Tips for Saving Money on Construction Projects - e-Builder
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#3: Project Savings Cost - 6 ROI Indicators of Owner-Centric Project Management Information Systems

Monday July 3, 2017      |      By: Alyce Menton

Staying on schedule and opening the doors to your facility on time can have a large impact on revenue generation or in reducing financing costs.

See how Inova Heealth System was able to save approximately $100 Million.

By improving staff productivity, accelerating the flow of information, and reducing the number of iterations on key processes, owners can realize multiple millions of dollars in savings from their construction programs, compared with the hundreds of thousands of dollars they might spend on PC teams and PMIS software. For example, when payments to contractors are expedited, not only are late-payment penalties avoided but contractors are incentivized to work for you and offer more competitive bids. Contractor carrying costs often attributed to long payment cycle times are reduced. Change order pricing is generally fairer, and it takes less time to discuss or negotiate the final cost since submitting, tracking, and approval are done digitally through a consistent workflow in your PMIS.

As an example, a PMIS, Building Information Modeling (BIM), and firm stakeholder design-review processes early on in a project greatly reduce the chance of operational disruption and rework costs. For example, health care facilities have some of the most complex and costly MEP (Mechanical, Electrical, and Plumbing) requirements. If equipment vendors and end stakeholders aren’t actively involved in verifying that the design meets their requirements, costly demolition and rework can be required after construction, which disrupts your facility’s operations. Many owners have reported hundreds of thousands of dollars were spent on post-construction rework scenarios where the facility didn’t match the equipment requirements. When a facility is closed, it isn’t generating revenue and puts a strain on other facility resources.

The following are more resources on this ROI tip!

http://e-builder.net/webinars/demo-keeping-invoice-payments-time

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