4B — January 31 - February 13, 2020 — Owners, Developers & Managers — M id A tlantic Real Estate Journal
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O wners , D evelopers & M anagers
Increase efficiencies and reduce waste by going digital Construction Firms: It’s Time to Move Past the “Paper Age”
T
aking the guesswork out of profitability is becoming increasing-
every work area. While strides have been made, the construc- tion industry has been one of the last to embrace the ben- efits of the electronic revolu- tion – including the shift from the “paper” world and filing cabinets filled with blueprints, invoices, change orders and every other form of business documentation. Moving from a paper to digi- tal business economy offers numerous advantages. First, let’s look at some basic costs. Construction expert Houston Neal once calculated that the construction industry prints an average of 37 million blue-
prints every year. At a price of about 50 cents for every black- and-white document printed on 20#, 18x24 paper, this translates into about $18.5 million and the death of ap- proximately 42,000 trees. How much money does your firm spend on paper every year? Further, what do you pay for toner and copying? Do you still mail invoices to clients? Now look at the broader picture. How often have proj- ects been delayed or activities stalled by the inability to review change orders, blue- prints and other relevant documents in real time? What
challenges would be solved by the immediate access to all job-related information from one electronic source by all key company personnel? What’s the value of instantly answer- ing owner/developer questions in the field? That’s the benefit of the digital age. Because today’s cloud-based ERP systems store files in one central digital location, they enable real-time document review. Solutions are available that offer user- friendly access to job informa- tion from almost any device connected to the Internet. This includes “anytime, anywhere”
visibility – as well as secure, permanent backup. With a few simple clicks, authorized per- sonnel from accounting staff to project managers and field supervisors can simply drill down from the most complex to the simplest details. Boost- ers even exist for ensuring WiFi connectivity in remote locations. Consider this as well. To- day’s contractors, builders and construction firms live in a highly litigious environment. Every error and omission, no matter big or small, can be costly. This is particularly true when design/build meth- odologies are increasingly blurring the lines between pro- fessional responsibilities, and designs are constantly revised throughout every construction phase. What better way to prepare against claims than with a detailed history of key details captured during the entire project lifecycle? One last key benefit? To- day’s best enterprise construc- tion management/accounting systems enable users to take advantage of a multi-cloud world. This means multiple business applications and services in the cloud effort- lessly interact in a way that best serves individual us- ers. Within this context, con- struction and development practitioners can adopt cloud platforms and applications that facilitate project manage- ment, property management, estimating, budgeting and valuation, AP processing, and document and approval management. So, where do you begin? The search for the right technology solution should start with the leading players. This includes firms with reputations for sup- porting the commercial real estate field for years, if not decades. Then, ask the right questions. Develop a check- list for providers that cov- ers everything from current customers, costs, reliability and security, to system func- tionality, training and ease of use. Remember that the best solutions are incorporated with partners that have a vested interest in helping your company enhance efficiencies, reduce costs, save time and increase profits. Michael Mullin is presi- dent of Integrated Busi- ness Systems (IBS) in Totowa, NJ.
ly difficult wi thin the ever-evolving construction i n d u s t r y . Th e r e a r e just too many moving parts that exist be- yond the con- trol of any one firm.
Michael Mullin
As a result, every construc- tion business owner is on the lookout for a better way. This includes best methods for enhancing efficiencies across
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