When processes are not aligned at every stage of a construction project, costly delays and unnecessary expenses are inevitable – and worst-case scenario can even result in legal disputes.
Streamlined construction progress management is essential to mitigate risk and avoid these losses. However, remote jobsites, communication with stakeholders, and monitoring site progress can all pose challenges to your workflows.
The following are five costs of misaligned construction workflows and the possible solutions to ensure you avoid them.
According to an Arcadis report, the global average for construction disputes in 2021 cost US$52.6 million and lasted an average of 15.4 months.
Without a tool to track progress on-site accurately at every stage of your project, your organization leaves itself open to the risk of legal disputes which can result in millions of dollars spent on settlements and legal fees.
Misaligned expectations of construction quality and delays in delivery are just two likely causes of construction disputes. However, these risks can be easily avoided with proper documentation and record-keeping.
When it comes time for a construction project handover, what’s needed is a comprehensive progress record to mitigate any risk of legal disputes.
Lack of stakeholder trust
If construction progress is not managed, tracked and communicated efficiently, stakeholders are left in the dark about the status of their projects, which leads to doubt, confusion and a reduced likelihood of future engagements.
Without being able to visualize the site in its entirety, stakeholders are forced to make regular site visits to gain peace of mind about progress and to ensure that everything is on track. All this leads to an inconvenient experience with the need for time-consuming, costly site visits and loss of reputation with clients.
Lack of as-built record for future projects
Securing repeat jobs with stakeholders is always a positive outcome. However, with each maintenance and renovation project, as-built documentation needs to be updated. If this isn’t kept up to date, every time a new project begins, a comprehensive walk-through and additional pre-work must take place to ensure accurate as-built documentation prior to work beginning.
These walk-throughs are not only time-consuming but add to labor costs, which can easily be avoided by maintaining a reliable as-built record of the site that is updated within a shared, cloud-based platform.
Costly errors and rework
In the US, almost 50% of rework happens due to miscommunications.
A lack of a visual representation of the jobsite and communicating through e-mail threads and disparate systems can often lead to gaps in communication of what is happening on-site. Decisions are then made based on inaccurate or incomplete data.
Without a shared platform to coordinate, collaborate and execute plans, miscommunications are bound to occur leading to mistakes and unnecessary rework which can take a toll on your organization’s bottom line.
Inaccurate project cost estimation
Inaccurate cost estimation can easily lead to cost overrun. Providing bids that over- or under- estimate the costs of materials or labor associated with your project can significantly impact delivery.
Over-estimations may lead to a client choosing to not engage your firm at all, while under-estimations may mislead clients on the size of the investment, delay payment to your contractors, delay project completion, and potentially result in litigations.
Often caused by a lack of good visual data of the jobsite, inaccurate cost estimations can easily be avoided with an integrated cloud-based platform which houses 360° photo documentation within a single location to gain a clearer understanding of the jobsite.
Managing risk with 360° photo documentation
With a Construction Progress Management platform like HoloBuilder which leverages 360° reality capture technology, your team gains a streamlined process to collect, analyze, monitor, and integrate field data within a single location.
By capturing the jobsite and housing 360° photo documentation within this cloud-based single source of truth platform, your on-site and off-site teams can collaborate seamlessly while keeping stakeholders in the loop at any point of the project.
Once the project is complete, you’ll have a rock-solid progress record to eliminate doubt and the risk of disputes, improving the likelihood of repeat engagements with your client.