Is your construction company spending enough money on construction software and other technology? According to a recent report by Software Advice, the answer is probably no. The report shows that a majority of the construction companies surveyed, 52 percent, are still using pen and paper to handle time consuming tasks like takeoffs and estimating.
Prospective Buyers’ Current Methods
That’s the equivalent of using a hammer and nails to complete a task that a nail gun could accomplish in a fraction of the time. Not only is the pen and paper method a waste of valuable man-hours, it is also the method most prone to mistakes due to human error. This is probably why the top two reasons companies want new construction software is to improve estimating accuracy, 34 percent, and to improve the accuracy and quality of their bids, 22 percent, according to the report.
Top Reasons for Evaluating New Software
Even more alarming, according to the report, construction companies of all sizes are reluctant to allocate an adequate percentage of their budget, between 0.01 and 0.64 percent of annual revenue, towards investing in construction software. The average budget for all construction sizes is just $7,766 a year for new construction software.
There are a growing number of construction software solutions on the market that can handle virtually all aspects of managing a construction business from estimating and bidding to employee timecards and accounting to prequalifying subcontractors and completing final punch lists. Not only will these software solutions save your company valuable time, it will also help you better manage your business as a whole and allow you to grow your business.
Regardless of whether it’s resistance to change or a failure to see the long-term return on investment that dedicated construction software can provide, failing to invest in software and technology will be detrimental to the success of your construction business.
If it is technophobia rather than cost that’s holding your construction company back from investing in software and technology, your business is also on a path to failure. With the increasing use of Building Information Modeling (BIM) and collaborative construction software, the day will come when you lose out on a job because your client, whether it’s an owner or a general contractor, requests its use and you won’t have the personnel to handle their request.
Construction technology is growing and improving at an exponential rate and failing to make the financial investment now will eventually lead to failure of your construction business. The day is fast approaching when being a Luddite in the construction industry is no longer an option.
You can read the full report from Software Advice here.