When it comes to construction project management, acquiring assets is an essential part of a project lifecycle, and as such, its management is required. However, construction asset management is often disregarded or handled less seriously than it should. Most project managers focus on asset procurement, but it should not stop there. Construction asset management is essential for monitoring and maintaining vehicles, heavy equipment, tools, machinery, and infrastructure. A solid management system allows you to utilize the purchased assets efficiently, improve your project’s productivity and profitability, and boost the company’s return on investment.
Regardless of the industry, asset management is critical. Your company might lose a lot of money if you do not have a construction asset management strategy. To better comprehend construction asset management, one must first grasp the definition of an asset.
What is Construction Asset Management?
As stated earlier, construction asset management includes keeping track of equipment, trucks, computers, and facilities on a project site. Project managers must manage assets efficiently to avoid waste and ensure employees have access to the correct assets at the right time. Assets are considered the driving force behind a construction project – without them, cost hikes, building schedule delays, and low-quality performance are inevitable.
The construction industry consists of numerous moving parts, from the initial design phases until the final turnover and acceptance. Luckily, with the availability of construction technology that caters to more demanding building requirements, there is a lot of project management software that can help you fast-track your tasks for more streamlined and optimized operations.
Construction asset management can be categorized into two groups:
- Asset Procurement
- Asset Management and Monitoring
These two categories cover the whole life cycle of any asset owned by a construction company.
Why is Asset Management in Construction Important?
Construction managers need a solid asset management system because it helps them keep the company — and its employees – working at top efficiency. It can help save money and give a better customer experience in the long run, to name a few benefits.
While it may appear daunting and time-consuming, it is worth the effort. Listed below are some benefits you can realize once you focus on meticulously managing your construction assets:
- Keep track of all critical assets and keep a database of asset information
- Ensure that the data on each asset is accurate, complete, and current
- Provide accurate resource and inventory reports for each project and avoid additional audits
- Get an overview of all construction equipment and staff needed for forthcoming projects
- Know all which assets are readily available and what additional assets need to be purchased
What Are the Types of Construction Assets?
Part of a construction management plan is laying out all the resources you need to deliver the project. Your assets may come in various sizes and forms, depending on each company and each project’s needs. In this section, let’s discuss the different types of construction assets.
Construction projects require a lot of specialized equipment, depending on the work being done. Companies utilize high-dollar assets to accomplish heavy labor on a job site, from cranes, bulldozers, excavators, and backhoes to trenchers, pavers, and other specialized equipment. Construction equipment is critical to monitor because of its size, worth, and fuel use.
While mixing all wheeled assets with construction equipment is tempting, you should keep cars and trucks distinct. These are used mainly for errands or general transportation away from the project site. Like construction equipment, these vehicles should be monitored because of their size and fuel use.
Computers, Mobiles, and Tablets
Computers, which were once uncommon on construction sites, are now standard practice. Whether they are workplace computers, tablets, or even mobile phones and wearable devices, these gadgets should be properly maintained because of their worth, relevance, and cyber security issues.
Rising costs, worker shortages, and increased demand has created uncertainty for modern construction companies. Construction technologies can include worksite safety sensors, mobile applications that track equipment, or construction project management software that offers crew, inventory, and scheduling management. These technologies are designed to make a life for project managers easier essentially.
Going through every hammer, screwdriver, or nail in your toolbox sounds laborious and tedious. The smallest tool is essential if a worker needs a tool to finish a job. You can guarantee that your workers have everything they need at the right moment by keeping accurate inventory management and documenting their usage.
Trailers, portable toilets, and washing stations are available on every project site to assist workers with their tasks. As part of your asset management strategy, these assets should be tracked as they can be used in other projects.
Six Strategies for An Effective and Efficient Construction Asset Management
When asset management is done correctly, a firm should be able to use an asset effectively and efficiently to achieve its objectives and get the most value out of the assets acquired. Effective construction asset management reduces costs and risks while increasing asset delivery potential. In this section, we have listed six strategies to improve asset management efficiency:
Utilize the Predictive Maintenance Feature of Asset Management
Unexpected equipment shutdowns, project delays, cost increases, and safety hazards result from a reactive approach to asset management. These situations are often out of our hands, and thus, rushing to solve them is a headache. Predictive maintenance is the most effective long-term maintenance plan for firms with the budget to adopt.
Automate Asset Management with Construction Software
Maintenance and monitoring works that are organized manually are inefficient. Using construction asset management software is the most accessible approach to automating, tracking, and optimizing maintenance activities. It gets rid of all the possibilities of errors and inefficiencies.
Create A Comprehensive Asset List
Keeping track of all the available assets can help you stay on top of your system. From when they were acquired, why they were acquired, and whether they fulfill expectations to maintenance history, this information allows you to understand how your asset and inventory system is working and how to decide when acquiring new assets. As a result, it can efficiently assist you in improving your present maintenance procedures.
Monitor The Condition of Your Assets
At all times, every asset’s condition should be known. When the asset is projected to be withdrawn, the asset’s useful life should be established and evaluated accordingly.
Project Future Changes
This holds for risks, upcoming services, efficiency, value, growth, and loss. It is not only for the assets to foresee redundancy but also for the asset management system.
Strive For Continuous Learning and Improvement
Construction projects entail a lot of time, money, and effort. Any business that wants to stay ahead of the competition should continuously search for improved methods. This might be anything from improving asset tracking and procurement processes to modernizing outmoded workflow and safety protocols.
How Can Construction Software Help You Manage Your Assets Efficiently?
As stated earlier, a project manager’s job is not done after an asset is acquired. If assets are not carefully managed and maintained, they may fall short of the company’s goals. It is essential to determine the company’s goals as part of your investigation into finding the best software for your construction company. If you feel lost and confused, there are a lot of construction management software reviews that you can check out.
Here are some features you can look for when choosing a construction software:
Records the Assets’ Lifecycle
A sound asset management system will track and record data from the procurement of an asset to its disposal. This feature enables the stakeholders to estimate how long an asset will be functioning. On the other hand, construction businesses may begin to understand the demand for particular assets such as equipment, tools, plants, and cars by tracking equipment, tools, plants, and vehicles and preventing costly consequences such as unscheduled downtime.
Keeps Track of Assets on a Real-Time Basis
Construction asset management software should allow you to record data with just a few simple clicks, whether at the office or the site. This way, you have a clear idea of what is in your inventory, no matter the time or place. It may also be used to track the whereabouts of huge vehicles such as backhoe diggers and loaders in real-time. Knowing where assets are located may assist enhance production and minimizing task lead times in the long run.
Identifies Profitable Assets
Construction organizations may use asset management to determine which assets are operating effectively and which are not. Consider the case of a site manager who has a backhoe digger that has received considerable maintenance but isn’t working correctly. They’ll be able to see that this asset isn’t lucrative in that instance. As a result, they may decide to sell it and replace it as needed.
Reduce the Risk of Construction Site Theft
Theft is one of the gravest issues confronting the construction industry. One advantage of asset management in construction is that it helps decrease theft. Thanks to using technologies for tracking and labeling, you have a clear overview of your assets, allowing managers to keep assets safe even when left alone.
In every industry, having a sound asset management system is quite beneficial. The construction industry will help the company meet service expectations and regulatory requirements by increasing overall production output, extending the life and usage of all types of machinery and equipment, promoting system sustainability, and enabling the company to meet service expectations and regulatory requirements.