In a recent MarketWatch report, Procure CEO Tooey Courtemanche stated he believed cloud-based management solutions would save $100 billion in construction project money. The key was in the amount of time that was spent on rework.
Courtemanche's estimates were based on rework creating 10% of cost to the overall project but a construction Industry Institute report claims that rework can be responsible for two percent and twenty percent of contract costs on a project. That's a hefty variable with lots of money at stake.
Researchers have defined rework in several ways, generally describing a situation in which a certain activity is repeated because it was not completed correctly the first time. More directly "Doing something at least one extra time due to nonconformance to requirements" ( Construction Industry Development Agency (1995)
A few things can cause rework:
1. Bad Materials- when a material is delivered to a worksite that does not fit the quality or qualifications of the project at hand, this causes delay and rework as materials are reordered or replaced.
2. Labor Issues- if the labor is done incorrectly then the work has to be redone.
3. Communication issues- If changes are not communicated in a timely fashion work will continue and be incorrect which then leads to rework.
Courtemanche focused on communications, suggesting that with the onboarding of onsite mobile technology along with the advent of several types of cloud-based solutions to complement that technology, issues such as last-minute changes to a blueprint design or critical analysis of the work at hand can be done more efficiently and cost effectively.
As far as the other issues are concerned, having a supply solution platform on hand means that materials can be tracked and reordered almost instantly, contracts can be negotiated and signed online, and easy access to online supply markets.
Labor Issues can be reduced with more efficient means of surveying, oversight and communications.
From high-price commercial enterprises to smaller, residential projects embracing technology on the work site can enhance the worksite experience and save money.—CEG