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Rarely does an organization know so much about any
business initiative that it proceeds with 100% certainty. Yet, every
time an organization begins a capital project, it faces risks unparalleled
by any other industry:
- 50% of all construction projects finish over budget*
- 54% of all construction projects finish behind schedule*
- 24% of all construction projects are completed unsatisfactorily,
48% of those having a significant negative impact on business operations*
- Construction / Capital projects face the highest litigation
rate of any industry in North America**
Project risks can never be completely eliminated, but
they can be controlled. Using technology to apply sound principles and
lessons learned, even the most unfamiliar or unpredictable situations
can be managed. We can help.
* DTI - Construction Industry, KPI's Industry Progress
Report, 2002.
**Thomas, J.; Delisle, C. and Jugden, K., "Working Paper #2001044",
Center for Innovative Management, October, 2001
Construction management departments are being asked
by management to execute more projects and manage more capital facilities
dollars with fewer internal resources. More construction projects with
fewer people to manage them.
Typically there is a lot of information available on a
project, but it is all over the place. What is missing is a tool to
share and consolidate information for better decision-making. You need
to share information with my team and selected information with my vendor
partners. You need to extract the usable project knowledge to make informed
decisions.
Poor communication between companies is the root cause
of most problems encountered in the design and construction process.
Project Management and Control Systems solve this problem with proven
web-based solutions that centralizes communication, documentation and
accountability between all parties on a program or project team. The
result is significantly improved control over cost, schedule, scope,
and quality.
One of the most important factors underlying the shift
in ownership of Project Management tools is the growing belief by owners
that they can no longer rely on their Contractor or Construction Manager's
information systems for project tracking and control.
Historically owners had little choice but to rely
on the control systems of their program manager, construction project
manager or other outside consultant. Alternative technology was not
available. However, current economic and business imperatives make the
case for increased owner use of Project Management and Control systems
even more compelling. These issues include:
- Increased project scrutiny by lenders and bonding companies
- An overall heightened sensitivity to risk management
- Increased sensitivity to cost and schedule issues.
- Tighter budgets and over-taxed resources
- Increased scrutiny by the media and the public to cost
overruns
- The importance of adequate project controls in response
to Sarbanes Oxley
Complexity
The project team includes an owner, architect, multiple
engineers, a construction manager, two contractors and several subcontractors
- all working from
separate offices. Regardless of your role or the type of project each
has the same challenges when it comes to project management and collaboration.
Accessibility
to RFIs, change orders, submittals, daily reports, job costing and other
key documents are essential to any project's success. A cost effective
project management and collaboration tool set will streamline communications
and improve accountability, bid solicitation, document tracking and
reporting,
The National Institute of Standards and Technology
(NIST) recently reported that the inefficiency and absence of collaboration
and interoperability in the capital facilities industry cost the commercial,
institutional and industrial building sectors $15.8 billion in 2003
in lost efficiency. And of these costs, two-thirds are borne by owners.
To point out the complexity of the processes, the same survey indicated
that the following metrics apply for the average $10mm project
- Number of participants (individuals): 850
- Number of different types of documents generated:
50
- Number of pages of documents: 56,000
- Number of 4 drawers filing cabinets: 6
- Significant cost avoidance from construction project
overruns
- Reduced costs through improved construction project
bidding processes
- Improved Risk management for your construction projects
- Revenue increases and interest savings from early occupancy
- Improved Change Order Management
- Reduction in administrative, travel and overnight delivery
charges
- Litigation and discovery expense savings
Internet-based Architecture
- Improves project collaboration
- Ensures team members access both
internally and externally to current project documentation
- Facilitates 24/7 access to projects
- Creates, tracks, stores and retrieves
contact information and project documents electronically
Centralized Data
- Stores all project and contact information
- Eliminates multiple project logins
- Information in one database mitigates
misplaced project information
- Electronic tracking of file activity
- Easily track/upload reference files
- Reduces legal discovery
- Creates easy cross-project reporting
of administrative costs
- Time and Date Stamping Increases
project accountability by tracking
- Easily view outstanding items and
documents from creation to completion status through document logs
- Online document collaboration with
independent folder permissions
Project Reporting
- Review all construction projects
at the summary level,
- Manages risk exposure in job costing,
- Drill down within individual construction
projects change orders, contract histories
- Identifies missing or overdue information
using customizable queries
- Centralized data enables reporting on single
or multiple construction projects
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Construction
Project Management Software Value Proposition
Construction
Project Management Software Market and Business Drivers |
