Systems Evaluation
It’s never a bad time to evaluate IT (information technology) systems. Yet current market conditions, including decreased housing demand, increased competition, and costly materials, may present an ideal opportunity for builders and contractors to take time out to evaluate their current technology situation.
This topic was addressed in the June Takeoffs section of Constructech Residential. With housing demand clearly slowing across various markets, margins are tightening and builders are looking for an edge against the competition.
More builders and contractors are finding value in addressing process efficiency actions as of late. Many of these companies have focused on reducing paper-based processes within their respective organizations.
The multifamily development unit of The Weitz Co., www.weitz.com, Des Moines, Iowa, recently deployed an application that streamlines the closeout process for its $55 million senior living residential community project in St. Simons Island, Ga. Comprised of 110 residential units across three buildings, alongside multiple common areas, cottages, and recreational facilities, the volume of construction documentation was enormous.
The electronic tracking capabilities of the solution, from Data Builder Inc., www.databuilderinc.com, Des Moines, Iowa, turned the process of tracking and distributing documents into an automated procedure for the project team. The system allows for anyone with the proper access and a Web browser to retrieve information relevant to their task no matter where they are located.
One of the most appealing attributes of the solution for Scott King, project manager, is its robust search engine. Says King, “I remember a past project where I was searching for a particular letter for about six months. Something like that would not happen with this type of solution because it centralizes all information and allows you access it from anywhere in the world.”
Homebuilders tell Constructech that offering automated home technology in their developments helps them provide a competitive advantage. This not only impact builders, but also electrical contractor that wish to get involved.
“We see many customers getting into the low voltage lately and truthfully they are making more money there than with traditional electrical work,” says Todd McCormick, president, McCormick Systems, www.mccormicksys.com, Chandler, Ariz. “The market is huge for low voltage right now with margins still way up; many of our customers are doing electrical to get in the door but banking on low voltage.”
McCormick says electrical contractors that wish to get more involved with low voltage work need to address how this will impact their estimates and other operational systems in place.
“Larger customers are looking at just flat time savings from the time they get an estimate in, to getting the material delivered to job in the correct format, cutting down the paperwork,” adds McCormick. “Some have eight hours of paperwork on a house, so even if they can cut that down by a half hour where they are passing the information onto the accounting systems, the savings there are big. (Figure in that amount of savings) over 1,200 homes a year and that becomes huge.”
Overall, builders and contractors across all segments of construction are investing in new technology applications. These firms are finding that investing in such applications as project management, CRM (customer-relationship management), estimating, not only provide a competitive advantage now, but also helps position them for future growth as well.