Data reporting for construction companies isn’t just another task to add to a lengthy list of to-dos. Accurate reporting is necessary to meeting key performance indicators (KPIs), remaining organized and minimizing unnecessary expenses, and staying ahead of the competition.
Construction companies have a significant amount of data to report each day. From labor hours, material materials used, and project schedules, to equipment performance, safety incidents, and project progress, there is a ton of information to record, track, and analyze.
Despite the importance of data reporting, construction companies often lag in adoption. The Foundation of the American Subcontractors Association (FASA) reports that instead of inputting information into readily accessible software, it’s scattered across multiple sources: emails, texts, voicemails, handwritten notes, paper logs, spreadsheets, and more. In many cases, it becomes lost in the abyss, draining even more time and money.
Data reporting, when done right, can help your business. It can significantly reduce the time and communication amongst workers who are looking for information that can be found in one place, and allow them to make informed decisions for each project.
What is Data Reporting in Construction?
Every company produces data. Typically, the larger and more complex the company, the more thorough and abundant the data, and such is true for construction companies.
Construction companies have a lot of moving parts, and these parts must be strictly managed and recorded.
The of the data reported by construction companies typically falls under seven categories:
- business performance data
- equipment data
- financial data
- labor data
- materials and inventory
- safety data
- project data
There is a broad list of subitems within each category that pertain to specific components of each job. For example, the project data category include items such as:
- budget vs. actual cost
- delays and reasons for delays
- equipment use
- labor hours
- materials purchased vs. materials used
- percentage of project completed
- project schedule and completion dates
- projected profitability vs. actual profitability
Because there is such an extensive list of information that must be reported, different departments are typically responsible for certain categories.
Why is Data Reporting Important?
Without data reporting, construction companies face a high risk of being unprofitable, in poor standing reputation-wise, and vulnerable to legal disputes.
Data reporting is absolutely imperative and non-negotiable for business.
Recording data is the way construction companies remain on track, on budget, and build trust with their clients. It’s also how these companies provide proof in the face of legal issues and avoid hefty fines from the Occupational Safety and Health Administration (OSHA) and other government entities due to missing documents.
Without documents to reference, management doesn’t have ready access to data, such as material cost and delays, to help them better plan and direct their time. Essentially, leaders would blindly manage projects and employees, which is terrible for sustaining business.
Common Challenges with Data for Construction Companies
Having enough data is never a problem for construction companies. The dilemma is translating data into actionable information to help leaders make informed decisions.
Companies don’t need more paperwork, notebooks, spreadsheets, and documents. These companies need ways to analyze the data cohesively and thoroughly.
Some of the challenges faced by construction companies with data reporting include:
- conflicting information: some teams record data in different ways, i.e. inconsistent abbreviations and formatting
- data in multiple places: different departments and team members may record data differently, i.e. software programs, manual entry, etc.
- inconsistent communication between departments: when employees and/or teams don’t share data with one another or ask necessary follow-up questions, these teams may make decisions based on varying information
- outdated reports: if employees are referencing reports made available once a week or month, then decision-making is done by referencing outdated materials. Daily reports are ideal.
- vague data: assessing project profitability and comparing reports of similar projects to determine the correct amount of materials to purchase, for example, is nearly impossible when there is missing data, inaccurate data, or unclear data.
If departments don’t have an easily accessible way to assess their projects in real time, it’s near-impossible to effectively manage each job. Even if companies are meticulous about data reporting, the data can’t be applied to use without actionable steps.
How Construction Software Can Improve Data Reporting
Construction software, like Sage Estimating, Viewpoint Vista, and Procore, are designed to help companies organize data into actionable solutions. Instead of having a heap of data recorded in various locations, software programs offer a single location for recording data, and, with the click of a button, can organize data into usable reports.
Instead of sifting through papers, employees can log and reference materials conveniently in one place, via a dashboard. Software saves time by eliminating the need to search for paperwork across departments and employees.
Some of the other ways software can improve data reporting for construction company includes:
- Automates repeating reports
- Creates consistency
- Eliminates manual entry (and the associated risk of errors)
- Establishes more transparent accountability
- Improves communication amongst departments
- Makes project forecasting easier and more accurate
- Presents data in easy-to-read formats
- Provides access to real-time data
- Recognizes data trends
- Removes duplications
With data accessible via a single location, it’s easier for leaders to direct their companies with evidence-based data. Instead of trying to make educated decisions from data haphazardly or inconsistently recorded, software programs can present all data in a single location and produce to-the-minute charts for fast interpretation.
Better Decision-Making Starts with Construction Software
If your construction company isn’t using software to manage data, then it’s time to make changes. Competitors use software programs and you don’t want to lose business as a result of not adopting such programs. You don’t need to buy many software programs, but you should purchase the right ones.
Cassell Consulting provides software solutions for construction companies, and can integrate various programs to speak to each other. No more needing to switch between programs: all your data will truly remain in one place.
