4 Ways Implementing Cost Management Keeps Companies Ahead of the Curve

24 January 2024Autodesk Construction Cloud, Build, ConstructionAutodesk Software, Collaboration, competitive advantage, construction industry, Data, data analytics, Implementation, innovation, standardization

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Construction companies have a keen interest in new cost management technology options that have been appearing of late on the market. From enterprise resource planning (ERP) system integration to managing budgets, this tech promises to revolutionize construction management.

On the whole, technology implementations tend to take place in relation to emotional states. One involves having a vision for improvements the implementation will create. Another emotional state is panic. Undergoing an implementation without proper planning can induce confusion within a company, jeopardizing successful tech adoption. To avoid this, construction companies need to approach technology adoption with a strategic mindset and an adequate amount of advance planning, which can lead to a comfort zone, positioning them ahead of the curve.

handshake over construction documents, interoperability, cost management

The planning phase should include thorough assessments of existing processes, identification of pain points and a clear roadmap for the integration of any technology. A tech implementation has the potential to fundamentally change the way a company operates, so it should be managed just as a project would be managed.

Collaboration and documentation of processes are keys to the success of an implementation. Stakeholders should be involved in identifying the problem(s) to be solved by the technology. The individuals who will be working with the technology are the most invested in addressing root-level problems. Their insights and collaboration ensure that the chosen technology aligns with the specific needs and challenges they face, giving the company an edge over competitors.


Learn about Autodesk Build and Cost Management in the free eBook: The Importance of a Common Data Environment.


Standard operating procedures (SOPs) serve as a common language, providing guidelines and procedures that everyone in the company can follow. In the context of technology adoption, SOPs act as a reference point, ensuring that the implementation aligns with established standards. However, it’s also important to design SOPs that are flexible and adaptable to change as the company and its projects evolve.

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In a 2024 Bridging the Gap podcast episode, Brad Buckles, VP of Technology and Innovation at Charles Perry Partners, explained that Autodesk Build Cost Management enables companies to stay ahead of the curve. The values his company has found with this software tool include the ability to:

  1.  Touch data one time – Workers can eliminate or at least reduce duplicate work.
  2. Gain visibility – Companies can be proactive not reactive. From a financial perspective, that requires real-time, detailed information flowing from the accounting system to the project management software (Autodesk Build Cost Management).
  3. Utilize real-time analytics – Using a product such as PowerBI, companies can drive data analytics. They are able to see down the road and make pivot decisions as needed. This might occur in response to things like an increase in the number of change orders or when costs start to exceed budgeted line items.
  4. Establish key performance indicators (KPIs) – A company can monitor and be proactive on a project to ensure there are no cost overruns, which have the potential to bleed over into project management. Linking data to schedules and RFIs to cost activities is important for tracking cost events from their point of origin through to subcontractor change orders. The entire “paper trail” can be captured and be easily accessible.
person with long ash blonde hair and maroon sweater touching digital tablet, open laptop on the desk, background blurred office setting, construction data collection and analytics, cost management

Leveraging detailed information to make data-driven decisions is facilitated when stakeholders are brought into the conversation. It’s important to determine what their needs and pain points are. For instance, what data do they need to see visually? Preconfigured Power BI templates are available in Build. Addressing problems will be a recurring job until the root cause is identified. Once that is found, innovation can be used to solve those root causes.

During the podcast, Buckles stressed that, while integrating a cost management tool with the company’s ERP system is a big effort, it’s worth it. This enables personnel to touch data one time and move on, definitely putting the company ahead of the curve.


To stay competitive and thrive in this dynamic market, your company may need an innovative operating model. Contact Applied Software, Graitec Group today to learn about the Digital Innovation Framework™. Your journey to modeling the future starts here.


 

 

 

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