If you’ve heard about the benefits of construction project management software but you’re still not sure if it’s the right approach for you, you’re in the right place. It shouldn’t be a surprise that skilled and efficient project management can help propel your construction company further ahead, but you might be shocked to know how much the right construction PM software increases your chances of success.
To help you see just how important this investment is, I’m going to get to the facts. First, I’ll give you a quick overview of what PM software can do. Then, I’m going to take a look at 21 statistics to prove that investing in the right project management tool is definitely worth your while.
What Is Construction PM Software?
Project management software is used in many industries but there are some benefits unique to the construction industry. Construction PM tools help you do everything from creating worker schedules to billing clients to helping with document filing and control. PM programs also have inbuilt cost control and budgeting tools so you can track costs and set up alerts for if it seems like the project will go over budget.
Most PM software is hosted online in the cloud, which means that anyone can collaborate on it wherever they are. This is useful for minimizing liability and creates a central repository that anyone with the proper permissions can access. Virtual, real-time collaboration makes it easy to review and modify plans, knowing that everyone on the team can access the new changes quickly and reliably.
Who Is Construction PM Software For?
Construction PM software comes in all shapes and sizes and can be adapted to any set of needs. Here are just a few examples of how different groups can use PM software:
- Small businesses – You are looking to make a splash with new clients and continuously wow your ongoing relationships. The right PM software will give you a level of credibility over the basic Excel sheet and/or pen-and-paper.
- Mid-sized Businesses – Your contacts are growing day-by-day and you don’t want to let a single pitch follow-up or cold call go unheeded. PM software can help ensure that no one gets forgotten, particularly if they offer certain workflow automation like email check-ins.
- Enterprises – Spreadsheets aren’t going to cut it. It’s no longer a matter of IF you need construction PM software but, rather, which platform you like best. You need something smart and intuitive to bust down departmental silos and keep everyone on the same page.
Now that you know a little bit more about what construction PM software can do for you, let’s take a look at the facts that prove it.
21 Stats That Prove The Benefits Of Construction Project Management Software
1. Only 22% use a PPM or Resource Management software solution.
This report from Wellington UK showed that only 22 percent of organizations use some type of project management software. Why does this matter? Because if other companies are slow to get on board, you’ll be ahead of the pack. Imagine the advantages of using highly polished and effective PM software while your biggest competitor is still entering data into simple spreadsheets and managing projects by hand.
2. 77% of high-performing projects use project management software.
According to this Pulse of the Profession report from 2017, 77% of high-performing projects utilize PM software. This number has, by now, most assuredly gone up. Unless you are an anomaly, it’s best to take a look around you and concede to trends that seem to be working. Some advice I always give is to look at success stories and work backward to see how they got where they are. If PM software is attached to a high-performing project, then consider getting onboard.
3. 66% of project managers would use PM software extensively, but they don’t have enough support from their organization.
When asked, two-thirds of all project managers say they would love to use PM software more but they don’t have the support of their organization. If the people getting their hands dirty managing construction projects want to adopt a construction software solution, why wouldn’t you make that happen? Worst case scenario, you use up a free software trial or two and then bow out. Best case scenario? Your projects become more efficient, cost less, and deliver better results.
4. 70% of users are satisfied with their current PM tool.
This is a great statistic because it shows that users are willing and ready to onboard for a new PM tool. So don’t hesitate because you are not sure your team will be up to the change; most are! Why? Because PM tools have significant gains in many areas, including completing projects on time, team collaboration and communication, heightened product quality, completing under budget, and producing accurate cost estimates.
5. Team communication improves by 55%.
Communication is the key to getting work done efficiently, and construction management tools can help improve communication on your team. PM tools can help elevate communication through customized alerts and notifications, deep email integration (Gmail, Outlook), in-app messaging, @-tagging, and fun elements like emojis, GIFs, and animations.
6. 90% of businesses that use open source project management tools reported increases in innovation and efficiency.
Innovation and efficiency are both keys to growing your organization’s reputation and client base. Open-source project management tools add an extra layer of flexibility and customization to your workflow. This is because they give you full access to the application’s code so that you can experiment and innovate. Anyone who has ideas for homegrown integrations and plug-ins would do well with looking into open-source PM software.
7. Project management software saves managers 10 minutes a day or 153 hours a year.
That’s almost four weeks of work. Construction management tools for PM also save each team member about 20 minutes a day or 498 hours a year, the equivalent of nearly 12.5 weeks of work! See? I meant it when I said this kind of construction software solution increased efficiency. Use all that saved time to spearhead new projects or treat your team to a pizza party.
8. For every $1 billion invested in the United States, over $122 million is wasted because of poor project performance.
While this might not affect your organization on quite as large a scale, it’s safe to say that poor project performance is a significant problem in every industry. Investing in construction project management software is one way to make sure this doesn’t happen to your business. The right PM software will track and report on project performance so that you can fix issues as they arise and before it’s too late. The best PM tools will have a robust reporting suite, meaning that you can pull data from past projects in order to learn from your experiences and grow from them.
9. 70% of organizations experience at least one project failure in a 12-month period.
Plus, 50 percent of people surveyed indicated that projects consistently failed to get the results they were hoping for. Certain levels of experimentation and failure are inevitable. But PM tools can help you automate alert systems to make sure nothing ever goes so far into the red that it can’t be recovered. Additionally, having a cloud database packed with past projects lets you dig deep into collective data that might reveal weaknesses and bottlenecks that contributed to low performances in the first place. This can help you to avoid repeating your mistakes.
10. 9.9% of every dollar is wasted due to poor project performance.
Wasting money is not a good way for a business to succeed and it’s only one of the costs of poor project management. Construction PM software is one way to analyze not only how the project is proceeding, but where it might be going wrong so you can deal with problems before they get too costly.
11. Agile organizations grow revenue 37% faster.
When a company is agile, it means they are quick to pick up on changes and trends and adapt to them to stay current in the marketplace. In construction, project management software helps you keep track of your progress and where you are in a project so you can adjust as needed. Plus, since these tools also facilitate communication, everyone will be on the same page when changes have to be made.
12. Agile organizations also generate 30% higher profits than non-agile companies.
Every business wants to make a profit. Project management is key to remaining agile, and it can pay off big time in the end. There are platforms that specialize in agile project management if you are looking to take this on but need some help getting started.
13. Agile projects are 28% more successful.
There is no better way to grow your reputation and customer base than by completing projects successfully. Agile companies have more successful projects in the end and, while many factors go into being an agile company, tools like job costing and construction scheduling software can help you get there.
14. More than 50% of all projects fail.
If you’re worried about being on the wrong side of this statistic, it’s essential to do as much as you can to ensure your organization’s success. Project management software helps you track every step of the way so you can reflect and adapt when needed.
15. The top two causes of project failure are a change in organizational priorities (39%) and a change in project objectives (37%).
In some cases, not much can be done about this, but the more data and information you have available, the more likely it is that you’ll catch problems right away. Then you can decide if it’s worth moving forward or if it’s time to throw in the towel.
16. 32% of executive leaders believe that investing in the right technologies is the biggest factor in future success.
Technology advances quickly, and we’ve all learned how important it is to adapt. There is no doubt that investing in the right technologies will help you in your business, and a construction project management system is a step in the right direction.
17. 70% of companies prioritize a culture that focuses on delivering customer value.
Ultimately, construction PM software helps you deliver value to your customers by managing each project as efficiently and effectively as possible. It will help you deliver a high-quality product to the customer, on time, and under budget. This is true of just one project or multiple projects concurrently.
18. 71% of project professionals believe that the perceived value of PMOs will increase.
People are getting more and more confident in the field of project management itself, which is even more of a reason why you should invest in project management software. This field is only going to continue to grow as people see the value in it, so take advantage of the time you have to get a head start.
19. The biggest challenges to adopting agile techniques to an organization are the resistance to change (48%).
We know change is scary, but it’s inevitable. Adapting to it is the only way to keep on thriving. If employees are hesitant to embrace construction software because they’re used to doing it another way, that’s not really fair to the rest of the business. There are a lot of ways to grow a business, and they all take guts. Encourage your employees to embrace the change to a construction management software tool.
20. Lack of leadership participation is the second biggest challenge of adopting new techniques (46%).
If you decide to go with a construction management tool for your business, you must embrace it wholeheartedly. In addition to encouraging employees to accept it, you must also ensure that everyone from the top down has adequate training on any new software and that every employee knows what is expected of them.
21. 54% of the projects of companies with low project management technology maturity go over budget.
Another statistic that is not very surprising. If you’re not adequately tracking your spending in relation to your budget, how do you know when you’re going to go over? There’s no substitute for good project management techniques, and the right tools – including the right construction estimating software – help you stay on the right track.
The Benefits Of Construction Project Management Software
We have one more statistic for you: 56 percent of organizations state that cost is their main reason for avoiding PM software. That is a valid point but, on average, organizations spend about $861 per month on this type of software.
Depending on the size of your business that might be a lot, or it might be a drop in the bucket. But if using the right project management software can improve everything from your relationship with your customers to your time management to your costs, you need to decide if it’s worth it for your business.
Is faster growth and more successfully completed projects worth $861 a month? No one can answer that for you. But, before you shy away from project management software because you think it’s too expensive, consider the potential benefits. You just might come out far, far ahead in the long run.
Convinced to consider using construction project management software? Now check out our guide to the best construction project management software tools.
Learn about the 5 Ways Digital Tools Could Transform Project Management In Construction here.
For even more construction project management tools, check this list out of the 10 Best Online Construction Project Management Software.