One of the most important parts of any subcontracting project is making sure the time spent on the tools is adequately reflected in the cashflow coming into the business. However, chasing those dollars can be a laborious and frustrating process, particularly with complex jobs or multi-site workflows.
A speedier way to turn time into money
One of the most important parts of any subcontracting project is making sure the time spent on the tools is adequately reflected in the cashflow coming into the business. However, chasing those dollars can be a laborious and frustrating process, particularly with complex jobs or multi-site workflows.
Invoicing is one of the tasks most project managers enjoy the least, and it can seem like time down the drain that takes away from core productive tasks including scheduling, managing staff, estimating, quality control, and site supervision. But without the invoices, no one gets paid!
Construction management software with dedicated apps can take the headache out of the paperchase, by ensuring all the relevant information is collected, coordinated, and collated effectively.
Old-school methods involving a pocket full of dockets, a clipboard of tick sheets and a handful of timecards make for a painstaking process. Furthermore, with paper records, there is always the risk of things going astray or not being reported accurately in the first instance.
Many subcontractors have been burned by this when clients who issue verbal directions later change their story and contest the invoice. Or perhaps a crucial piece of paper left in a pocket got put through a hot wash and never made it to the desk.
Keeping track without burning rubber
Another issue with manual processes is they mean supervisors and project managers need to be spending more time on the road traveling to sites. For a subcontracting business with multiple projects on the go, that can add up to a significant proportion of the work week spent behind the wheel.
That is time that could be dedicated to more productive tasks such as bidding for new jobs, estimating, training staff, improving project delivery processes, or undertaking business development activities to improve supplier networks and the business’ industry profile.
Good a construction management app can be the eyes on site that reduce the need for management to physically be there constantly. Workers and site supervisors can clock on and clock off and have their hours accurately and consistently matched to clients and projects – as well as to their pay packets. Project specifications and scheduling can be accessed easily from a smart device, and then tasks undertaken are verified in real-time.
This data flow is also immediately available back at the office, making it possible to track project costs and project financials in real time, rather than wading through piles of paper at the end of the month.
The time savings just on project manager and invoicing administration can be substantial. We have heard feedback that using construction management software with a construction management app integrated with invoicing processes can achieve a reduction in time required by as much as 80% of the time compared to manual paper-based processes.
This is because a construction management app that is part of construction software gives a project manager or administrator the ability to access all the necessary documentation including supplier dockets, timesheets, and works completed neatly compiled already in one place, then all that is needed is to do the calculations and send that data directly to the invoicing system.
Get paid what you’re worth with the help of a construction management app
Because security of payment is essential for subcontractors to ensure the business maintains good cash flow and workers and suppliers can be paid, there is a risk management benefit too.
Accurate invoicing relies on transparent and visible evidence of work completed – and your client wants to know this also before they pay up. In some situations, reporting that supports invoicing also and needs to include details of variations to timeframes or deliverables, especially when dealing with situations where claims for payment may be contested.
Effective construction management apps, such as Neo Intelligence, enable supervisors and project managers to cut to the chase, with iron-clad validation of who did what, when, where, and even why. For example, if the site conditions are poor, or other members of a construction site team have not completed enabling works, the Site Diary function can be used by either the onsite supervisor or fieldworkers to upload photographic evidence to back you up.
As one Project Manager from a subcontracting business who uses Neo Intelligence as their construction software recently commented, “Difficult clients back off fairly promptly once they are shown the evidence of a photo.”
What features should you look for?
One of the most important aspects of construction software for subcontractors is it needs to have all the features relevant to their business, without a bunch of extras and add-ons that aren’t needed.
For Australian subcontractors, functions of an effective construction management app that reflect local conditions will include the ability to manage the complexities of payroll involving multiple EBAs or internal awards, meeting the relevant conditions relating to the Security of Payment regulations such as an easy-to-use digital site diary, and a software solution that includes digital scheduling and staff management are key.
You’ll also want something that is easy for your people to onboard with, and that offers functionality relevant to different work roles including site staff, site supervisors, project managers, and the office and accounting staff. It should also ensure there’s a logic to how each function fits together to improve business processes, smooth communications and support productivity improvements. Local tech support is also key, so you have trusted advisors to help you get the best solutions for your unique business, its people, and your projects.
There’s one last question to ask yourself: what will you do with the time you save?
