Awake at night worrying about overspend on your construction project? AN ENGAGE REPORT POINTS OF DISCUSSION 1. Introduction 2. Match skill sets to project 3. Automate your Onboarding 4. Use online timesheets 5. Reduce the cost of processing invoices 6. Budget reporting / KPI reporting Introduction According to a McKinsey report, productivity across the construction industry has fallen since the 1990s. Budget overspend and missed project deadlines are the bane of construction managers. However, this fact seems less surprising when you consider, that the construction industry spends on average less than 1% of their revenue on digital innovation. According to the same Mckinsey report, any other industry spends significantly more on optimising their business processes with the help of technology. It has never been a better time to digitalise your processes and save time and admin costs. Here we will explore how solutions like ENGAGE can reduce costs across your workforce management processes and make your contractor costs visible and transparent. Matching skill sets to project pt 1. According to the theory the “8 wastes of lean construction” construction workers need to have the relevant skills to ensure the correct execution of their jobs. This sounds like a no brainer but often construction projects are complex with various project developments stages, that keep moving. Add numerous tiers of subcontractors and we are looking at a black box with no transparency on contractors and their skill sets. However, with software that maps your requirements for each site, project and group, you can match each labourers’ skill sets with relevant jobs across all projects. When creating a vacancy, you can specify the required skills whether it be drylining, roofing or supervising. The system also ensures that you apply the correct job rate and projected duration of the job. Matching skill sets to project pt.2 With ENGAGE software the Hiring Manager will approve vacancies based on the requirements of the relevant sites and projects. Throughout your construction project, requirements can easily be reviewed on a regular basis to avoid unnecessary cost and waste. Open placements as well as filled placements with associated cost and location can be viewed with a mouse click. This overview enables Hiring Managers to stay on top of labour demand and supply chain and cost management. Automate your Once you have determined the skill sets required on site, Onboarding you can start picking the right candidates to fill open positions. As we all know, when you employ people on a construction site there are numerous rules and regulations to follow. Not complying with these laws leads to hefty fines which will reduce your profit margins. It also causes reputational damage which might limit future business opportunities especially when tendering for public sector projects. Even when the intention is to comply with these rules and regulations, collecting the correct documentation can create time consuming admin work if done manually. Boxes like, do your candidates have the right to work or do they need a CSCS card or NVQ to work on a specific site, need to be ticked. Automate your During the onboarding process the system will get workers Onboarding pt.2 to complete some onboarding tasks designed to safeguard compliance with industry regulations and government laws. Throughout the onboarding process, workers will be asked to submit all required documents through the software. Once all documents have been provided the record is ready to be submitted to the Hiring Manager for approval. Use Online Timesheets Paper time sheets and manual data entry produce mistakes like missing information, incorrect hours, and wrong incorrect calculations. Manual data entry also lowers productivity and increases costs. With a workforce management solution, there is no need for paper time sheets and manual data entry. Pre-populated fields and drop downs avoid manual entry and repetition. For example, workers can copy hours from previous weeks. Timesheets can be set to be approved automatically if there is no need for management approval. You can manipulate the settings in a way that time sheets are entered on a weekly, fortnightly, 4 weekly or monthly basis. Online timesheets can be accessed from anywhere at any time. In a time where contactless has become integral, online timesheets can be processed without any human interaction. Reduce the cost of invoices According to research and analysis group, Gartner, the cost of processing an invoice in the UK typically ranges from £4 to £ 25, and in some cases is as high as £ 50, per individual invoice. Around one third of companies can not determine the amount of their invoice processing cost, according to a 2015 survey. However ENGAGE found that the average cost of an invoice is close to £ 15- £ 20. When companies amend their invoices manually the cost per invoice tripled according to ENGAGE’s data. Automated invoicing reduces the cost of invoicing by at least 20 times. According to a McKinsey study, 55% of admin staff would like to see data collection automated to recover lost hours. With ENGAGE the creation of invoices has never been so easy and cost-effective. Once the timesheet has been submitted and approved the status moves to OK TO PAY and Accounts can start processing a particular invoice and move it to the paid stage. Budget reporting / KPI reporting With lots of simultaneous projects ongoing, starting and finishing; different trades people and wage rates; subcontractors and agency staff, it can be a difficult job to track and manage hours worked to ensure accurate pay. More importantly it is necessary to keep on top of wage costs across projects and sites. Although your Excel and word processing systems may be familiar, they are not a profitable method for project management. Reporting tools ensures early identification of risks, management of cost and increased visibility and control. Project managers need to have access to data, that visualises results to benchmark them against KPIs and objectives. With ENGAGE, the cost management is available in real time. This provides an early warning system and flags issues such as cost overruns and future snagging issues caused by labour shortage. Budget reporting / KPI reporting pt.2 ENGAGE offers you a wide range of reports which provide information on wage costs, allocation of costs, changes in cost and margin. These reports make your projects transparent and make all the costs visible. By allocating your resources to the right location at the right time, you will be able to avoid overspend and overrunning your project timeline. In Summary With ENGAGE you can... 1. 2. 3. Whether you are a 1st tier Save hours of time and Use online timesheets which contractor, a subcontractor or an cost by automating your can be accessed from anywhere agency make sure that you onboarding processes. and approved instantly without understand the skills required and manual touchpoints. hire accordingly. 4. 5. 6. Reduce the cost of invoice Get visibility and transparency on Use a cloud-based solution processing by creating automated all your labour cost by using with no need for IT involvement and invoice from timesheet submissions. ENGAGE’s granular reporting tool. no implementation costs. And never spend another night worrying about overspend again.