New Study Shows Greater Automation of Project Management Processes Improves General Contractors’ Projects and Bottom Lines

A new report from Dodge Construction Network in partnership with Smartapp.com™ found that 53% of general contractors do not utilize a technology solution for the majority of their processes. The report, “Optimizing Digital Project Management SmartMarket Brief,” reveals that the digital maturity of general contractors varies widely across their core project management processes.

The study compares the performance of two sets of general contractors: those who have automated most of their processes, and those with less automation. It contrasts the contractors that rely on a mix of specific software solutions for every process to those that utilize a platform integrating these core processes together. Together the findings expose a trend toward digital transformation and platform use emerging in construction will help general contractors improve their projects and their businesses.

The study shows:

• The top five benefits reported by those using a technology solution for their project management processes are improved schedule and cost performance, better overall data collection from the jobsite, increased profitability and labor productivity.
• Currently, those who use technology solutions are largely deploying platforms (39%) or commercial point solutions (34%). However, the approach to technology use is fragmented, preventing greater integration.
• 86% of those with higher levels of digital engagement for processes experience notable value from their overall technology stack, far more than those with lower levels of digital engagement (58%).
• There is a striking contrast between those utilizing a platform approach to integrate most of their technology stack (93%) compared with those with fewer solutions integrated together on their platforms (70%).

“The findings show we are still in the midst of transforming how construction projects are managed,” says Steve Jones, senior director of Industry Insights at Dodge Construction Network. “Technology adoption has already taken hold among general contractors, but the value they experience will be magnified as they continue to integrate their solutions together.”

The study also demonstrates the challenges caused by the current lack of integration: 76% report experiencing data integration challenges, with many reporting both construction process and project outcome impacts. This can include, but is not limited to, accurate analytics, good budget control and cost predictability during construction, profitability for the general contractor, and slippage of the final delivery date on their projects. General contractors recognize these challenges, with 77% who find that consolidating functionality into more comprehensive solutions would improve the value of their technology investments.

“Building a sustainable forward-thinking strategy that uses data and technology-based solutions to solve every day jobsite problems is critical,” said Michael Colapietro, CEO & Co-founder at Smartapp. “At Smartapp, we understand the macro level issues of labor shortage, quality of workmanship, high risk work conditions, burnout, and profit erosion that are at play and we see the potential impact true digital transformation can have. The findings in this report illustrate how moving towards a single easy-to-use, unifying platform can better ensure efficiency, productivity and safety across the industry.”

The report contains more detailed findings and analysis can be downloaded here.