It’s no secret that the construction industry has its own risks and volatility when it comes to projects.
As such, margins for construction projects must be protected to guarantee a positive return on investment. Unfortunately, being unable to find assets during projects is one of those annoying but common occurrences that can impact your bottom line.
Poor asset management can cost your team a lot more than misplaced tools, as you end up losing of time, money and effort while managing your daily operations. In addition, the risks associated with lost or misplaced plant and equipment can eventually lead to a delay in project delivery, dissatisfied clients and profit loss.
In this blog we’ll tell you how you can avoid this.
Poor asset management’s impact on your project margins
Assets such as plant, vehicles, tools and equipment are all essential requirements in completing a construction project successfully.
That’s why construction companies never underestimate the advantages of proper asset management. The right asset management solution serves a lot of purposes in addition to the usual inventory tracking of tools and equipment.
In fact, asset tracking software like EROAD Where helps you reduce operational expenses, improve project productivity and equips your team with accurate asset data for smarter decision making.
To understand just how valuable it can be for your operations, here are the negative impacts of poor asset management that can erode your project margins:
Construction projects utilise a wide range of P&E assets. With this comes a long list of tools to manage and asset data to organise.
When there is no asset management solution in place, this process requires a lot of manual process which naturally results in human error. This also takes your focus away from more valuable opportunities.
“Ghost assets” are the result of double entries and incorrect data in inventory levels. So, while you may only have one vehicle trailer on a site, your Excel sheet may suggest you have 2 or 3 units.
Poor asset management like this can mean potentially paying extra taxes and maintenance fees on these assets that no longer or don’t exist, diminishing your margins in the process.
Without an effective asset management solution in place, it can be difficult for you to track where assets are currently deployed and over what timeframes.
This makes allocating project costs and updating financial statements both challenging and inaccurate.
The right asset tracking solution informs you of the exact arrival and departure “check-in” times of construction equipment, tools and vehicles.
If you have poor asset management, it will be hard for you to present credible proof of service and this may result in charging clients less than what is required for the project.
What happens when you misplace certain construction tools or equipment? They all need to be replaced and unfortunately, you can’t bill your clients for the cost of losing the asset nor the time you wasted trying to find it.
These losses will come straight out of your margin instead – affecting the ROI of your entire project.
Why asset tracking software is the perfect solution
Asset tracking software is an advanced asset management tool that helps you locate P&E and assign them to multiple job sites efficiently.
Through its use of low energy tags and geofencing technology, you can now monitor construction tools and equipment – whenever and wherever you need to.
With asset tracking software, every asset used in your construction projects is optimised enabling you to achieve higher returns.
Want to learn more about asset tracking?
Asset tracking solutions help organisations like yours identify, assign and utilise a whole range of assets more efficiently and cost-effectively.
Through it, you can drive efficiency, achieve greater productivity and accelerate the delivery of your projects.
To assist you in optimising asset tracking, we've prepared a FREE eBook "10 tips to get the best result from an Asset Tracking Solution" on our website, which answers all your asset management questions.