Three Ways Project Cost Control Software Improves the Construction Industry

Construction project management companies

According to the U.S. Census Bureau, the American construction sector accounts for 7.3 million jobs. Those 7.3 million employees help their employers to generate over $1.7 trillion in combined annual revenue. Needless to say, the construction and engineering sector is crucial to the success of the American economy.

Construction management features a lot of moving parts. Employee costs, material costs, and other variables figure into a constantly fluctuating cost estimate for clients hiring out for large and mega projects meant for wildly varied industries. Construction project cost control is crucial to the success of the construction industry, its clients, and the continued well being of the American economy. Here are three ways using project cost control software can improve the industry as a whole.

  • Accurate, Real-Time Estimates
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    Project cost control software has a huge impact on construction project management and engineering procurement. When a client first approaches a construction firm, they look for an estimate. Understandably, this estimate can shift as the market does, but the client needs to be informed as this happens. Project cost control software enables detailed tracking of vendors for full project visibility over the life of the project. Month-over-month forecasted spending amounts at all levels of work allow clients to see exactly what they are paying for, ensuring no surprises spring up. This effectively equals better communication, improved customer service, and, subsequently, happier clients.

  • Improved Record Keeping
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    Over 90% of spreadsheets have errors in them. These errors, big or small, equal inaccurate cost estimates which affect construction and engineering firms in two ways. First, spreadsheet errors equal inaccurate estimates to clients. In the end, these inaccuracies will negatively affect construction companies’ reputations. Secondly, accurate record keeping keeps construction firms from having to eat any extra, unprojected costs. Project cost control software eliminates the need to keep spreadsheets for project management, increasing accuracy.

  • Industry Rating System
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    Construction project management services, such as engineering procurement software, also improve the quality of vendors dealing in the industry. Engineering project management software provides a comprehensive vendor rating system. Every time a purchase is made or a job done by a subcontractor, a rating can be provided. Over time, these ratings are aggregated to give construction providers a more informed way of awarding bids. This effectively equals higher quality and improved cost control.

As can be seen, project cost control software improves the construction industry for both clients and service providers. Real-time changes to estimates as cost forecasts shift equals happier customers and more prepared construction firms. Improved record keeping makes for better customer communication and financial protections on both sides of the project. Lastly, the built-in rating system allows cost reductions and improved quality going forward. In short, cost control software is key to success in the industry.

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