How All-in-One Construction Management Software Can Increase Efficiency
Constructing a building is a complex process from start to finish, including takeoffs, estimating, bidding, and contracting; managing documents, change orders, building schedules, subcontractors, materials, and crews; inspections; and back office administrative functions throughout the project, such as cost tracking, payroll, billing, invoicing, and much more. All of these tasks are time- and labor-intensive and require close communication and coordination.
For generations, these processes were done manually. With the advent of the computer, programs were developed to handle specialized tasks, such as estimating or accounting, but the information in those specialized programs are separate and not easy to integrate. Over the years, software companies began producing integrated, “all-in-one” packages that made the construction management process more efficient because the information is all connected. The interconnection allows many processes to be automated and streamlined and reduces errors caused by manually transferring information from one program to another. The automation also allows employees to dedicate more time to higher level skills, rather than tedious tasks.
AI-Powered Construction Software
Artificial intelligence, or AI, has recently been incorporated into construction software. AI has been evolving slowly in the background for decades, but it hit a turning point in November 2022 with Open AI’s launch of the ChatGPT chatbot. In just two months, ChatGPT reached 100 million monthly users. By comparison, it took Facebook more than four years to reach that number.
The advent of ChatGPT is widely considered the point at which AI reached critical mass because that’s when it became widely accessible to the general public. From that point, it has rapidly been integrated into a vast range of applications, including construction management software.
AI takes construction software to a whole new level in speed and performance, although most are currently only partially AI-powered. AI construction software blends conventional computer processing with AI’s ability to process and analyze a vast amount of data in seconds. One of AI’s other defining characteristics is that it is self-learning. It gathers feedback on its performance, evaluates it, and fine tunes it for improved function over time.
Two Types of Software Delivery
There are two main types of software delivery: “on-premise” and “cloud-based.” On-premise software is hosted on the user’s own servers, whereas cloud-based software uses a third-party provider’s infrastructure and is hosted on the Internet.
On-Premise Software
On-premise software operates from a central location, such as the construction company’s main office, where it can be managed in a physical server. In those situations, field employees can’t access the information through the Internet unless they have an additional remote desktop solution to provide a secure internet connection to the server. Without the additional remote service, employees have to return to the office to access the information. The benefit of the on-premise option, however, is that it can provide more security, control, and customization than cloud-based software.
The primary cost of on-premise software is the initial investment of the server and related equipment and the ongoing manpower cost to maintain the server system in-house.
Cloud-Based Software
With cloud-based versions, information is accessed through the Internet, allowing all stakeholders — office employees, roving project managers, work crews, subcontractors, suppliers, the client, and others — to access and communicate online in real time so everyone stays updated. Each stakeholder can be provided with access and permissions tailored to the appropriate level for their needs.
Cloud-based access greatly improves speed and accuracy of communication. When all relevant stakeholders can see the same message at the same time, that reduces the need to send a chain of emails or texts. Also, it allows digital approvals and signatures, which also speeds the management process. In addition, software updates can be done faster.
Cloud-based software operates on an ongoing subscription cost.
AI has introduced such amazing new capabilities that some people have expressed concern that it will replace their jobs. However, in the construction industry, the labor shortage is so severe, and progressively getting worse, that it’s unlikely this will happen. What AI will do is allow construction companies to do more with the workers they have, which can help them stay competitive. Jennifer Castenson, VP of Public Relations at Buildxact explained how AI actually helps free builders to do the things they would rather do. “AI is your friend. AI is positioned to do all of the tasks that you cannot do and might not like doing. AI cannot go install a new window, redo someone’s kitchen cabinetry, or build a pole barn. What it can do is create material lists, write communications, create timelines, do takeoffs, and get you out from behind the desk to start enjoying the parts of the job that bring you the most satisfaction.”
More on AI and the Labor Shortage
One of the biggest pain points in construction is the labor shortage. While this isn’t a problem software can mitigate directly, it can help address it indirectly. Increased efficiency can help companies use their limited manpower more effectively. For example, streamlining the communication between project managers and suppliers could help prevent material delays, lessening downtime for work crews. In the office, an estimator may be able to create estimates much faster, so fewer hours are needed, allowing the estimator to do more estimates. And finally, a company that manages its schedule efficiently will develop a better reputation and may attract more and better workers and retain them longer. Crews want to have a reliable work schedule and income. If one company regularly sends crews home without work because of material delays or conflicts with subcontractor scheduling, but another company doesn’t, crews will understandably want to jump ship to work for the more efficient, more reliable company.
Common All-in-One, Cloud-Based Software
Following is a list of common “all-in-one” software designed for small- to medium-sized construction companies. (Large construction companies likely have in-house IT staff to identify software solutions that meet their needs). This is not a complete, definitive list. There are other lesser-known companies, and with the speed of growth in AI software, no doubt new services will become available. This is simply a starting point for becoming familiar with software that’s on the market.
All-in-one software solutions are cloud-based by design, as that allows the functionality necessary to provide remote access for all stakeholders and for end-to-end service.
Buildxact (buildxact.com/us)
Buildxact is designed for small builders and remodelers. It offers unlimited users and three payment tiers. According to the company, its main competitive advantage is in its AI-powered estimation tools:
Takeoff Assistant
Estimate Reviewer
Estimate Generator
Assembly Assistant
The Takeoff Assistant can pull in pricing data from whatever supplier catalogs the contractor chooses to use to speed up the estimation process.
The Estimate Reviewer is unique in that it compares an estimator’s project to a large database of similar projects that have previously been completed to check for missing items. This can be especially helpful when a company does a lot of “one-off” projects rather than standard projects that the estimator is familiar with.
Buildxact says that builders often pay for their subscription with their first project and double their business in a year.
Buildertrend (buildertrend.com)
Buildertrend is designed for small- to medium-sized home builders, remodelers, and specialty contractors. CoConstruct was designed for custom home builders and remodelers, especially in the luxury market but merged with Buildertrend in 2021. (CoConstruct is still mentioned online, but it now operates under the Buildertrend name.) Buildertrend offers unlimited users. Pricing is done by custom quote.
JobTread (jobtread.com)
JobTread is designed for home builders, specialty contractors, commercial contractors, remodelers, and roofers. It has no tiers of service. All subscribers have access to all features, but beyond the base subscription, each user pays a subscription fee.
Houzz Pro (houzz.com/pro)
Houzz Pro is designed for residential remodelers and designers. It offers three service tiers, 3D floor plans, and has strong marketing options, such as targeted advertising, a custom website, email marketing, and a premium business profile.
Contractor Foreman (contractorforeman.com)
Contractor Foreman is designed for residential and commercial general contractors and, according to the company, it can be used by small companies with one user to large companies with more than 300 employees. It offers five tiers of service with quarterly and annual billing options. The subscription fee is for the whole company rather than by individual subscriptions.
Features to Consider for Comparison
Each construction company’s budget and needs are different, so one size won’t fit all. Following is a list of features and options to consider. They vary from one software package to another, so they will need to be researched carefully to determine the option that is the best overall fit for a company’s business model.
• Product features
• Pricing tiers available and features included in each
• Subscription options
• Number of users per subscription
• Stakeholder access
• User friendliness
• Integration with other software (such as QuickBooks)
• Training and support
• Free demo
• Free trial period
• Money back guarantee
Conclusion
Construction management software is becoming increasingly important as the labor shortage intensifies and construction becomes more competitive. These tools, increasingly adding AI-powered features, are helping to improve efficiency and, ultimately, the bottom line. As smaller construction companies adopt these tools, those that don’t will gradually lose ground. With that in mind, it would be wise for companies to explore and consider using these digital solutions. RB
