In recent years, Singapore's economy has entered a period of low growth, and the growth in construction industry has been a downward trend, which decreased to 2.5% in 2015, and this situation did not improve during New Year time. According to Ministry of Trade and Industry Singapore (MTI), due to the weak demand in 2016 orders for construction companies have decreased while facing manpower shortage. Low margins, intense competition and demand for faster completion times increase risk and put pressure on construction firms. Seen from industry development, companies which place high importance on growth rate and getting orders but ignoring costs would be hard to sustain in the long term.
Therefore, how to control costs, improve internal productivity and achieve operational efficiency is the key to achieving profitability and sustainability. To achieve this, project-driven firms in construction require an integrated and construction-centric solution – one which provides enables process efficiency, helps minimize cost overruns and provides full project visibility. Find out how to take advantage of Yonyou Construction Project Management Solution to bridge the gap in construction realities through digitalization and informationalization.
Efficient construction companies built their market reputation by completing challenging projects on time and within budget by increasing productivity while mitigating risk. Success depends on ability to evaluate complex project requirements, select priced raw materials and schedule subcontractors all at the right pricing.
Comprehensive contract management system is focused on the signing and execution process on all types of contracts. It is closely linked to the bidding and tendering processes, supplier management and variation order management. It also helps manage contract payment and collection which provides the visibility for enterprise to grasp the cash flow situation..
While focusing on revenue building, saving on material procurement can help construction firms increase profits. Material procurement and management process must manage supplier performance and risk, consistent quality and ensure process efficiency along the whole material management chain.
Comprehensive material management must able to link material procurement plans by QS estimation; to determine the actual purchase orders through the correlation between procurement plan (in both group level and project level) with project progress; to determine material usage based on purchase orders and material in/out of storage and on-site management. Construction firms must have the visibility to the materials plan and actual materials usage.
One of the key objectives of project delivery is keeping projects on track and within budget. Cost Management becomes imperative in improving financial visibility of projects. Gain visibility into project budgets and proactively manage costs to control overall project financial health.
Establish the three-dimensional project cost management system of contract budget, project target costs and actual costs .Set the contract budget as core and target cost as control point to control the project actual cost. Comparison of actual cost movement between each cost component (material, labour, equipment, subcontractor, etc) of each project in real-time basis.
Cost Management provides a complete integrated cost management solution which empowers managers with timely, detailed project cost information to monitor project performance and take corrective actions.
Project Progress is a key activity of project management with project manager issues regular progress reporting against budget, schedule and scope. Track and manage project issues and anticipate project variables to limit impact to schedule.
Multi-dimensional project progress management system - It realizes project progress management through the professional line management, overall project milestone management, and set up time node with every project level. Powerful early-notification can assist project manager to manage key milestones during the construction progress in a timely and accurate way.
The construction industry is facing shortage in skilled labour and experienced management executives. Talent management has been identified as a key differentiator where forward-looking firms are innovating in the areas of human capital management.
As construction industry becoming increasingly sophisticated with highly collaborative construction processes linking with external partners, firms need the tools to hire and manage people with the right skills.
Consolidate HR processes into a common global platform to unify manpower data, streamline processes and meet compliance with deep industry functionalities on Core HR, Payroll, Employee & Workers Management, Time & Attendance and Workforce Planning.
In construction firms, the finance department is increasingly becoming the driving force in enhancing productivity gains, increasing efficiencies and cutting costs whereby their responsibility cuts across the entire construction organization.
CFOs need to help organization to deliver projects at reduced cost and exceed financial objectives contributing to increase in shareholder value.
Finance system which allows historical as well as forward-looking visibility into both financial and operational performance often leading to higher profit margin for construction firms. Robust finance processes and functionalities in Accounting, Fixed Assets, Cash Management, Budgeting and Enterprise Financial Reporting allowing people to work together more efficiently and utilize data insights to make critical financial decision.
Integrating project operation with financial transactions and analysis drives success in construction lifecycle and meet stringent demand from project owners. More often than not, typical billing system is not able to handle variations required by client within construction lifecycle such as by percentage complete or by milestone.
Project Reporting and Analysis help construction firms manage cash flow with close management of the entire collection process – from invoice billing to payment tying with project work done.