Getting Real: Is Construction Project Management Software Really Worth It?

Is construction project management software really worth it?

It’s a good question. Maybe you’ve spent the last twenty years managing your company's logistics and have it down to a science. But maybe you’ve noticed some things are changing.

You’re not imagining it. Construction projects are getting harder to manage. 78% of engineering and construction companies believe project risks are increasing. And 37% of construction professionals say their companies missed budget and/or scheduled performance targets (by a factor of 20% or more) due to COVID-19.

Do your project managers have time to do the management part of their jobs? Unfortunately, the answer to this question is often “no.” 

What does project management look like for your company?

Construction is one of the least-digitized sectors in the world, with many companies and project managers still relying on manual, inefficient processes. Productivity changes could boost the value of the construction industry by $1.63 trillion.

Dave Anderskow, president of Palmer Consulting Group, notes in a recent Trimble webinar that companies today focus on the project life cycle—from winning the job to managing the budget and resources and closing it out effectively. But while they have big-picture goals, many are still using familiar but inefficient solutions such as spreadsheets to manage projects. 

Chris Wetmore, principal at RMS Technology Advisory Practice, agrees. “At the end of the day, it's still a very, very manual process of gathering information, and because of the lack of rules within those systems, it continues to create an inconsistent data set.” 

A lack of accurate data can lead to inefficient decision-making. That’s why an easy-to-use and easy-to-understand project management (PM) software solution can boost productivity.

However, a PM software solution yields no benefits if no one learns how to use it. Wetmore says, “I've seen organizations go out and buy the best and most expensive tool, and then nobody wants to use it because it's too feature-rich or confusing.” 

What if your current system is chaos?

Chaos breaks timelines, budgets, and projects. 

• Only 19% of organizations complete projects successfully on a regular basis.
• 30% are completing projects within set timelines.
• 36% are completing them within set budgets.

Raising these dismal success rates, Wetmore says, is “all about taking a step back and assessing the entire environment.” Anderskow suggests doing this by documenting your current processes to discover the inefficiencies and work through them. Then, imagine where you want to be in the future.

It’s also crucial to have a continuous training program so that when you talk to project engineers, project managers, and superintendents, they are all working from a well-documented playbook of established processes. When they have a clear understanding of how to handle tasks like budgeting, contracting, and project execution, it goes a long way toward minimizing chaos.

Companies often create their own (unintentionally) chaotic systems.

When Tom Brooks, director of Trimble Business Development, was hired to implement PM software for Disney, he recalls an executive telling him, “Your job is really to save us from us. Save me from me. Because we've created this ball of chaos, and you need to unknit it.” 

In other words, a good idea can help a project, but 500 good ideas all competing for time and attention can grind things to a halt. If you assess your process, make sure everyone is working from the same playbook, and prepare to let go of old ways of doing things, you are on your way to improvement.

What are the implications of doing nothing?

Be honest: What would happen if you left your current system in place? 

Are piecemeal tools like spreadsheets, post-it notes, emails, and whiteboards meeting all of your needs? 

Do you have feature-rich PM software that you’re not sure you are fully implementing? 

Are your current processes burdening your project managers?

Organizations such as Trimble, RSM, or Palmer have tools that can help you evaluate benchmarks and identify opportunities you may be missing. One is the Construction Financial Management Association’s Financial Benchmarker, which allows you to compare your organization’s financial performance against the rest of the industry. For example, if you are a fifty-million-dollar specialty electrical subcontractor in the southeast, what should your material costs be? Tools like this can help you evaluate budgets and discover opportunities you might be missing.

Your company’s goals and leadership strategies are also important factors. Most companies are interested in increasing profit and expanding their employee base. Even if a company is content with its current scope of projects, the market is always changing—and the future might hold unexpected demands.

“Doing nothing might seem safer, but actually invites more risk,” says Brooks. “If you make changes methodically and engage organizations to help you with targeted advice, you can get to your objectives.”

Start by evaluating your current system. If you have a PM solution, make sure you’re training your workforce to maximize the breadth of functions that bring value to you.

Industry norms are changing. Many employees entering today’s construction management workforce will expect features offered by cloud-based, mobile project management—and they already know how to use the technology. As time passes and employees retire, you’ll need to adapt to new expectations from younger workers.

For more insights, check out the full webinar.