The Trifecta of Threats
The construction industry is facing a trifecta of economic forces in 2024, making it difficult for owners to get their projects off the ground, let alone complete them efficiently and profitably.
Soaring inflation is eroding budgets and profit margins; increased interest rates are making financing more expensive; and persistent supply-chain disruptions are causing shortages and delays in obtaining critical materials.
According to Dodge Construction Network’s latest report, many projects aren’t even getting started because of these rough economic factors. Dodge states total construction starts declined 1% in March, marking the second consecutive month of contraction driven by inflation and high interest rates.
In this challenging environment, even relatively minor delays, cost overruns, or rework issues can devastate a construction program’s viability. This heightened risk underscores the importance of meticulous preplanning and rigorous project oversight.
Turning to a Digital Solution
To navigate these challenges, owners are increasingly turning to construction program management software solutions to streamline their preplanning and design activities. These powerful digital tools enable owners to build detailed, collaborative plans for completing their projects on time and within budget.
Advanced scheduling capabilities, unavailable in legacy management methods or contractor-focused software, help identify potential conflicts or delays early on, allowing owners to proactively make necessary adjustments for their entire construction program. What-if scenario analysis provides owners insights into what needs to happen to keep a project on track when issues crop up, and cost estimations for various project phases can all be budgeted in advance to optimize resource allocation.
Another preplanning feature becoming more popular in construction program management software is the ability to interact with 3D models and 2D drawings right in the software, eliminating the need for additional programs. By examining and even virtually walking through a project’s designs in its early stages, owners can identify potential issues and develop plans to either eliminate them or work around them. Emerging trends in AI (artificial intelligence) and AR (augmented reality) are further enhancing the usefulness of these tools, increasing visibility and efficiency by eliminating the error-prone human element.
By leveraging these digital tools from the start of a project, owners can align all stakeholders around a data-driven execution plan that accounts for potential roadblocks. Once a project is underway, centralized project controls inside construction management software provide realtime visibility into schedule, cost, and resource variables. Data-driven insights from the software also allow owners to benchmark performance, identify best practices, and leverage predictive analytics to make more informed decisions for continuous improvement across their entire construction portfolio.
Steering toward Success
While economic headwinds are severely testing the industry, modern program management software is equipping owners with a powerful tool to combat missed deadlines, rework, and cost overruns. By focusing on preplanning and leveraging realtime progress tracking, owners can maintain control throughout a project’s lifecycle—from concept to turnover.
About the Author
Jake Grinnell is a copywriter and product specialist at Systemates.