There is an upsetting trend in the construction sector – many companies fail to adopt the latest construction technology mainly because they often view it as a cost, an additional expense, and not an investment. This particular mindset has increasingly affected the growth of construction tech in the industry, and many business leaders have not yet seen the fullest potential of software solutions.
In this blog post, find out why software is more of an investment than an extra cost. We will also provide stats and key benefits of implementing software in your organization.
Construction Software is a Real Investment
First, let us differentiate what cost and investment is. For sure, you have a better understanding of these two concepts, but we wanted to refresh you and provide helpful insights.
A cost is an operating expense that is difficult to tie to the revenue. Any costs preserve the status quo of the business and enable it to continue operating with the same trajectory. When you can cut costs and maintain your business operations, you or your finance team can be at ease.
On the other hand, investment is an expense you must pay upfront. If you are a true business leader in this industry, you better know firsthand the importance of investments and how they can affect your business growth. Over time, there is a greater need to invest in all types of resources – talented people, the latest tools and equipment, and so many others.
In the past, companies relied on on-site meetings and used papers, whiteboards, and fax machines to keep track of things. Now, so many construction technologies are emerging, including drones, crew-dispatching software tools, BIM, and many more.
Software Is Never a Cost – Here’s Why
To help you see the true importance of investing in new technologies to see why it was never an additional cost – take a closer look at the following stats and numbers below:
- Construction businesses are searching for particular features the most in construction management platforms: job costing (72%), project tracking (73%), project estimating (66%), improved accuracy (47%), and process automation (39%).
- 70% of contractors stated that advanced modern technologies could increase productivity.
- 52% consider the needs of a field crew a top consideration for considering and investing in technology.
- 60% of general contractors and tradesmen feel that using software to manage safety and inspections during construction is of high value. Within ten years, progressive, full-scale digitization can lead to savings between 13-21% in Design and Engineering.
- AI has the potential to significantly increase the construction sector’s profits by 71% by 2035.
- AI is predicted to reach $4.51 billion by the year 2026 in construction.
- 55% stated BIM processes minimized the time required for communication.
- 32% of contractors and owners use internally developed tools.
It does not take much, then, to fully realize that digital technologies could increase profits in construction if implemented and used correctly. And you can see why it is not only wrong but also dangerous for many business leaders to view software and its implementation as an additional expense – when in reality, it is such a huge benefit and can bring so much value to the organization.
Key Benefits of Software Implementation in Construction
In the previous section, we provide some vital stats and numbers highlighting the positive impact of software solutions in construction. Now, we will go over the real benefits of software implementation.
1. Improved Flexibility and Mobility
Construction work is subject to many unpredictable external factors. For example, the weather condition could be better, a piece of equipment breaks down somewhere, or a supplier must be on time to deliver important materials.
Reorganizing work in these situations will often take days in the old times. But with software tools, dealing with and solving any uncertainties becomes super easy. Tablets, smartphones, and other GPS-enabled assets are becoming a solid staple in construction.
2. Easy Information Access and Sharing
Gone already been the popularity of Excel spreadsheets these days. Cloud-based construction employee scheduling software is the new trend. It integrates communication and collaboration, stores contacts and files, and instantly syncs all project updates. Sharing data and viewing dashboards is made easier, and everyone will be notified of any changes.
Construction techs help maintain a unified database as the single source of truth for everyone involved – allowing everyone to prevent blind spots and inefficiencies at all levels.
3. Reductional in Operational Costs
Cloud-based tools enable you to tell where and when expenses are exceeded as well as also the reason why. Advanced tools like these offer a whole new perspective – predicting where and why you incur high costs in the future.
Predictive analytics, a feature of this software, can be used anywhere in your business – from lowering risks, predicting cash flow, and overseeing asset maintenance to effectively reducing overall operational costs.
This is strong proof that software solutions are game changers regarding costs and expenses.
4. Top-tier Data Security
To avoid data security issues, operation via the cloud is a more sensible solution. With cloud hosting, logging in to your accounts from a different device is possible, and you can just continue to work where you left off. Using the cloud can also make disaster planning and recovery much less stressful. Expect to have a slight disruption to your workflow.
A Simple Guide to Construction Software Pricing Models
Since the blog targets to explain why software solutions should not be perceived as a cost, we decided to put together a simple but in-depth guide that can help you learn different costs and compare different pricing models of one of the most popularly used software solutions in the industry today – construction scheduling software.
1. Perpetual License
It is a software pricing model that allows you to buy the software program once and use it forever. While the solution itself can be used forever, any updates, upgrades, and support may be purchased separately. Perpetual licenses are typically found in on-premise installments, where the user pays for the license to utilize the software on their local servers and desktop computers.
Before the rise of cloud-based software, this was the most commonly preferred software pricing model. Today, the perpetual license has become increasingly rare as most construction companies and firms have quickly transitioned toward subscription-based pricing.
2. Subscription License
If any software solution in the market is subscription-based, it is none other than the cloud. A cloud-based construction schedule software has become increasingly popular due to cost savings and flexibility, and many claim that it is way better than the first pricing model.
This pricing model means that you have to pay either a monthly or annual subscription fee to use the software and get immediate access to features and updates as being released. Another best thing about a subscription-based solution is that you do not need to maintain the hardware, and you can access and use the software via your web browser or mobile device.
3. Open-source software
Another pricing model is open-source software. With open-source, you can easily access free tools and programs that can all be customized according to your specific needs. On the one hand, open-source is openly free to use and distribute, which can save your construction company extra costs. In addition, this software has a transparent development process that allows any user to see the source code and see how this software works.
The downside of open-source is that it does not have a similar level of commercial support like subscription-based and propriety software, and many do not have all the capabilities and features you need.
4. Free versions
Software vendors in the construction market offer free versions of their products. If you wanted to opt for a free version, expect that they are almost and sometimes limited in two or more of the following aspects:
- Features and integrations: A free version usually offers only basic features and functionalities than paid versions.
- Access: This software may provide access but only for a limited period of time. (i.e., one-month free trial).
- Support: All free software versions do not have phone support or live chat. So, it is difficult when there are rising issues.
- The number of users: Software vendors will often give their products for free to only a limited number of users. If you want to add more people, expect to be charged for the additional seats.
If you are running a small construction business with a super tight budget, you may be able to get by using some free versions of software. However, as your business expands, it is important to be equipped with the best software tools in the market. And apart from having construction dispatching software, you may also start deploying software dedicated to your company accounts, takeoff, inventory, and estimating quality assurance.
Experience the Affordability and Convenience of Pro Crew Schedule
It is clear that software is not a short-term solution but the construction industry’s future. Digital tools are crucial in pushing the industry to a more productive and innovative direction. Now is the time to disregard your negative views about these technologies and embrace their positive impact. Invest in one!
Pro Crew Schedule is today’s leading cloud-enabled, fully-integrated construction dispatching and scheduling software. With this cloud, you can fully control small to large-scale projects and oversee every aspect of your business. Using our sophisticated software, you will also be confident in navigating the unpredictable market situation and surpassing the competition.
Now, let’s go over our pricing details. Our pricing is designed to be straightforward, transparent and cost-effective. And we promise you get exactly what you sign-up for, with no additional costs. And most importantly – No Contracts. No Obligations and you can cancel anytime.
If you have a bunch of other questions, you can get in touch with us for clearer answers.