Acquiring and managing assets are essential practices for fully functional construction companies. However, asset management in the construction industry is often overlooked or not given the seriousness it deserves, with more focus placed on asset procurement alone.
Effective asset management ensures maximum productivity, continuous improvement in efficiency, and increased returns on investment for the company. To gain a better understanding of enterprise asset management system, particularly in the construction industry, let's delve deeper into the topic.
What is Asset Management in Construction?
Asset management in construction involves the ability to manage and monitor all valuable items required for construction projects within your company. A construction project entails various components, starting from the initial blueprints to the final transfer of ownership to the client. Given the rapid pace of technological advancements and the implementation of stricter building regulations, it becomes crucial to establish proper asset management processes and policies.
Construction asset management allows for the efficient organization of resources, whether they are intangible assets like time or physical assets and inventory such as tools and radios in construction vehicles. It provides your company with 360-degree visibility over its assets.
Why is Asset Management in Construction Important?
Asset management is vital in construction as it ensures optimal efficiency within your construction company. Any loss, misplacement, or breakdown of assets leads to downtime and process inefficiencies, which directly impact the company's bottom line. Meeting project deadlines is crucial for construction supply chain managers, and while unexpected factors like weather conditions are understandable obstacles, losing expensive assets or neglecting scheduled maintenance for heavy equipment can have costly consequences, affecting both financials and deadlines.
Although setting up an asset management program may seem daunting and time-consuming, the effort is worthwhile, especially when working with IoT providers who offer tailored solutions based on your company's specific needs. Here are some ways in which construction asset management solutions can help:
- Tracking vital assets and maintaining a comprehensive database, assigning assets to specific projects when available.
- Ensuring accurate, complete, and up-to-date maintenance history for each asset, enabling proactive maintenance scheduling and extending the lifespan of valuable assets.
- Providing appropriate recommendations for construction equipment and personnel required for upcoming jobs.
Benefits of Using Asset Management in Construction
- Understanding and Predicting Construction Equipment Lifecycle
Construction equipment is expensive and often susceptible to theft. Asset tracking helps increase security and allows construction managers to coordinate work across multiple sites by knowing the location of assets. Effective asset monitoring enables early detection of assets requiring major maintenance, achieved through routine maintenance tasks and condition monitoring sensors that provide alerts when asset components start deteriorating. As a result of this advancement, construction managers experience enhanced construction equipment efficiency.
- Reducing the Risk of Theft at Construction Sites
The construction industry is a prime target for theft due to the high value of assets involved. Implementing GPS asset tracking allows you to reduce shrinkage by enabling asset and equipment monitoring. Geofencing can be employed to create customized zones that trigger alerts whenever an asset leaves its designated location. Tracking assets improves site security, creates a stress-free environment, and prevents losses.
- Achieving 360-Degree Visibility Anytime, Anywhere
Construction equipment and assets are continually moved to and from job sites, making their location information crucial. Asset management software with GPS tracking provides instant asset location data regardless of the asset's location, ensuring comprehensive visibility.
- Ensuring a Safe Working Environment and Compliance
Implementing asset management solutions reduces safety hazards at construction sites, minimizing the risk of employee injuries due to faulty equipment. Compliance standards can be met, ensuring assets are optimized to meet performance and safety requirements.
- Budget Tracking and Forecasting
Data collected throughout each project enables accurate cost comparison and forecasting, allowing for better budget management in future projects.
- Maintaining Accurate Data and Up-to-Date Records
Asset tracking improves the gathering of critical equipment data, enabling well-informed decision-making. By analyzing asset usage patterns, identifying missing assets, and assessing asset groupings, valuable asset reports can be generated. These records and reports aid decision-making processes, such as asset replacement, government reporting, and minimizing downtime and delays.
7.Streamlining Maintenance, Service, and Repairs for Valuable Equipment
Asset management allows for efficient tracking of repairs, scheduled maintenance, and equipment replacement dates. By logging these activities, downtime is minimized, and assets are utilized optimally, resulting in extended lifespan and increased profitability.
The construction industry needs effective asset management for several reasons. It guarantees effective resource use, cutting down on waste and unnecessary spending. The project timelines become more streamlined as a result, making planning and scheduling easier and more precise. Furthermore, good asset management increases site security by ensuring that machinery is kept up-to-date and in working order. Implementing sound asset management procedures can significantly increase the construction industry's productivity and profitability. Hence, whether you work in the construction industry or own a business, it's time to give asset management top priority and enjoy the advantages it offers your projects.