Asset Management in Construction: What You Need to Know for 2023

Asset management in construction is crucial for managing and maintaining your trucks, heavy equipment, tools, machines, building infrastructure and more.

Construction engineer manages assets on multiple construction sites.

No matter what type of business you run, asset management is an important aspect of it. The construction business is no different. Asset management in construction is crucial for managing and maintaining your trucks, heavy equipment, tools, machines, building infrastructure and so much more. Without an asset management solution in place, your business is missing out on a multitude of benefits that save time and money.

What is Asset Management in Construction?

Asset management in construction is the ability to manage and monitor all of your company’s valuable items necessary for projects. There are several moving parts in a construction job, from the initial blueprints of the project to the final handing over of ownership to the company that hired your business. With technology changing at a rapid rate and stricter building regulations being put into place, it is important to have the right asset management processes and policies in place.

Construction asset management lets you efficiently organize your resources. Whether intangible assets, such as time, or physical assets and inventory, such as the radios or tools in a construction vehicle, asset management helps your company gain 360-degree visibility.

Why is Asset Management in Construction Important?

Asset management in construction is important because it keeps your construction company running at peak efficiency. Any time an asset is lost, “walks off the job site,” or breaks down, downtime and process inefficiencies decrease the bottom line. Every construction supply chain manager understands that accomplishing projects by the deadline is vital. Obstacles such as unexpected weather are understandable, but when employees misplace expensive assets or heavy equipment misses its scheduled maintenance, the high-cost effects not only impact the overall financials but can drastically impact those expected deadlines.

While setting up an asset management program for your company may seem daunting or time-consuming, it is worth the effort to implement especially when working with IoT providers that tailor solutions to your company’s specific needs. Here are a few of the ways construction asset management solutions can help:

  • Track vital assets and maintain a database of information assigning assets to particular projects when available
  • Ensure that the maintenance history on each asset is accurate, complete, and up-to-date, helping you schedule maintenance in advance, thereby increasing the lifespan of your most valuable assets
  • Provide appropriate recommendations for construction equipment and personnel required for upcoming jobs

Benefits of Using Asset Management in Construction

So, what type of benefits does asset management provide your construction company?

Get clear insight of the lifecycle and costs of all your assets.

Knowing what tools you have, where they are, and the condition they are in is the core of construction asset management. When you monitor and track these items, you will know how much it costs to operate, when it requires routine maintenance or repair, and when it is time to replace that asset. Tracking the lifecycle of your assets decreases downtime and empowers your employees to finish projects more efficiently.

Reduces the risk of theft while at the construction site.

Unfortunately, the construction industry can be a prime target for theft due to the high-value assets associated with the industry. By implementing GPS asset tracking for your construction assets, equipment, and inventory, you reduce shrinkage as a whole. This feature also pairs with geofencing, permitting you to create custom zones in the software that alert you any time an asset leaves its designated location/breaks that geofence. By tracking all of your assets, you can improve the security of your construction site, create a stress-free environment, and prevent shrinkage.

Get 360-degree visibility anytime, anywhere.

Your construction equipment and assets are constantly transported to and from jobsites, across jobsites, and frequently left on jobsites overnight. By using asset management software for construction, your assets’ locations are available within seconds. GPS asset tracking is the ideal IoT technology for this since it quickly provides data regardless of where your asset is on the globe.

Easily manage and control maintenance, service, and repairs for your valuable equipment.

We all want our businesses to be profitable. Yet it is inevitable that routine repairs and scheduled maintenance will cut in to those profits. Asset management helps you log when repairs are made, when heavy equipment needs a tune up, and when its expected replacement date is approaching. As stated earlier, this will not only decrease downtime but will also make sure you make get the most life from your most valuable assets.

Provide your employees with a safe working environment and meet compliance metrics.

By having an asset management solution in place, you reduce the risk of safety hazards on your construction sites. In addition, you will reduce potential employee injuries from faulty equipment while ensuring compliance standards, keeping assets optimized so they can meet performance and safety requirements.

Four Asset Management Takeaways for Construction Companies

  1. Know your assets’ lifecycle status so that you are ready to replace them when the time comes. This reduces down-time, allows you to make wiser decisions on replacement equipment, and reveals asset depreciation. 
  2. Evaluate the condition of your assets on a regular basis. A quarterly evaluation is best and lets you address problems right away before they become severe. This helps extend the life of your assets.
  3. Invest in and use construction asset management software. This will let you assign assets to projects quickly, geofence important equipment, gain peace of mind with GPS asset tracking, and ultimately reduce shrinkage.

Important Features within Construction Asset Management Software

Some of the features found in construction asset management software include:

  • The ability to access the software on a mobile device through the cloud
  • IoT (Internet of Things) enabled devices that seamlessly update your software with relevant asset data that can be retrieved quickly
  • 360-degree visibility that can track assets across jobsites, locations, or anywhere on the globe
  • Lifecycle data for important assets
  • Notification and alerts for asset/inventory/equipment geofencing
  • Project management workflows
  • Maintenance and repair schedules for each asset
  • Budget tracking and forecasting

What to Consider Before Purchasing Construction Asset Management Software?

As you are researching the software you need for your construction company, ask the following questions about each software option you look at:

  • Does the software provide me with an accurate record of the lifecycle of my asset?
  • Can it track my assets in up to real-time?
  • Is there custom reporting built-in?
  • How much training is required to learn the system and is it provided?

What Asset Management Software Can Offer Your Construction Company

With Apptricity’s Asset Management solution, your construction company gets 360-degree visibility to the assets, inventory, tools, and materials transported across jobsites. You can track assets and personnel with greater precision — from jobsite to vehicle to work order. This reduces shrinkage and improves asset tracking. By eliminating faulty equipment and downtime, your construction crews can run more efficiently and productively. 

You get full visibility into what assets are available, calculated end-of-life dates, as well as access to analytical reports detailing asset information for future data-driven decisions. Apptricity’s Asset Management solution supports cloud-based computing, allowing users to have secure, accessible data wherever they are. 

At Apptricity, we know asset management

Let us help you with your asset management in construction needs. Contact us today for a demo.

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