When awarded a job, the race starts as you begin assembling and mobilizing teams for a project. Controlling project slippage helps manage expectations, which is essential to a successful partnership between a contractor and owner for future business.
What is Project Slippage?
By definition, project slippage is the difference between estimated and actual gross profit. Heavy-Civil construction projects have a high potential for cost overruns due to errors and miscommunications.
Staying on time is the biggest component of project slippage. Delays cost money and erode customer satisfaction. Controlling costs associated to project slippage is a great concern for your team, sponsor, and stakeholders.
Methods For Controlling Project Slippage
Careful planning, executing, monitoring, and controlling efforts are methods used to prevent project slippage. Having proper resources dedicated to a job is as important as using applicable tools to control slippage.
Studies by Autodesk and Dodge Analytics look at best practices for optimizing key performance indicators in construction. The study’s recommendation is to use industry-specific software as an ideal solution to impact performance and mitigate risk.
The study also shows the use of these best practices is still relatively low for most contractors. This is due primarily to inefficient processes for capturing and tracking activities, coupled with the inability to analyze the data captured.
Construction companies leveraging electronic means to capture daily activities is fast becoming an industry standard. Using electronic methods to track and report back work from the field results in reduced costs due to inefficiencies and change orders.
Controlling project slippage requires a good communication system to ensure a job is maintaining the critical path to success. Specifically, an industry-based solution focused on collecting and communicating change orders and production.
These key findings highlight how a company’s lack of a centralized electronic system for capturing daily activities precludes them from maximizing potential.
Use FieldManagement Pro to Mitigate Project Slippage
So, we know the issue keeping contractors from success is significant project slippage. Companies adopting daily electronic capturing are realizing many benefits of using real-time project data. The reported data enables teams to better understand performance, which results in an increased workflow, enhanced operations, and more profitable outcomes.
In short, implementing a field management system will help your team maximize success.
Introducing Oman Systems’ FieldManagement Pro (FMP):
FMP is a cloud-based platform that allows project team members to streamline the estimating, operations, and accounting workflow.
For over a decade, contractors have relied on FMP to better capture, manage, and measure activities on construction sites. Our clients depend on FMP’s intuitive dashboard to gain an overview of project status, overruns, and change orders to manage project slippage in real-time. They reap the benefits of powerful reporting to give better information to project managers and owners alike.
FMP helps you mitigate project slippage by delivering instant feedback on project costs and team productivity. In addition, FMP can capture robust electronic daily diaries with pictures, job site ground conditions, and delay history. All of this information is at your fingertips, plus the ability to sync employee hours with most construction-based accounting software.
Use Oman Systems’ FieldManagement Pro on your next project and help your team minimize project slippage and realize maximum potential.