Asset management in construction is crucial for managing and maintaining your trucks, heavy equipment, tools, machines, building infrastructure and more.
No matter what type of business you run, asset management is an important aspect of it. The construction business is no different. Often overlooked, asset management in construction is crucial for managing and maintaining your trucks, heavy equipment, tools, machines, building infrastructure and more. Without a construction asset management plan in place, your business could suffer devastating losses.
What is Asset Management in Construction?
Asset management in construction is the ability to manage and monitor all of the items of value to the company and for the project. There are a lot of moving parts in a construction job, from the initial blueprints of the project to the final handing over ownership of the project 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 equipment asset management let you efficiently organize your resources. From intangible assets, like time, to small assets and inventory on a construction vehicle, to the parts needed to build your project, asset management helps your company grow.
Why is Asset Management in Construction Important?
Asset management in construction is important for construction companies because it helps provide the company – and its employees – benefits that keep it running a peak efficiency. Cost reduction and improved customer experience are just two things that construction asset management can provide.
While setting up an asset management program for your company may seem overwhelming and time consuming, it is worth the effort to do. It can help your company:
- Track vital assets and maintain a database of information on the assets that can be used later for various jobs
- Ensure that the data on each asset is accurate, complete and up to date, helping you produce reports for each job that are correct and prevent multiple audits
- Provide appropriate recommendations for construction equipment and personnel required for upcoming jobs
- Save time and money when bidding on jobs because you already know what assets are available and what new assets you may need to invest in
Benefits of Using Asset Management in Construction
So, what type of benefits does asset management provide your construction company?
You get clear insight of the life cycle and costs of all your assets.
Knowing what tools you have, where they are, and the condition they are in is where asset management helps your business. 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 it. Tracking the life cycle of your assets lets you plan ahead when things need to be replaced.
It reduces the risk of theft while at the construction site.
Unfortunately, the construction industry is a prime target for theft, frequently targeted by criminals and, according to a survey by the Chartered Institute of Building, organized gangs. Theft at your construction sites make is money from your pocket. By tracking all of your assets, from the smallest tool to the largest piece of equipment, you can improve the security of your construction site while reducing theft and the hit in your operating capital.
You know where your construction assets are at all times.
Your company has a lot of assets that are being transported to and from the job site, between job sites and left on job sites. By using asset management in construction, your assets become very easy to track. Plus, asset management helps eliminate ghost assets and lets you be proactive in maintaining larger equipment.
You get a manageable way to maintain and repair your equipment.
You want your business to be profitable. To do that, you need to ensure that all of your assets are working at peak efficiency. Asset management helps you log when repairs were made, when the equipment needs to be tuned up, and when it needs to be replaced. Reducing the amount of unexpected downtime because of equipment failure will save you money.
You provide your employees with a safe working environment and meet compliance metrics.
By maintaining your assets, you reduce the risk of safety hazards on the construction site, and potential injuries to your employees. It also allows you to meet ISO 55001 standards, keeping your assets optimized so that they can meet performance and safety requirements.
5 Asset Management Strategies for Construction Companies
- Choose the right people to be on your asset management team. Each department should be represented as asset management effects the whole company. This team will be involved in putting together and managing the assets of your company and the system that you will be using.
- Know what the life cycle of each of your assets is so that you can be ready to replace them when the time comes. This will reduce down time, allow you to make wiser decisions on the replacement equipment and show you the asset’s depreciation.
- Understand how each asset helps your business be profitable. Some assets simply do not drive profits for your business. When this happens, you have the opportunity to replace it with something that is. For example, when a construction truck started causing you to spend a lot of money to keep it in working condition, it is time to sell it or replace it with a new one.
- 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.
- Invest in and use construction asset management software. Analyze what your business needs to manage your assets before selecting a software. The software must meet the needs of your construction business and provide you with the most efficient way to manage everything.
Benefits of using Asset Management Tools Within Your Construction Organization
There are three main benefits to using asset management software for construction.
- The software provides your business with a record of the life cycle of each asset. From the time you purchase the equipment to the time you dispose of it, your asset management software keeps a record of everything that happens to it. It helps you determine when it should be replaced, and the costs associated with unplanned downtime.
- You can track the location of your assets in real-time using a variety of devices and technologies across multiple construction sites and construction vehicles. This helps increase productivity and reduces the lead time on jobs when equipment needs to be moved.
- It reduces the risk of theft at the construction site because equipment and tools are tagged and monitored at all times.
Typical Features Found in Construction Asset Management Software
Some of the typical features found in asset management software in construction includes:
- The ability to access the software on a mobile device through the cloud
- A variety of IoT (Internet of Things) enabled devices to choose from so that asset data can be located and retrieved instantly
- The ability to track assets that built “off-site” where data such as materials used, equipment on the site and documents can easily be audited
- An asset register with all of the data on a job that has been collected over time
- 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 real-time?
- Can I use it to manage tangible and intangible assets?
- Is there custom reporting built-in?
- How much training is required to learn the system and is it provided?
- Is the cost comparable with other software systems?
What Asset Management Software Can Offer Your Construction Company
With Apptricity’s Asset Lifecycle Management solution, your construction company gets 360-degree visibility to the inventory, tools and materials transported on every truck. You can track assets and personnel with greater precision — from warehouse to vehicle to work order. This reduces shortages and improves asset tracking. By eliminating misplaced assets and matching onboard inventories to daily job assignments, your construction crews can run more efficiently and productively.
You get full visibility into what assets are in stock, what is loaded onto the work truck and then put back into storage, in addition to calculated end-of-life dates as well as access to analytical reports detailing vehicle data and driver behavior. Apptricity’s Asset Lifecycle 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.