ROI For Your Commercial Construction Business
A relationship worth constructing.
What's Your ROI?
Measuring the value of software technology for a construction company can be difficult as the savings are not always apparent or easy to measure. Calculating ROI from a Technology Investment comes down to two variables; what matters is figuring out their value.
Labor
A common misconception is to assume “time-saved” translates into direct savings, but the reality is quite different. In truth, you only realize direct savings from the time saved if you stop paying for that time, which can reduce your team’s size.
More commonly is the time saved used for tasks that produce a benefit for the organization. Taking on more projects or having more time to manage and document more diligently can maximize project profitability and reduce exposure to disputes.
Another benefit to time-savings can be measured by reducing stress in the work environment and overall improvements to the quality of life while on the job. Turnover costs go beyond the time spent to find, interview, hire, and train new staff. It also includes loss in relationships as well as jobsite knowledge – when you lose good people, these costs can be very high.
THE POWER OF TECHNOLOGY FOR GCs
To learn more about how you can incorporate RedTeam into your business development – project management – project financials, click here to watch and learn more about our 5 MINUTE VIDEO OVERVIEW!
"RedTeam has been an effective upgrade to our previous software systems. Processes are streamlined and employees are more productive overall. We have a great relationship with the team and feel that we are a valued client. Their market value can't be beaten."
Technology
Properly calculating the investment made in the technology platform(s) for your organization is important to get your numbers as accurate as possible. It would help if you accounted for the software itself and its implementation cost, the time invested internally to set up, and time invested in training and rolling out to your team.
It would help if you also considered possible servers, hosting costs, data plans, and equipment costs when figuring out the total investment you plan to make.
In some cases, you will get a direct benefit by replacing other platforms you have in place, reducing your need for servers, or reducing hosting and IT support needs.
"Financial forecasting and risk management are the two most important task a project manager should keep under control, Redteam does a great job offering the tools to keep track and report at all levels."
Productivity
Measuring productivity gains can be done by estimating different elements where you expect to create value for your company. Some of the more impactful elements include taking on more projects and lowering disputes and error costs.
Disputes are a major risk for construction companies, as well as, errors caused by communication breakdowns. Quantifying the value of these benefits is difficult as you effectively are trying to measure problems you don’t have anymore.
THE POWER OF TECHNOLOGY FOR GCs
To learn more about how you can incorporate RedTeam into your business development – project management – project financials, click here to watch and learn more about our 5 MINUTE VIDEO OVERVIEW!
