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Better Communication Increases Profits for Construction Companies

by | Sep 2, 2020 | Construction Industry, Productivity

If you’re still relying on basic phone calls and emails to communicate with your teams in the field and/or office, it’s time for an upgrade. More efficient methods aren’t just about convenience. They’re about improving your company’s profitability.

Implementing a central system of communication, such as Microsoft Teams, can reduce wasted time. Chances are, you already have the technology to make that happen. Not taking advantage of the technology you already are paying for is leaving money on the table and preventing your company from being as profitable as possible.


How Poor Communication Is Affecting Your Bottom Line

Did you know that in 2018 alone, construction companies in the United States spent $31 billion on rework? Think of the last time your team had to redo something because of miscommunication or inaccurate data. All of that unnecessary rework adds up and has shown that about 61 percent of all construction jobs go over budget. In the vast majority of those cases, the way team members communicate is to blame. Microsoft Teams is a tool that can combat that rework that is killing your profit margins.

People in the construction industry know better than most that sometimes you just need to get your eyes on something to come up with a decision. The problem here is project managers can’t be on every site at once. How do those on the site communicate remotely to get answers currently? Are they even using a tool that is letting the PMs see what they are looking at? If they are, which platform(s) is being used? Is it the same for everyone including any subcontractors they are working with? If not, how do the PMs get a real sense of what they are making decisions on?

As you can see there are already that many questions that pop up and when things aren’t simple things get lost in the shuffle. Your PMs now have to remember all the different apps they need to use just to communicate with a team onsite. What if they are managing 10 projects and 7 of those teams are using different platforms to communicate. Talk about a time killer. That’s not even considering all of the confusion and burnt time that comes with just getting everyone on the same page.

Difficulties communicating have a huge impact on how laborers spend their day. Right now, with old-school coordination efforts, your employees are only spending about 37 percent of their time on the clock doing their actual trade according to JBKnowledge. That means two-thirds of their time is spent doing something other than completing your project.

Just five minutes of time per worker per day equates to 1 percent of your company’s labor productivity. Imagine how much labor productivity would improve if communicating with your teams didn’t take as long as it does now. Improving the way you communicate is crucial if you want your team to be efficient and create more profit per job.


Improving How You Communicate with Teams

You can adopt Microsoft Teams right now and leave those profit-draining issues in the past. Once you do you will start seeing vast improvements immediately.

For one, your project managers will have better control of job sites. They don’t even have to be physically present at those sites to ensure that everything is being completed according to plan.




They can stay at the office and hit multiple sites much quicker from one place that also connects to the files for the job. Or, they can work from home. With employers looking at work from home options as a new benefit to their workforce, having one place their people can go to communicate with everyone in the company on a job site or in the office makes a world of difference.

Those project managers working on multiple projects will be able to track jobs from one place. Everything from job scheduling to information from other contractors is stored in one organized digital space for easy access.

A better system can also decrease errors, which will reduce rework frequency. When someone on the field has an issue, the project manager can have digital eyes on the job site in no time. Mobile device cameras and a streamlined platform make it easy to provide clarification remotely, taking the guesswork out of the equation.

Office workers can benefit, too. A universal system provides a quick place to reach everyone on the field. There’s no need to search for numbers or hope that team members check their email. Platforms like Microsoft Teams come with a feature-rich chat system, which can save a lot of time.

Transitioning to a Better Communication Framework

We understand that making changes can be stressful. You might encounter some resistance when making changes for the company because your team is used to doing things a certain way.

The good news is that moving your company towards a better system is easier than most think and the monetary benefits greatly outweigh any resistance to change you encounter.

Your IT Support person/provider will just need to complete three easy steps:

  1. Check your Microsoft licensing
  2. Configure your file and team structure for optimal efficiency
  3. Help you train your teams.

That’s all it takes. Remember, saving just five minutes every day for every worker will boost your labor productivity by 1 percent. The more comfortable your teams get using Teams, the more time they’ll save. Most importantly his will reduce rework and increase your company’s profits even more.

 As we mentioned earlier, you are likely already paying for the technology so not implementing it and improving how you communicate is just wrong. The only question left is why isn’t your IT strategy taking full advantage of it?

Need Help?

Need some help transitioning your company to a better communication system? Schedule a call with us to talk about how we can help you with your IT strategy.

We have helped companies in the construction industry become more efficient than ever. Right now, we’re working with companies that have seen 5+ percent increases in productivity.

We can help you create a successful strategy and formulate a roadmap to ease the transition.

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