Essential Tips for Controlling Costs and Overcoming Bottlenecks in Construction Projects
Controlling costs and averting bottlenecks is fundamental in construction. As construction projects generally run on very tight margins, ballooning costs can cause serious problems – sometimes even to the point of leaving firms financially unviable – while bottlenecks can halt projects altogether.
Fortunately, effective planning and management can do much to avert these issues. Having the right planning tools to hand is crucial, too: ERP software systems, such as IFS Cloud Solutions from Muzulu, are equipped with various capabilities which can help keep your projects running smoothly and seamlessly.
Of course, each project has its own unique set of challenges and no two construction projects are exactly the same. Here are some essential general tips for keeping your costs under control, and an overview of how Muzulu’s IFS Cloud solution can help.
- Ensure estimates are accurate
- Robust risk management
- Ongoing communication is vital
- Learn from earlier projects
- Manage assets carefully
Ensure estimates are accurate
Before embarking on a new construction project, you must ensure that your estimates are all in order. Accurate estimates are vital during the planning stage; this helps to ensure that the project’s actual costs are close to the initial estimate, sparing the client any nasty shocks later on.
Using a Muzulu IFS Cloud Solution helps to cut out human error and keep initial estimates and actual costs in line with one another. IFS Cloud Solutions by Muzulu uses automated processes to produce estimates and cost reports, reducing the risk of errors which could prove costly later on.
These integrated financial tools allow managers to concentrate on other things. It also means you aren’t reliant on a tangled web of Excel spreadsheets, which can soon get confusing – particularly when team members leave – and cause problems. Learn more about these tools here.
Robust risk management
While there will be some eventualities that you can’t legislate for in advance, a thorough risk management strategy can be very valuable. This is why it’s worth mapping out possible risks so that you’re prepared for such eventualities.
Efficient risk management can reduce the risk of bottlenecks and cost overshoots through identifying potential hazards and problems. Drawing up a risk management plan around these should enable you to mitigate them more effectively.
IFS Cloud Solutions from Muzulu helps mitigate risks arising from factors including supply chain disruption and sustainability requirements through more effective planning and capacity utilisation. It simplifies operations, reduces downtime and facilitates easier regulatory compliance.
Ongoing communication is vital
Continuous communication is crucial in any construction project to ensure that everyone involved knows what’s expected of them, and the kind of resources that will be required – which is important to prevent the project from going over budget.
On-site managers should provide ongoing, real-time information about how a project is proceeding, so that you can highlight areas where costs are becoming excessive and take appropriate action.
IFS Cloud Solutions from Muzulu allows managers to obtain ongoing updates on projects without having to make continuous phone calls or on-site visits. It also enables firms to provide clients with project cost reports quicker, bringing money in sooner and making it easier for them to manage their working capital.
In addition, IFS Cloud Solutions by Muzulu makes collaboration with subcontractors easier. With Muzulu’s IFS Cloud ERP solutions, contractors can view documents and follow bid statuses as well as reporting on work progress mid-project.
Learn from earlier projects
Previous projects can offer very useful insights on where costs need to be controlled in the future. Muzulu’s approach provides our customers with finely-grained, accurate data on construction projects, including on equipment and material costs as well as staffing levels and other resources.
IFS Cloud Solutions by Muzulu allows managers to make better-informed decisions, based on concrete, real-world data. Managers can therefore review data from previously-completed construction projects and use this to find out where costs might be reduced for future projects. This provides a deeper understanding of how to manage supplies, equipment and staffing levels, allowing for potentially significant cost savings.
IFS Cloud Solutions from Muzulu makes it easier to delve into project data to uncover potential financial risks. This helps you pre-empt these risks before starting a new project, improving margins and keeping costs under control.
Manage assets carefully
Inadequate or damaged equipment can be a major cause of bottlenecks in construction projects. Vehicles, machinery and tools are all subject to strenuous use in construction and need to be carefully managed to get the most out of them.
Equipment which is simply run into the ground will need to be replaced sooner, further inflating project costs. However, IFS Cloud by Muzulu helps constructors keep track of assets and plan corrective and preventive maintenance; this optimises asset availability and boosts uptime, supporting the successful and timely completion of projects while potentially raising profit margins.
IFS Cloud’s asset management software enables construction companies to manage the full lifecycle of their assets, understanding usage and managing health and performance. This enhances overall productivity and efficiency, reduces the risk of equipment failure and unplanned downtime, and hence also prevents bottlenecks and excessive costs.
Muzulu’s unrivalled knowledge of IFS Cloud ERP allows us to support your construction business’s digital transformation, helping you to work smarter and grow with confidence.
Contact our expert team today to learn more about what we can do for you.