By implementing and monitoring performance criteria, managers of companies in the construction sector can obtain relevant information regarding the performance of activities, potential sources of process error or operational areas that require optimization.
If you spend more than you take in, then you have a problem. To create the future, you must "read" the present, and you can do this coherently, without errors, with the help of the P&L report. Find out further why an analysis of the profit and loss account can give you direction in business.
Delivering construction projects on time is one of the biggest pressures (and challenges) for builders, and the causes of delays are many, varied and difficult to predict or control. The main disruptive factors stem from supply difficulties (related to costs, raw material crunch and longer delivery times), weather factors and staff shortages
"Knowledge is power. Information is power. Keeping knowledge or information secret can be an act of tyranny disguised as humility.” - Robin Morgan
Regardless of the industry, indicators are performance measurement tools and are the only means of knowing if a process's performance is improving or degrading and if an intervention is required.
Performance indicators (KPI) are of several types: strategic indicators (market share, profit, turnover, customer satisfaction), managerial indicators (availability of resources, costs, budget), operational indicators (individual performance, process performance, products, specifications, efficiency). If not measured and treated properly, performance indicators can negatively influence the results of companies operating in the field.
In the last two years, digitization has become a topic of increasing interest even for the more conservative and change-resistant sectors, and the construction industry is under more pressure than ever to adopt new digital tools.
According to a study conducted by Deloitte, “Real Estate Confidence Survey for Central Europe”, the increase in construction costs is the biggest challenge of 2022 for 90% of real estate companies in Romania and other countries in Southeast Europe.
Study participants believe that the war in Ukraine has generated supply chain syncope, accelerating the rise in the price of both building materials and energy. This concern, together with that related to widespread inflation, the difficulty of finding land and the general uncertainty in the market, is reflected in the perception of developers about the evolution of profit margins, 90% of which expect a deterioration.
According to ZF, the percentage by which the prices of the main construction materials increased is between 15 and 100% from March 2021 to March 2022, given that in the spring of last year the same materials had already gone through several rounds of price increases. You need to maintain strict control of the materials consumed on site, and SocrateERP is the right solution. Why? We explain in more detail below.
Are you looking for an ERP solution for Construction? SocrateERP gives you access to all the features and information you need to make sure you meet your delivery deadlines, quality and budgeting to maximize customer satisfaction and profitability.
What are the must-have features that SocrateERP offers for construction?
Collaboration with subcontractors in the field of construction. SocrateERP improves project management.
By subcontracting, the construction company outsources certain types of work to other companies. Although this allows you to work on several stages of a project's development, it can get tricky when several are running at the same time. It can be difficult to keep track of your subcontractors' obligations to you. Read on to find out if a software solution for construction companies can help you reduce the pressure associated with working with subcontractors.