Asset management is an essential aspect, no matter what type of business you run. Your construction business is no different. Asset management in construction is often overlooked despite its importance in maintaining all your assets – trucks, machines, heavy equipment, building infrastructures and more. And without an asset management plan in place, your construction business may suffer devastating losses.
In this blog, we will cover asset management in construction, including the role it plays in your business, benefits, and several actionable tips to better implement it within your operations. Read more.
What is Asset Management in Construction?
Asset management in construction is the capacity to monitor and manage all of the value items to your company and for the projects. There are tons of moving parts in the construction job, from the initial blueprints of the project to the closing, handing over ownership of the projects to the company that hired your business. We hope you are aware of how technologies are changing rapidly, and stricter building reputations are being put into place. It is crucial to have the best asset management processes and guidelines.
Moreover, construction asset management allows you to organize all of your resources efficiently. From intangible assets, like small assets to time, and inventory on a construction vehicle, to some parts necessary to build your projects, asset management can help your construction company grow.
Construction asset management is critical in your business in so many ways:
- Ensure that the data on every asset is precise, complete, and up-to-date, helping you produce reports for every correct job and prevent multiple audits.
- Track critical assets and successfully maintain a database of information on your company assets that can be later on used for various jobs.
- Provide appropriate recommendations for construction personnel and equipment for upcoming jobs.
- Save money and time when bidding on jobs because you already know what assets are available and what new assets you might need to invest in.
Many Benefits of Implementing Asset Management to Your Business
So, what type of benefit does asset management provide to your construction business as a whole?
1. You get clearer insights into the life cycle and the costs of your assets
Knowing what tools you already have, their condition, and their current location is what asset management helps you in your business. When you track and monitor these items and assets, you will know how much it costs to operate, the time to replace them, and when it requires repair or routine maintenance.
Tracking the life cycle of your construction assets allow you to plan when things have to be replaced.
2. It reduces the risks of theft while at the construction site
Sad to say, but the construction sector is one of the top targets for theft. In many cases, the industry is often targeted by criminals and organized by gangs, according to a survey. You better implement security defenses and constantly track all of your assets.
By monitoring your assets, from the smallest construction tool to the most significant piece of equipment, you can continuously improve the security onsite while reducing the possibilities of theft and the hit on your operating capital.
3. You know where your construction assets are at all times
Your construction company has a lot of assets that are being transported to and from the construction site. With an asset management plan in construction, your assets and items become easier to track. And, asset management helps you eliminate ghost assets and makes you more proactive while maintaining and monitoring heavy equipment.
4. You get a manageable way to maintain and repair all your equipment
It has always been your goal to make your construction business profitable. In order to do that, you have to ensure that all of your assets are functioning at peak efficiency. Asset management helps you regularly log when repairs are being made when every piece of equipment needs to be tuned up, and whenever it needs to be replaced. The best thing now is that construction software is designed to help you with your asset management initiative.
Pro Crew Schedule, the leading software tool, can help you with your asset management efforts. It has everything you all need to manage your assets, people, project resources, etc. As of the record, it has one of the excellent construction management software reviews, proving its reliability and quality as a software tool.
Reducing the amount of unexpected downtime because of equipment failure can save you money.
5. You provide your employees with a safer working environment
By maintaining and tracking your assets, you reduce the risks of safety hazards on the construction site and possible injuries to your workers. Implementing asset management correctly allows you to meet ISO standards, referring to the importance of keeping your assets optimized. This proves that your assets meet the safety and performance requirements.
Five Asset Management Strategies for Your Business
1. Choose a winning asset management team
As a business owner, it is tough for you to monitor and manage every part of your construction business all by yourself. You need the help of a team in every department, particularly the asset management section, that require focused supervision. Therefore, you have to find reliable and professional people who are very well-informed and knowledgeable about asset management.
If your construction business is small-scale, one to three people are enough to be responsible for all your assets. If your company is large, a dedicated team should be formed to manage equipment, machines, and fleets used for many operations. Ensure that every team member is familiar with the asset management best practices you will implement and the construction project management software you will deploy in your operations.
2. Use the best Construction Asset Management Software
Almost every successful construction company has implemented software tools to manage its assets. However, you are careless and impulsive if you randomly pick an asset management tool without thoroughly analyzing your business requirements. Always be careful in your decisions and understand the top needs of your construction business and what to prioritize.
After summarizing all your business requirements, make sure that the asset management system you pick meets the unique needs of your construction business. Pro Crew Schedule is software for construction management that is designed to meet your business’s needs and the needs of your crew members. Your team members who are part of your asset management team should experience the ease of access and tracking while going over your assets. Hence, the reason why you need the best asset management tool there is!
With Pro Crew Schedule, you are hitting two birds with one stone!
3. Know the Profitability of your assets
You also have to know the profitability ratio that you gain from the usage of your assets. This helps you determine what assets generate more profits and which ones aren’t profitable enough for your business.
For instance, you have already spent huge capital and maintenance costs on a truck, but it does not work correctly. The fact if your truck doesn’t provide profitability to your business, you may want to either sell it or replace it with a new one that operates better.
Profitability can be effectively measured using construction asset management software.
4. Evaluate the condition of your assets
Ensure your asset management team thoroughly evaluates the asset conditions at least once every two or three months. This helps you and your team determine the many issues that happen to your assets much earlier and avoid damage through periodic maintenance.
With asset software, maintenance, and reparation, an inspection can be scheduled automatically, making it easier to detect any rising problems. Any damages and asset issues can be prevented earlier. This certainly helps you extend the life cycle of your assets.
5. Determine each of your asset’s lifespan
By fully understanding your assets’ lifespan, you can then estimate when you must replace your old assets with the new ones. You don’t need to wait until your equipment, fleets, or machines break because you already know how long they last.
Knowing and detailing the life cycle of your assets can also help you make purchases more wisely. For instance, when you are buying heavy equipment, you can pick one that is more durable so that it can be used much longer.
It is also crucial to calculate your asset depreciation periodically.
Modernize Your Asset Management Initiative with Pro Crew Schedule
The entire scope of construction projects makes your asset management trickier than others. So, for your business to successfully adapt, you have to leverage the latest software solutions and massive data analysis for more successful monitoring of tools, construction equipment, and your other assets.
Pro Crew Schedule is a project management software built for contractors and subs. This cloud-based platform offers to schedule and tracking features, making it easier to track all your assets anywhere and anytime. On top of that, you and your asset management team can get 360-degree visibility of your construction tools and heavy equipment transported on trucks. Expect a more improved asset tracking using this cutting-edge software.
Get a 30-day trial and start tracking your assets and personnel with greater precision!
