These are the key success factors for the commercial building construction business.
Operations Visibility: Commercial building construction firms have complex organizational structures. Many times, different departments of a construction company work without much coordination. This creates management blank spots and causes ill-informed decisions.
This low visibility in the operations of a construction company also creates knowledge silos where one department does not share knowledge with other departments reducing organization efficiency, problematic collaboration, employee dissatisfaction, and decrease in turnover.
You can solve the problem of operation visibility by holding knowledge-sharing meetings and project meetings where all departments can align with the organizational goals.
Embrace Technology: Construction companies see the use of technology as an expense and not as an investment. Thus, a large number of construction firms are using spreadsheets as their most-advanced technology tool. However, a lack in the use of technology is adding to the inefficient use of time, wasted resources in record keeping, slow business processes, and more.
Currently, the construction industry is spending only 1% of its total revenue on technology. Old employees prefer the business process they are used to and they resist technology. If the adoption of technology can be made interesting and less time-consuming, coupled with relevant training for the staff, construction industry companies can adopt the technology. Technology can increase productivity, more control over projects, and save costs in the long term.
Manage Complexity: Construction projects are already complex and the modern architecture requirements have made them even more complex. Some complexity comes from subcontracts, multiple locations, inexperienced staff and contractors, and accidents.
The use of technology and better communication can remove complexity, increase productivity, and increase profitability.
Less Documentation: You need documentation for only two purposes, managing projects and resolving disputes. You can drop other documentation. It will help you save costs.
Avoid Litigation: The construction industry is prone to litigation. A whopping 71% of the large construction companies spend over 1 million per annum. Good documentation helps you win in court.
