me from needing to employ a Quantity Surveyor and will it make my current QS team more efficient?

 

What Types of Construction Software Are Available?

There are many different types of construction software available on the market today. Construction project management software helps contractors plan, track, and manage construction projects from start to finish. Other popular types of construction management software include financial management software, estimating and bidding software, scheduling and resource allocation software, document management software, and quality control and safety management software.

Construction project management software is the most popular type of construction software, as it helps contractors plan, track, and manage construction projects from start to finish. If you are suffering from a QS shortage, however, I recommend procurement and commercial management software to improve the efficiency of your current commercial team vastly.

 

My conclusion on construction software

Although the construction industry faces a skills shortage, there are ways to combat this issue. One way is using construction software, and I believe in the current quantity surveying shortage, construction software is an excellent tool for contractors to differentiate themselves from their competition.

By taking advantage of these tools, construction firms can help improve their productivity and efficiency and employ fewer staff. By automating processes like subcontractor management and tender analysis, construction software can allow workers to focus on strategic planning and enhance project outcomes by reducing errors and speeding up both the construction process and workflows conducted in the construction business. Furthermore, integrating this technology improves the industry’s appeal to potential employees, making workplaces more dynamic and technologically advanced. Efficient project management with reduced time commitments per project strengthens the industry’s position to attract and retain talent.

Amid the ongoing labour shortages within the UK construction industry, leveraging construction software offers more than just a solution for streamlining operations—it transforms the way projects are managed through real-time insights. This comprehensive visibility into every aspect of a construction project, from cost control and timeline tracking to compliance and quality assurance, is pivotal. Such technology enables managers and decision-makers to proactively anticipate issues, manage risks, and adjust project parameters effectively. Given the challenges highlighted earlier, including the significant shortage of Quantity Surveyors and the inefficiencies in traditional procurement processes, the ability of construction software to provide these insights becomes not just beneficial but essential. By facilitating a dynamic adjustment of operations and enhancing decision-making through real-time insights, construction software plays a crucial role in mitigating the impacts of the skills shortage, ensuring that projects remain on track and within budget, despite the workforce challenges.

C-Link is construction software for Quantity Surveyors and construction teams, combining all your subcontract procurement into one Web App. With C-Link, you can find subcontractors, manage your supply chain, create automated tender documents, compare prices and manage subcontractor accounts.

If you would like to learn more about our construction software solutions and how it will improve your business, watch or request a demo here.

About Paul Heming

Paul was a Quantity Surveyor who gained 10 years experience of managing £200 million worth of flagship UK projects, including 20 Fenchurch Street and Battersea Power Station. In 2015, Paul founded C-Link with the intention of sharing his expertise of managing major projects with the SME market.