If someone asked you how you derive value from your construction project data, your answer will likely be related to a current or future project. You might mention improvements in scheduling, or better collaboration, or a reduction in rework. But some of the most valuable project data in the hands of construction companies is the data accumulated from past projects.
In this third installment of our project data blog series, we’ll look at the business benefits of project data post-completion, and how general contractors, specialty trade contractors, and owners can all benefit from analyzing past projects.
Past project data is a catalyst for GC profitability
General contractors that have access to detailed past project plans are sitting on a treasure trove of valuable project data. This data can inform decision-making when it comes to bidding on new project, enable more precise resource planning, and greater accuracy in business forecasting.
More accurate bidding helps contractors balance the risk of underpricing and potentially losing money on a project with the risk of bidding too high and losing out on the job altogether. With access to past project data that details like how long each phase took, which trades performed reliably, and what realistic material lead times amounted to, contractors can make far better informed calculations and set themselves up for success in their bidding.
Greater accuracy in bidding also enables the company to allocate resources more efficiently, including labor, materials, and equipment. This minimizes waste and ensures that resources are available when needed, reducing downtime and project delays that eat into the bottom line.
By building a data gut-check into your bidding and resource planning processes, the precision of your business forecasting improves across the board. Field-sourced, reality-tested numbers will win out over guesstimates any day. With greater confidence in your forecasting, you’ll be empowered to make proactive decisions.
Documentation and data is a win for trade contractors
Specialty trade contractors also stand to gain from consulting past project plans and performance metrics. With a detailed record of the sources of variance across multiple projects, trade contractors can identify patterns in variance reasons and take steps to minimize them on future projects. And access to retrospective data on the impacts of these variances enables trade contractors to choose to work with general contractors that take a collaborative approach to re-planning. By forming better partnerships, trades can win repeat work from established clients, which in turn leads to more stable and predictable revenue.
Owners can bank on successful occupancy
Work on a building doesn’t stop when the site trailers leave. Owners can prepare for a predictable maintenance schedule and worry-free occupancy with a forensic record of what was installed during the build, when, and by whom. Should a problem arise, having this project data to reference can save critical time and ensure repairs, renovations, or expansions go smoothly and quickly. Accumulating data on how often repairs and renovations are needed will help with cost forecasting of long-term property management.
For owners with multiple projects, access to past project data offers insight into bid accuracy and enables realistic budgeting and scheduling. With a point of comparison, they can probe further in the tender process to make sure they are getting a solid plan from their project team.
By removing as much uncertainty as possible, owners can maximize the value of their existing investment and set themselves up for future project success.