Minimizing construction risks through cost control

by Jul 6, 2020

The continuing COVID-19 crisis has resulted in uncertain times. Unlike many countries, Australia is keeping its construction industry going, framing it as a national economic priority. Australian Prime Minister has signaled he wants construction to continue to be classified as an essential service and considers the sector vital to the economy and jobs. Right now, what the Australian construction industry needs is longer-term collaborative relationships between clients and builders. In this way, both can commit to innovation and share the benefits.

How do you manage when market conditions are so uncertain?

There are already so many uncertainties in construction that are out of your control; why risk not controlling the ones you can? Understanding the wide variety of risks in the major areas of the construction process can help explain why it’s important to closely manage it throughout the course of a project. Simple or complex, every project has a certain amount of risk in it. To manage projects successfully, you need to deal with risks efficiently.

Construction is seen as part of the solution to leveling-up

The good news is that, through a good construction CRM, home builders and project managers can actually mitigate the cycle of delay and rework and provide a higher level of project visibility to clients. The key success indicators of the construction management system(s) include completing the project with cost and time, within the planned budget and duration, safety, and environmental standards. These goals are interrelated where each of them is affecting and affected by the others.

Risk #1 Coordination hassles

Throughout any construction project, multiple parties are involved. The same is true of residential and homebuilding-related projects. Poor communication can be a major hurdle to construction risk-management, leading to wasted materials, high turnaround time, and reworks. Regular, constructive reminders help things to turn out right. Keep communication about risks simple and to the point as well, so that your message is easy to understand and remember.

Risk#2 Inconsistent Reporting

If your current manual report processes are inefficient and cause delays and error, you greatly risk your project timeline and budget. Although exceeding budget on projects has become an industry-wide norm, finance issues are primarily a result of bad planning and inefficient reporting channels.

Risk#3 Administration Errors

Even with solid designs and no changes in the project requirements, your project could still experience overruns if project administrators aren’t up to speed with your project’s progress. In construction, even small errors occur can turn out to be catastrophic.

Risk #4 Delays

It may sound impossible to accomplish, but avoiding delays can save construction companies from cost overruns by keeping the project schedule on track. There are some reasons, like weather that are beyond your control, but most construction project delays can be avoided, like missing data, approval delays, incorrect data, lack of proper communication, etc.

Risk #5 Lack of centralized control

By integrating construction software into your project at the beginning, you’re choosing not to leave the controllable to chance. Centralized companies have a greater ability to develop and maintain standards, practices, and processes.

Risk #6 No software

Taking the time to evaluate the reasons for your construction business’ cost overruns and employing the right solutions will help you execute complex projects with greater control. The right software for builders can make tasks more manageable and quicker to process. All of these advantages also help mitigate risk. As your company handles an increasing number of projects simultaneously, it may be beneficial to use a software application specifically designed to help you manage risks better.

Better business practices for better efficiency

The full impact of COVID-19 on the Australian construction sector will become more apparent over the next quarter. Meanwhile, honoring more sustainable business practices is one of the best solutions. Improving the efficiency of operations and enhancing communications between the team can offer gains as well.

The Best Homebuilder CRM in Australia

Properly managing construction risks is the key to the successful completion of projects. Through proper planning and with the assistance of InSimplify, the best CRM software for home builders, you’ll start to significantly reduce overruns in your projects and bring in more profits! We’ll show you how builders CRM like InSimplify can avoid delays and keep your construction business moving forward. With the help of technology and soundproof home builders CRM, you will positively impact the success of your project!