How Forecasting Should Fit Into Your Construction Management Software
Nothing helps prepare us for our everyday lives quite like a weather forecast. Failing to check the weather app on your phone can potentially result in a series of misfortunes, starting with forgetting to bring an umbrella and ending with showing up drenched to an important meeting with clients.
But forecasting goes beyond being adequately prepared for the weather. In the construction industry, forecasting has become an integral component of construction management software to help businesses stay better informed and prepared for their upcoming projects.
It can help you stay ahead of the competition by:
- Analyzing company data, performance, and cash flow
- Identifying emerging trends within the construction industry
- Properly preparing budgets and labor costs
- Executing such elements of forecasting for optimal performance
By understanding how to forecast correctly, construction managers can avoid cost overruns, schedule delays, and other potential project pitfalls. It helps companies identify risks and opportunities early on, providing more options to make informed decisions and move forward with confidence.
Keep reading to learn how construction management software can help you better analyze data and predict forthcoming trends!
Utilizing Forecasting for Better Budgeting
Optimized budgeting is perhaps the primary benefit businesses can reap from forecasting. To stay on track and budget, construction managers must clearly understand all estimated costs. This includes materials, labor, and overhead costs such as insurance and permits.
By having a clear picture of all estimated costs, construction managers can make informed decisions about where to allocate resources. With construction management software such as Sage 100 Contractor, businesses can set up a one-stop shop to oversee all facets of insightful budgeting data, such as inventory, schedules, daily field reports, etc.
Having all that knowledge at your fingertips will give you the necessary foresight to achieve desired project results and outcomes.
Assessing and Adjusting Labor Costs
Labor costs are another important factor in forecasting. To properly estimate labor costs, construction managers need to have a good understanding of the local labor market. They should know what prevailing wages are for different types of workers, as well as the going rate for overtime and other potential expenses.
By processing these factors with construction accounting software, managers can appropriately estimate how much it will cost to sufficiently staff an upcoming project.
Streamline Field and Office Teams
Perhaps the most overlooked component of how construction management software improves forecasting capabilities is streamlining communications between field and office teams. By improving communication and synergy between both departments, construction accounting teams don’t have to make guesses on budgeting fluctuations or adjustments during any project delays, especially with having direct contact to project teams located on-site.
When all your departments have access to real-time accounting and project management information, both teams are able to make more informed forecasting decisions, increasing the probability of a successful project outcome.
Accurate Construction Forecasting With Sage 100 Contractor
Having all these construction management resources at your disposal will only enhance your forecasting abilities. At Software Consultants, we help construction managers perfect their estimating and project management skills by utilizing all the helpful tools Sage 100 Contractor offers.
Curious to see how superior construction management software can improve your forecasting? Contact Software Consultants today to learn more about what Sage 100 Contractor can do for your company!