Asset management is critical yet most likely overlooked aspect of your construction business, as it typically involves a wide range of assets like heavy equipment, trucks, construction machines, tools, and equipment to build infrastructures. Poor asset management can cause tons of losses to your construction company, which is a serious issue for you to ignore.
You need to redirect your attention to this aspect because proper asset management guarantees the maximum output of your obtained assets and enhances overall efficiency and productivity. And over time, it increases the company’s returns on investment which is a big deal to get into.
To fully understand asset management much better, particularly regarding your construction business, here’s a guide for you.
Why is Asset Management Crucial to Construction Site?
First, let’s define what an asset is. Generally, an asset is seen or viewed as anything of monetary value typically owned by an individual or business. In the construction sector, assets encompass but aren’t limited to equipment and machinery. Whereas, asset management in construction refers to organizing the step-by-step method of obtaining or developing, renewal or upgrading, maintenance and operations, and disposal of a company’s assets.
It can be classified into two categories – Asset tracking and maintenance and Asset procurement.
Asset management in construction is critical in the construction sector because it provides the company and employees many benefits that keep it running at peak efficiency. Improved customer experience and cost reduction are two of the many benefits that asset management can provide.
While setting up this type of management for your business might be time-consuming and overwhelming, it’s worth the effort to do. It can help your construction business:
- Ensure that data on any asset is complete, accurate, and up-to-date, helping you deliver individual reports. It also prevents multiple audits.
- Provide appropriate recommendations for personnel and construction equipment required for upcoming jobs.
- Save money and time whenever bidding on jobs because you’re already aware of what assets are available and what new assets you might consider investing in.
Some Tips You Can Apply for Effective Construction Asset Management
When asset management is done right the right way, the company must efficiently and effectively use an asset to achieve its desired goals and squeeze the greater value out of the purchased assets. Effective construction asset management reduces the costs and risks involved. It can also improve the delivery potential of the assets.
Below are some effective tips you can use on making asset management more efficient:
1. Have a comprehensive asset register
Make sure to maintain a construction planner and inventory list of all available assets you have. Include also why these assets are purchased, when they are purchased, maintenance history, and if they meet the expectations. It will help you improve your current maintenance actions and provide helpful insights you can refer to when buying additional construction tools, equipment, and upgrades.
2. Promote the predictive method for asset management
The reactive method to asset management will lead to unexpected project delays, equipment shutdowns, cost increases, and even safety risks. If you’re construction company has a budget for additional procedures, predictive maintenance is an ideal long-term maintenance strategy.
3. Monitor asset conditions, track depreciation and implement a rating system
The conditions of your assets must be known every single time. It should be known when the assets are expected to be withdrawn so that the asset’s lifespan can be identified and reviewed accordingly. Understand also how each asset can help your business be more profitable. Several assets do not drive profits in your company.
With everything you juggle, it might be hard for you to keep track of your assets. Hence, make sure a team will evaluate the asset conditions at least once every three months. Doing so will make issues easier to identified and various damages can be prevented earlier.
4. Work with continuous improvement
Construction asset management typically involves tons of moving parts and processes. Hence, your company has to strive to stay competitive in the market and look for ways to improve further. In fact, this can be anything, from updating outdated safety procedures and workflow to several improvements done in procurement processes and asset tracking.
5. Automate asset management with Inventory Management Software
Manually organizing the whole work is utterly inefficient. The most practical way to track, automate, and further optimize all management work, especially on your assets, is to adapt a modern tool designed to manage your company’s possessions. Having this tool deployed in your business makes your inventory a whole lot easier to track and manage, saving you more money, time, and, quite frankly, sanity.
6. Form a Winning Asset Management Team
As a construction business owner, it’s tough for you to manage and track every aspect of your business by yourself. Hence, you need the help of a team in every department, particularly the asset management section that often requires distinct supervision.
Therefore, you have to find highly professional and skilled people who are experts in asset management. If you owned a small-scale construction business, one to two people are enough to manage your assets. A dedicated team has to be formed for large-scale business because tons of equipment, machines, and fleets for operations have to be handled.
Make sure that your crew members are familiar with the software applications you deployed into the operations. Ensure also to prioritize construction crew management to supervise your crew better. Building a solid foundation for your crew makes the job done right.
6 Asset Management Features Your Construction Company Needs
1. Use of IoT Devices
Most modern project management software comes equipped with enabling technology that can help you more whenever tracking any physical assets. Most of these devices, commonly in GPS trackers, connect to retrieve and locate asset data instantly.
2. Mobile Access with Cloud
Cloud-based online inventory software can offer you many benefits for your business, with mobile access as the main advantage. And these mobile capacities, project managers, and crew members can access the system’s asset or inventory list whether they are on-site or off-site.
Having this specialized software allows everybody to access all data through laptop, smartphone, or tablet, via website or app.
3. Project Management for construction
A specialized management system can create a more utilized workflow and process for any of your construction projects. All improvements to the step-by-step workflow process can help increase productivity and reduce lead times.
4. Track Modular Construction Projects
A standard process is called modular construction when a project or a building is being constructed off-site. To have a successful modular construction, it must be built to the same standards and codes as on-site built facilities. Hence, with a modern tool for asset management in place, everything can be accessible from access key data, materials used, plant conditions, equipment information, and health and safety documents.
By tracking and storing an asset’s life cycle, you can understand when will be the asset is already at its optimal performance level or when it is repairing is necessary. With the information, it’s easier for you to generate an asset’s profile and better plan a repair or maintenance schedule.
As stated previously, when you begin taking a preventative maintenance approach, especially for your construction assets, the risks of unplanned downtime can be reduced.
6. Equipment Tracking
A construction site has a massive amount of assets. Some of these assets are owned by you and some are leased from a lessor company. When you choose to lease equipment rather than buying due to budget issues or perhaps a certain project requires special equipment, there are many instances.
Eventually, you and your team completed the project on time. And right after completing the project, the equipment has to be returned immediately. This is where the significance of equipment tracking is recognized. When choosing an asset management tool, there has to be a tracking feature.
Why Use Web-based Inventory Software for Asset Management?
The construction industry is an asset-based sector. In every task and operation, equipment and tools are necessary to complete the job. On a construction site, monitoring equipment, tools, machines of all sizes and shapes can be hectic. Good thing that today’s technologies allow you to track and manage your assets effortlessly and seamlessly.
When you deploy this cutting-edge tech, the more you will know your assets and the more you control your operations. You can also be able to make informed decisions that can propel your construction business towards growth. Only a cloud-based software tool like Pro Crew Schedule provides you a plethora of services.
Acquiring assets is a consistent practice in a fully functional construction company. It’s considered a critical part of the company’s operational cycle. Hence, the management of assets becomes mandatory. It’s crucial that you get 360-degree visibility of the tools, inventory, and materials you have in your business.