Setbacks like supply chain disruptions and rising energy prices are putting pressure on residential construction profit margins. And for many construction companies that operated on slim profit margins before those setbacks, even the smallest cost overruns can result in loss-making projects.
Companies worldwide are investing in digital construction technology, like construction management software, to protect their profit margins.
We’ll explore three ways this technology is keeping the residential construction industry profitable.
1. Enable efficient collaboration through digital construction technology
It wasn’t too long ago that construction teams relied on email, WhatsApp, Excel, etc. to make project changes, track progress, and answer questions.
Today, with mobile apps and cloud-based software, construction professionals can collaborate and communicate much more efficiently.
One of the most significant impacts digital construction technology has on collaboration is providing the ability to collect and store data in a single source. This allows members of your team to make changes, leave comments, and respond to messages in real time.
However, this technology has an even bigger benefit: Everyone involved in the project can check how it’s progressing, allowing stakeholders to give their input on important decisions as soon as it’s needed.
With the right software, contractors, clients, project managers, and other stakeholders can easily work together to create true value and finish residential projects on time and on budget—something the industry continues to struggle with.
Streamlining your company’s processes to enable more efficient collaboration with construction technology is a fool-proof way to maintain your residential construction profit margin by reducing rework, improving build quality, and enhancing your cost control of each project.
More to read: Common challenges of residential construction projects
Projects can get off track easily because of miscommunication among stakeholders. Don’t let your profits suffer when digital construction technology can enable your team to exchange information in real time, receive automated notifications, and check in on project progress at any time.
2. Eliminate project uncertainties using building information modelling
One tiny change can affect the outcome of your residential project—you’ve likely experienced this before. But by improving your project management processes, you can fix these problems faster.
With digital construction technology, construction teams can see the impact on their profit margins in real time by making hypothetical changes and gaining insights from collected data. This allows them to make more cost-effective decisions.
It also allows stakeholders to detect potential issues before they happen, allowing them to better plan their construction activities and make adjustments before a problem occurs.
Building information modelling (BIM) software can do so much more than create 3D models—you can use it to improve your internal and external processes to reduce project uncertainties, work more efficiently, and maintain your residential construction profit margins.
BIM software acts as a single source of truth for information that’s accessible by every stakeholder for the project’s lifecycle. This information consists of everything needed to eliminate project uncertainties, including accurate models, drawings, and specifications.
One of BIM’s best use cases that’s often overlooked is clash detection: You can save money and time on your projects by catching design conflicts and building issues early, minimising their impact on the project’s plan.
With the right BIM solution, you can take control of your residential construction profit margins by improving time management, coordination, and productivity to reduce the risk of delays and errors.
3. Enhance client relationships with cloud-based applications
Every residential builder knows that their clients don’t want messages full of data they don’t care about. What they do want is access to relevant information, a real-time view of project progress, and an easy way to give their input on designs.
And with digital construction technology, capturing and sharing real-time data has never been easier, giving construction professionals a seamless way to collaborate with their clients.
You can have as many dashboards and reports showing site progress as you want, but without the right tools, they often obscure what’s really happening on site. So what do clients do? They visit the site to check out the progress and build quality. This can not only frustrate your clients, but it can slow down progress when they constantly show up unannounced.
Further reading: 5 ways to improve your construction company’s profitability
Instead, give your clients access to sketches and models through an app or online portal to speed up the approval process and keep them up to date on the most recent project progress.
So implement cloud-based digital construction technology today to keep your clients in the loop and provide them with a finished project that provides true value without frequent change orders that dig into your residential construction profit margins.
Maintain your residential construction profit margin with the right technology
Many residential builders and construction companies haven’t invested in digital construction technology—they wonder if it’s really worth the cost and worry their team won’t actually use the software.
Now that you’ve seen how cloud-based solutions can help maintain your residential construction profit margins, you might be rethinking investing in construction technology; it’s a sensible decision for many companies.
When you’re ready to get started, book your free demo of LetsBuild Coordination to gain the benefits of digital construction technology and start maintaining your profit margins at residential projects.