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Lack of real-time insight costs contractors £250k a year

16 March 2021

A lack of real-time insight into operations could be costing construction businesses more than £250,000 a year, according to research from Procore.

In a survey of more than 250 contractors in the UK and Ireland conducted in January, firms that had no visibility of performance estimated they were wasting an average of 3.5 hours per week, with average financial costs to each firm of around £265,626 a year due to poor performance.

Almost two-thirds (64%) of respondents are still using outdated manual tools, like spreadsheets, to measure performance – and when using such tools, they are often met with incomplete, inaccurate, and duplicated insights.

Those respondents that have visibility of performance said the benefits were not limited to time and cost savings, with fewer defects, better tracking of safety records and better compliance with standards.

The vast majority of respondents with visibility of performance “always” (42%) or “sometimes” (49%) share their metrics with their supply chains to improve project performance. A wide range of benefits from sharing were reported, with reduced downtime/delays and increased overall efficiency and productivity the most frequently cited benefits, followed by better supply chain management.

Brandon Oliveri-O’Connor, senior director of EMEA at Procore, said: “As an industry, we must look beyond manual tools and seek smarter construction-specific solutions which not only allow on-demand and real-time access to insights, but the ability to analyse and draw conclusions from it.

“Only this high level of visibility will help inform better decision making and free people up to focus on higher value tasks like budgeting, forecasting, and project management.

“At Procore, we believe that building what’s next starts with smarter construction and so, we’re committed to providing the highest level of visibility and the right technologies, such as AI, to help companies achieve even greater success as we emerge from the pandemic.”

Read the report: https://www.procore.com/en-gb/ebooks/what-gets-measured-gets-managed

Image: 5537963 © Ivan Mikhaylov | Dreamstime.com