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By Erica Konieczny
April 1, 2016
In a world of corporate mega-mergers and billion-dollar deals, running a small to medium-sized construction company can feel like playing in the minors and looking in on the major leagues. This isn't always the case, and running a small to medium-sized enterprise has its advantages. Whether you're an executive of a struggling construction firm looking for ways to cut overhead and boost your profit margin, or you're running a firm that needs to spread its wings and soar, here are three problems that can be solved with one simple step: implementing a cloud-based construction project management solution.
Running a small to mid-sized construction company can sometimes mean working with razor-thin budgets and dealing with subcontractors who might not be reliable. As Construction Executive noted, the construction industry has a unique payment chain that can ultimately cause some problems when working with subcontractors. Since subcontractors are the ones who generally need to front the costs of materials used in the project, pay their workers' hourly wages, wait on 10 percent of their revenue that is being held back for retainage, and then wait for another monthly billing cycle to pass before being paid, the cash-strapped subcontractors experience many operational problems that sometime cause them to fold.
In a scenario like this, construction firm executives must be ready to adapt and pivot to the next person in line. A flexible and customizable construction software solution with integration capabilities, allows firms to deal with these budgetary constraints in real time and from any job site, alleviating delays and reducing budget woes.
If you want to grow your construction company, you need to run an agile and flexible company that can be quickly scaled. When a flurry of contracts come flying through the window, your company can't hesitate with having to deal with banks or investors for financing to upgrade your software systems or hire additional people to keep up with the demand. The commercial construction market doesn't wait around for companies to catch up.
You can prepare for that inevitable moment of growth by ensuring your company has a cloud-based construction software solution. With a solution like Procore, executives at small to mid-sized construction companies can make a one-time purchase for an intuitive and easy-to-use program that does not need additional licensing. This provides the company with a rapidly scalable platform that seamlessly incorporates any additional hires alongside the accounting and scheduling departments.
Small to medium-sized construction companies have limited resources. Any profit is typically reinvested in the company for additional growth and development. Unfortunately, lawsuits in the construction industry are all too frequent.
According to the Norton Rose Fulbright's 2013 Litigation Trends Survey Report, 44 percent of construction respondents reported to having a lawsuit filed against them. 5 percent of the 401 senior corporate counsel for major industries surveyed were general counsel working in the construction industry. With almost half of the respondents indicating they were pulled into the legal arena, executives at construction firms need to have all the evidence stacked in their favor.
Using a cloud-based construction software solution ensures all the files, data, and communications essential to project management are stored in one digital repository that is easily searchable. No longer must construction firms play the blame game, since this streamlined technology allows every party to view the necessary data.
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