TSG: How they gained $120K in margin with construction scheduling software
TSG: How They Gained $120K in Margin with Neo Intelligence
Industry: Steel Fixing
Published: 29 November, 2023
Explore the remarkable transformation of TSG NSW as they transitioned from manual to digital operations, harnessing the potential of Neo Intelligence.
For Spiros Mamary, Director of The Steel Fixing Group (TSG), that aha moment came when he was staring at the piece of paper he had spent hours manually tracking people and projects on. One piece of paper that every day would consume the bulk of an afternoon to compile and cross-check, and still not get the productivity and efficiency results the business and its projects needed.
There comes a moment in every subcontractor’s business life when they look at how they are doing key tasks and think, “this just isn’t working. Before Neo Intelligence, we were drowning in paperwork and inefficiency. Now, we’ve got a streamlined, digital process that everyone can easily follow.”
The Problem: Outgrowing Old Systems
It was a case of the business having well and truly outgrown its systems. Since launching 25 years ago as a subcontracting operation providing structural reinforcing services across New South Wales, the company’s reputation for technical excellence, safety, professionalism and quality project delivery has seen it grow from a team of 10 to now a team of around 80 people.
Their skills are in high demand too, across projects ranging from multi-residential developments through to major multi-million dollar commercial projects including office towers, major logistics developments, retirement living, student accommodation, retail centres and hospitality. The company’s crews comprising steel fixers, internal formworkers and concreters are in demand, and working on multiple sites across the state.
In addition to conventional steel reinforcement, TSG provides services including groundworks such as crane bases, lift pads, column pads, raft slabs and slab on ground mesh installations; vertical formwork including prefabricated reinforcement for columns and beams; post-tensioning formwork, installation of ramps and installation of capping beams.
All of these moving parts mean Spiros and the management team need to be across an intricate level of detail including each worker’s assigned tasks, hours worked on-site, stages of each job, scheduling, safety, change orders, ITPs, invoicing, payroll and responding to contingencies including client program changes, weather impacts or supply chain delays.
A notebook was the main tool used to keep all the cogs turning, and Spiros says it was proving to be both time consuming and frustrating. Notes on which workers were due to be where the next day were made in handwriting, then a paper-to-PDF converter used to turn the notes into digital records. While this might have been good enough to cover the minimum for keeping records, it did not ensure that workers would reply. There was no instant, efficient feedback loop to ensure that everyone was onboard with the planning, and also no visibility as to whether workers were on-site as required for the hours they were manually reporting on their time cards.
Carbon triplicate log books were still in play, and a paper diary for the management of the business. Not only was this becoming risky for the success and efficiency of the business, the old-school system meant that Spiros was losing hours, every day, to the management and coordination tasks.
“Every day we were experiencing frustrations with our operations,” Spiros explains. Seeing so much running around and miscommunication, we knew there had to be a better way. We knew that you can’t live like this. You can’t work like this, it’s not normal to work around on a piece of paper. We knew we wanted and needed a more solid foundation for growth and just had to find a better way.”
The Solution: Build a more solid foundation with Neo Intelligence
What TSG needed was functionality that would deliver the visibility and communications to smooth out workforce management and improve accountability while also simplifying how they ran the operations. There needed to be real-time integration with payroll and timesheets, options for digital sign-on to eliminate doubts about worker whereabouts and hours worked on site, and also functions that ensure efficient coordination of scheduling and task allocations.
He had heard about Neo Intelligence construction software from another subcontractor, and decided to look it up on LinkedIn. That proved to be a turning point, and after a discovery call with the Neo team to explore his company’s challenges and whether Neo could provide solutions, he took the plunge.
“Since then, we have never looked back. Implementing Neo Intelligence was a game-changer for us. It's like having an extra set of hands helping us manage everything from scheduling to payroll."
One of the aspects of Neo that was a major drawcard for Spiros was the reassurance that the construction software was designed specifically for the needs of a growing subcontracting business. Spiros felt reassured that Neo’s founder had experienced similar challenges, and had the right solution for overcoming them with a solid, digital construction management system.
“The fact that the founder of Neo Intelligence was an actual contractor and not some software company was what sold us. There’s a lot of construction software in the market, but it is not always built from the ground up to meet the needs of a business like ours. Neo Intelligence is tailored to solve the exact problems we face in our industry."
The Features and Impact: Streamlining Operations
Spiros singles out some features as particularly game-changing such as the ability to send bulk SMS messages and notifications to fieldworkers in the Neo fieldworker app about the next day’s schedule and receive replies straight away. “You can’t put a price on peace of mind. With Neo, I know which workers are going to be onsite and every minute is accounted for, and that’s invaluable in our line of work.”
Keeping clients happy can be a challenge. “Some builders are pedantic, they want certain things done in a very specific way. The custom form builder feature in Neo Intelligence helps us deliver for our clients as it saves time, improves compliance and reduces our risk. It’s just literally the toggle switch on or off and then type in there. It’s a lifesaver. And also you can email it straight to that builder, and download as a PDF when you need to,” says Spiros.
Extracting time sheets is another win, and Neo’s Excel button has vastly improved TSG’s payroll system.
“Using Neo saves us hours with payroll now. Payroll used to take us between a whole day to a day and a half. With Neo, we've cut that time by 30%. Now we start reporting at 9:30 am on a Monday and it's done at 1:00 pm on the same day. It's a relief knowing that our payroll process is now so much more efficient thanks to shifting to a digital, streamlined workflow.”
The Bottom Line: Neo Intelligence A Worthwhile Investment
“I’d say it’s 10 times better now that we have moved into being a digital subcontracting business with Neo Intelligence”, Spiros says. “Neo has made our lives easier, from the site manager to the office staff. I’m not stressing about allocating men for the next day, our allocation takes so much less time than before. It’s allowed us to focus on what we do best—delivering quality projects on time,” Spiros highlights.
He estimates that the value of the time saved through adopting the construction software is substantial. “The time savings we’ve achieved with Neo’s construction scheduling feature are incredible. We’re talking about a 90% time saving in resource allocation alone—that’s a savings of over $90,000 per year.”
There has been a 75% saving with receiving, collating, interpreting, and processing timesheet data for payroll – which adds up to savings of over $15,000 per year. And there has been 80% savings with invoicing variation and day labour work, managing extra work performed and progress claims, and this equates to over $16,000 per year.
Just on those three aspects the return on the initial small investment in becoming a Neo Intelligence client is obvious, as Spiros estimates the savings stack up to $121,000 per year. In this industry, where margins are extremely tight and bottom lines constantly under pressure, that represents a major benefit for the company’s bottom line.
“Making decisions and spending money can be difficult, but to build a sustainable business and stay competitive, you can’t view an investment in a digital construction operations system as a cost, it is an investment. The value outweighs the costs by a huge amount.”
“Taking a step back and looking at the big picture has helped us achieve our business goals. Implementing Neo Intelligence as our construction software system has improved our workflow and made it easier to manage more work. Without streamlined processes, managing a large workforce is impossible without spending countless hours organising and stressing out about it. The Neo Intelligence system has benefited us tremendously. If you’re still managing your construction business the old-school way, you’re leaving money on the table. Neo has been a game-changer for us, and it can be for you too.”
