Navigating construction costs can feel like venturing into an intricate maze with no clear exit in sight. With countless variables at play, it can be challenging to steer your construction budget away from a costly dead-end – after all, the complex nature of construction projects often challenges the road to cost efficiency.
In fact, according to a report by Arcadis, construction costs have risen by an average of 4.1% globally in 2022, while inflation has increased by 5.4%.1
This highlights the importance of effective construction project budget management to maintain an accurate project budget amidst fluctuating material costs and labor costs.
But there is a solution: today’s robust construction budgeting software.
This blog will explore the ways these cutting-edge tools can reshape your budgeting process to unlock potential savings to maintain an accurate project budget.
The Benefits of Construction Budgeting Software
There are several advantages of using construction budgeting software, including:
1. Real-time Monitoring of Construction Costs
With the ability to access real-time data, stakeholders can now view expenses, as they come in. For instance, if a supplier or vendor were to increase material costs unexpectedly, using real-time data would allow you to pivot swiftly, minimizing unforeseen costs.
2. Efficiency and Automation
Construction cost management software drastically reduces user errors, ensuring calculations are precise, which can help optimize both time and resources. This is crucial in avoiding cost overruns and staying within budget.
3. Intuitive Forecasting
Construction cost estimating software doesn’t just rely on present data but applies historical trends to make future cost projections. For instance, if your last three construction projects resulted in a spike in labor costs during a particular phase, you can budget proactively for the next one.
4. Resource Optimization
With construction cost tracking software, underutilized assets can be identified in a timely manner. For instance, if a crane is underused at one site but critically needed at another, real-time data can guide that effective reallocation, saving costs and time.
5. Market Trend Analysis
Fluctuations in material prices or labor rates are not a new phenomenon. However, advanced estimating software can now predict these based on extensive market trend analyses.
Key Considerations when Selecting Construction Budgeting Software
When shopping for construction budgeting software, it’s important to keep several crucial factors in mind:
Scalability: Choose software that can grow with your business needs. As your firm expands and takes on more complex construction projects, you’ll need software that can handle the increased workload and provide the necessary features and functionality.
Integration Capabilities: Ensure that the software can integrate with other tools. This will allow you to streamline your workflows and improve efficiency by sharing data and information across platforms.
User-friendliness: A tool is only as good as its usability. Opt for software with an intuitive interface that is easy to navigate and use. This will help to reduce the learning curve for your team and improve adoption rates.
Unified Project Delivery: Streamline workflows and improve communication across all phases of a project. Robust Financial Capabilities: Manage accounting, payroll, inventory, and equipment seamlessly. Enhanced Office-to-Field Collaboration: Access to real-time data ensures that all project members are on the same page.
By positioning itself as more than just a Construction Management Software, CMiC emerges as an integrated solution that construction firms can trust. Here’s how.
CMiC: A Leading Construction ERP with Robust Financial Capabilities
CMiC is the leading provider of unified, integrated, and innovative software solutions which are purpose-built for the construction industry. Their suite of solutions is designed to drive integrated project delivery, optimize workflows and heighten office-to-field communications.
CMiC’s ERP is comprised of a vast array of software applications within key product pillars: CMiC Financials and CMiC Project Management.
CMiC Financials helps construction firms manage accounting, human capital and payroll, inventory, and equipment — effortlessly. Through its cutting-edge, industry-specific functionality with proven workflows, CMiC Accounting delivers total visibility of real-time data in complex environments with shifting cost structures — equating to persistently reliable financial reports and projections, from the corporate office to field operations.
Built to manage construction projects, with “layered-in” business intelligence software to help make data-driven decisions in real-time, key applications include Accounting, Human Capital Management and Payroll, Opportunity Management & Resource Planning, as well as Equipment & Inventory Management.
CMiC’s Holistic Approach to Construction Costing
The CMiC ERP provides a unified database to ensure complete visibility of real-time data across diverse operational structures and seamlessly integrates general ledger with job costing, eliminating issues like double or manual entries in job journals. Essentially, it is a powerful Construction Cost Estimating Software that ensures projects are completed with accurate financial foresight.
CMiC also addresses challenges often faced by firms using generic accounting solutions. The adoption of CMiC’s ERP facilitates:
Efficient cost control, allowing teams to capture labor, material, and equipment costs concisely.
Enhanced financial statements and custom report generation.
Automatic capture of project-related billing and streamlined invoicing.
Visibility to Real-time Data: Access financial data across your entire operation, eliminating discrepancies and ensuring accurate reporting.
Real-world ROI: CMiC Software in Action
Of course, nothing overrides the impact of a customer success story to prove how powerful a software can be. Below are key case studies to showcase project outcomes that contractors and construction managers have delivered with CMiC.
1. Bartlett Cocke’s Transformation with CMiC
Bartlett-Cocke General Contractors, a leader in the Texas construction landscape, faced challenges with data discrepancies between their accounting and project management systems. They found themselves spending three days every month reconciling budgets. Turning to CMiC, a solution renowned for its capabilities as a construction cost management software, the firm reduced their cost analysis time by a staggering 83%. Invoice processing, once a 21-day cycle, was slashed to just 8 days. With CMiC, they experienced:
Digitalization, leading to a 62% increase in time savings in processing.
A 93% time saving in contract processing.
Enhanced revenue growth of 30% without increased staffing.
2. MARANT’s Leap in Project Execution
Ontario’s MARANT Construction faced the limitations of traditional tools like Excel and Word. With an end-goal of seamless integration between the back office and the field, they not only standardized processes but also ensured data accuracy. Their journey with CMiC led to:
Time-efficient purchase order processes.
Unified data, fostering inter-departmental collaboration.
3. Moss & Associates’ Growth Strategy
Moss & Associates’ rapid growth required a robust construction cost estimating software. CMiC’s platform was not just a solution but a growth partner. The company’s unified operations and accounting ensured that Moss could scale without compromising efficiency. Leveraging construction cost software like CMiC, Moss achieved:
Streamlined financial management.
Empowered decision-making with real-time data insights.
Schedule a free demo and discover how CMiC's budgeting software can help you achieve operational efficiency, facilitate data transparency, and drive cost savings. Deliver projects with greater accuracy and generate better outcomes.
Source:
1. 2023. Arcadis. International Construction Costs 2023
