Although software can streamline construction processes and make contracting businesses more efficient, software integration within the construction industry has been slow — resulting in challenges like late invoices, poor communication and unplanned construction rework that eats into profitability and productivity.
But technology integration is a multi-pronged and large responsibility that not all contractors may be positioned to solve. Accountants, however, are well suited to assist with these strategic business decisions.
Contractors and other industry professionals are building the future, and the support of their accountants can lessen the burdens of technology integration and increase their overall business value. Innovative ways to support your clients, like the implementation of technology in the construction industry, is a topic at the AICPA® & CIMA® Construction & Real Estate Conference.
Slow tech integration and challenges
Spreadsheets, paper-based processes and whiteboards are preferred mediums for 39% of specialty contractors, instead of software equivalents, according to “Top Business Issues for Specialty Contractors” produced by Dodge Construction Network. Manual methods are still being used for business practices like labor tracking, materials management, equipment tracking, forecasting and change orders.
The lack of software adoption also contributes to payment delays among contractors. Better financial management software, additional process automation and efficient invoicing could help reduce the lag.
Many contractors state they are unable to devote time to research available software, install, train staff and ensure its continual management. As time is a finite resource, a market saturated with options makes it harder for leaders to find the right solution. If contractors do opt for a software solution, they could experience resistance from their employees — thus widening a potential skills gap of software literacy.
Unlock the benefits of software
Findings within Dodge Construction Network’s “Accelerating Digital Transformation Through BIM” provides further context at how practical software solutions can accelerate a tech boom within the construction industry and remove many current challenges.
The top three causes of rework are communication and planning related, according to Dodge Construction Network’s building information modelling (BIM) research, and a software solution could help mitigate these logistical challenges.
Embracing advanced software like BIM can accelerate digital change within the construction industry. Starting with the creation of a 3D model, BIM can help create and manage data throughout the lifestyle of a construction project.
Whether they implemented BIM for a small or large portion of their projects, contractors saw significant benefits, but contractors who used BIM for significant portions of their projects (at least 75%), saw an increase in the percentage of successful completed projects, according to Dodge’s research.
For software integration to be successful, contractors can identify their needs before researching available options, introduce a phased roll-out plan to slowly onboard employees, create means for employees to share feedback and track metrics based on their identified needs. But they may need assistance and guidance throughout this project.
Contractors build the future; so do accountants
Software is an invaluable tool that can accelerate analysis, reduce uncertainty and risks, enhance decision-making and boost productivity and collaboration because of integrated digital workflows. Accountants can be tech stewards to their construction clients and help them understand the value that BIM and other software can bring their businesses.
As your clients determine their business needs and start researching software, they can lean on your expert advice to determine the quantifiable business value of software. Before investing, clients can determine if the software is practical and applicable to their business and if it helps solve tangible and measurable problems.
Clients will need additional guidance on how to integrate software-generated data and information into other applications and BIM. Additionally, you can apply their expertise to help their clients vet vendors, understand financing options, set goals and measure their results and leverage other service providers.
The AICPA & CIMA Construction & Real Estate Conference (Dec. 4–6) connects accounting and finance professionals with industry experts, emerging trends, relevant data and the resources they need to better serve their clients. Learn more about virtual and in-person options. The three-day conference kicks off on Monday, Dec. 4 at Caesars Palace in Las Vegas.