The need to execute flawless construction projects has never been greater - but we all know what a long shot that is. The reality is every major project witnesses at least one black swan event.
With the construction industry operating on tight margins, construction business owners know they need to be vigilant against any underlying threats to their various projects. That’s because recent studies have shown that when reconsidering failed projects, 100% of the issues and failures were found to be avoidable. Despite this staggering fact, when surveyed, all parties involved said the problem came at them out of left field.
Avoiding Construction Project Failure with Asset Management Tools:
Recent studies by Frost and Sullivan, a global market research firm, show that construction asset management tools can increase productivity by 15% and asset utilization by 20%. But the real value of equipment management solutions lies in their ability to gather volumes of data from which you can draw actionable insights.
This means that firms who want to remain competitive in today’s unsteady climate will use effectively manage the data at their disposal to make sure all their projects stay on course and mitigate the risk of failure. Take a look at the top reasons why construction projects fail, and how effective a construction asset management can spot them from far away.
1. Insufficient Resources
This one is a no-brainer, but a very easy trap to fall into. With the construction sector on the rise and projects abound, it’s very easy to overbook and stretch your resources thin. With your equipment being sent to different job-sites, it can become difficult to retain information regarding the exact whereabouts of an asset and when it’s available for use.
Once you have GPS monitoring on your construction equipment, management can become so much easier. You’ll always know what’s on-site and what’s sitting in your lot, making it much easier to plan your projects.
2. Faulty Estimates of Cost and Schedule
With operating margins growing increasingly razor-thin, it’s important to stay on top of your costs and expenses with no room for error. That can be difficult with fluctuating gas prices, maintenance downtime, and idle times for each equipment – with a fleet of 100 or more, forget about pinpoint accuracy. All managers have to rely on are previous trends and hopes that the outlying factors will remain the same.
Construction asset management tools eliminate the need for guesswork. You will know exactly how many hours a machine was active, how much fuel it consumed, how much of that was reducible idle time, and whether it needs any preventative maintenance downtime. You can even optimize your worker’s schedules to prevent over-bookings, while again saving yourself 30 minutes in labor costs per worker, per day. Arming yourself with the exact costs and schedules can help you make much better project management decisions.
3. Poor Communication
No communication and miscommunication can be a huge barrier to project completion. Even if one message goes unheard or unreported, it can derail your entire timeline. But with multiple projects, each with their own timelines and requirements, it can be difficult to monitor all the noise to determine which messages require immediate actions.
The key to making sure your important messages get heard, it’s important to set alarms for when a piece of equipment is in need of repair. But in large fleets, that can easily get looked over. Construction equipment tracking allows you to keep tabs on all your items at all times.
Telematics can be a great tool in helping you get the most of this rebounding economy.