I mentioned last week that I was busy preparing for the World of Concrete trade show in Las Vegas. Well, I’m now in Vegas, and as some of you may already know, Dexter + Chaney has a new product line! I don’t usually discuss Dexter + Chaney’s products, but I am too excited after the many months of hard work and interviewing industry experts not to introduce Venture Project Collaboration Software. So bear with me while I crow a bit about our new addition!

Venture Basics

Venture is web-based project collaboration software built around the needs of construction project teams, not individuals. Most of the construction operations software available today is designed for individual use and focused one specific function. Venture is designed for the entire project team and provides tools that help folks work together throughout the entire lifecycle of a project. Venture tools are built to give contractors visibility and control over three key areas of construction operations:

• Documentation
• People
• Communication

Document Management

It’s no secret that documents play a vital role in the construction process from beginning to end. But all of those documents and versions of documents are difficult to keep track of, not to mention expensive to print and distribute. Venture allows users to control document distribution, usage, and versioning from within one application.

Build the Best Team

When I played basketball, my coaches routinely told us “There’s no ‘i’ in team.” Similarly, construction projects aren’t completed by individuals. From start to finish, it takes a team working together to complete a job. Venture helps you manage your contacts using construction specific criteria, invite potential partners to bid on work, and even prequalify subcontractors, so you create the best team for the job.

Project Communication

I remember the amount of time I used to spend as a general contractor following up on project notifications and issues. Venture connects project participants inside and outside your company with the latest project information. When you send a notification, you can see who has opened and responded to it. With the ability to access information from anywhere, at any time, and track responses to notifications, your project teams will be able to communicate more efficiently on projects, saving time and money.

So now that I’ve done a little bragging, I’d like to know what you think. Please let me know your thoughts on Venture by commenting below.

The end of December didn’t just bring about New Year’s resolutions – it brought the end of the yearly accounting cycle. Needless to say, most accounting departments are rather busy right now. While talking to some other accountants, I was surprised to learn how many people still don’t file electronically.

Whether you have a simple accounting application, or a specialized construction accounting system, you should be able to file your taxes and payroll information electronically. Not only will this save you time, you’ll reduce the chances of making a mistake that could cost you later in the way of penalties and fines.

Electronic filing shouldn’t just be limited to your taxes, though. Keeping documents as electronic files reduces paper waste and clutter in your office because you can get rid of the filing cabinets. Electronic filing also gives you the ability to search with simple keyword terms, so you can find documents faster. Are you doing any of the following electronically?

• Archiving documents
• Filing payroll taxes
• Filing W2 forms
• Managing 401Ks

If the answer was no to any one of these, you have an opportunity to make your accounting office operations much easier. So my suggestion as you go through year end is stop and think of how you’re doing things currently, and investigate some tools and practices that will improve your processes. Be sure to make your accounting software work for you, and while you’re at it, reduce the time and resources you and your staff spend filing.

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Last week, I discussed how the Internet is becoming a utility via common applications. This is all well and good, but I know from the emails I received, I left some of you thinking “how does this affect me?” Well, there are three very important reasons to care, but I’ll get to those in a minute.

Remote Business Software

Until recently, most business software was delivered on discs in packaged boxes, or downloaded onto company servers and workstations. Now, as the Internet becomes more and more of a utility, access to software only requires an Internet connected device and a subscription login.

In an effort to make access easier for their employees, some companies are moving all or most of their software and computing resources to an outsourced hosting service. While there are advantages to this type of so-called virtualization model, it is not a true browser-based or “Cloud” solution. </P

The following explains three significant benefits of moving to the cloud.

3 Reasons to Move to the Cloud

1. Access: Browser-based software provides anywhere, anytime, any-device access to business applications. Unlike virtualized environments, browser-based software typically only requires that the device – computer, tablet, smart phone, etc. – have the ability to launch a browser. With this technology, management can access up-to-date business information anytime, anyplace and field staff can stay better connected to the office and to each other.

2. Usability: I think most Internet users expect anything in a browser to run quickly and easily. This means that the user interfaces of browser-based applications must be designed for ease-of-use, and information must be presented in an easy-to-understand format. Vendors moving their software to the Internet are redesigning the way the software is used, creating smarter, easier to use products.

3. Affordability: Browser-based software should not only make users jump for joy, but management should be pleased with the lower costs of ownership. Companies generally have the option of purchasing the software or purchasing on a subscription basis. Regardless, the user enjoys a significant reduction in hardware and IT infrastructure costs. Figure 1 shows the leading reasons why companies adopt cloud computing solutions, and cost is clearly a primary motivation. Browser-based software is “zero-footprint,” meaning that no server and no special user hardware are required. From an IT perspective, there is no software to install, update, and maintain.

Better Business

The growing wave of business software over the Internet holds particular promise for the business of construction contracting. Unlike many other industries, construction occurs in remote and varied locations, every project is unique, and nearly every new project involves a new collection of project partners and vendors. In addition, project information is constantly changing, it must be shared with many individuals in many locations, and there is always a lot of it. The benefits of browser-based software help share this information by keeping everyone connected.

It seems like every time I turn on the television, I see a commercial for something “in the cloud.” There used to be commercials from a well-known company that proclaimed in a super-hero-like fashion, “To the cloud!” And most recently, we’ve been hearing quite a bit about the iCloud.

I’d be understating the obvious if I said that cloud computing is the latest buzzword. However, I think there are a number of misconceptions about what the cloud really is, so over the course of the next couple of weeks, I’m going to help clarify the basics of cloud computing.

Power Stations & The Grid

To begin a discussion of cloud computing, let’s draw some analogies from the world of public utilities. Take for example electric power distribution. When electric utilities were developed, power stations were first built in high population areas. Buildings and then entire neighborhoods were connected to the stations, and then the stations themselves were interconnected, beginning the creation of what we know today as “the grid.” This robust network of power allows us to turn on the lights and never have to wonder where the power is coming from. This is the essence of cloud computing – A network that serves up what you need without you having to worry about where it came from.

More Pipe Than Power

Now consider the Internet. Instead of centralized stations, the first years of the Internet consisted of network growth. From the first network connections of the 1960s until recently, the Internet has been “more pipe than power,” serving more as a network of connections than a distribution grid. To draw an analogy, imagine a situation in which individuals connected their own personal power generators to create a shared power grid. This is not a viable way to distribute power resources, but for sharing bits and bytes, it works fine. However, something was missing from this picture – namely, the equivalent of the “power station.”

A New Utility Is Born

Roughly ten years ago, the large and growing network of “data pipes” that was the Internet began to transform. Advances in technology enabled this transformation, but what really drove it was the fact that the Internet was finally becoming a true utility, taking over much of the role of traditional telecommunications. The Internet is now supporting the operation of central “power plants” – plants with names such as Google, Facebook, Amazon, and others. Internet traffic is projected to continue doubling every two years, and the driver will be the larger and larger role it will play as the information utility.

A New Breed of Applications Emerges

In addition to the “Internet power stations” that deliver communications and consumer applications, we are seeing the emergence of browser-based applications designed for business. Software applications for business have traditionally been delivered as discs or downloads installed on company servers and workstations. With the Internet becoming an application utility, this model is changing. More and more software can be accessed online with nothing more than a subscription login and a device that has one of the common web browsers. And these are not light-weight “apps” – these are powerful enterprise systems for accounting, financial management, project management, HR, and more.

Accessing and processing all your business information may never be quite as easy as flipping a switch, but browser-based software (a.k.a. cloud computing) is going to bring us closer to that idea. Has your company adopted any browser-based business software or do you plan to?

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When you’re in the market to purchase construction software, it can be easy to get caught up in the bright lights of features and functionality. After all, you decided to look for software after realizing you needed those features. However behind the lights is the technology on which the software runs.

Look Under the Hood

When you’re looking for a new car, more than likely, you take a look under the hood, or at the very least, the mechanical specifications. You should do the same with software. While most of your interaction with a vendor tends to be with the sales and marketing departments, you should research the development team as well. Are they using Waterfall or Agile development? These methods make a difference when updates and new versions are rolled out. Consider the accessibility of the software and how it operates. Can you open any browser and use the software, or does it require third-party software such as Citrix to make it accessible via the Internet?

Only Buy Your Software Once

Although cloud computing looks to be the way of the future, many construction software vendors currently distribute their software on CDs or DVDs. Here’s some cautionary advice: Be sure you know the process and costs for upgrades from version to version. After your initial purchase, you can expect to pay fees for software maintenance (to keep it running) and support (because you’ll inevitably need it). However, there are vendors out there who will require you to re-purchase the software if they make significant changes and release a new version.

Good Old Fashion Support

Features and technology aside, when you chose construction management software, you chose the company that comes with it. And no matter how easy-to-use or bug-free the software may be, there will come a time when you need some help. Make sure any vendor you’re considering offers the one thing that is sadly becoming rarer these days: a real person, one who works for the company, who will pick the phone up when you call and stick with you until your problem or needs are resolved. This may seem like obvious advice, but I’ve talked to too many folks who have been burned by poor service to not mention it in this blog.

I know I threw out some technical terms initially, but I felt these were important to mention. If you have any questions, please don’t hesitate to contact me by either leaving a comment or emailing me directly at jchaney@dexterchaney.com. I promise a real person will respond and there won’t be any annoying elevator music.

When selecting new construction software, determining your company’s needs is vital. A common approach is to create the required features “shopping list.” Unfortunately, your features may not translate into a specific software solution. For example, you might require project management, but if you do a quick search, you’ll find there are numerous project management solutions that range from simple to complex. Although every company has their own set of business needs, the following are a few things to look for when evaluating construction software vendors.

Job Cost & Cash Flow

In my post about determining when you need construction software, I mentioned that controlling project costs is a key reason to purchase new software. So it makes sense that any software you consider should offer comprehensive job cost and cash flow solutions. Rather than looking in the review mirror after a job is complete and realizing you’re over budget, make sure you have the ability to import estimates, manage change orders, report on committed costs, and allow your employees in the field remote access.

Reporting

I’ve often heard of software acting like a black box – data goes in, information comes out, but you’re limited to what the black box can produce. Your construction software should not be a black box. Rather it should work the way you and your employees need it to work. Look for software that lets you “get inside the box” and report on information the way you want it, in the format you need it.

Integrated Document Management

For most companies, paper is still a big part of our day to day work. To help you manage your paper, look for systems with document imaging and management that go beyond “scan and store” capabilities. You should be able to search the text of the documents, not just the file names. The application should also integrate with other applications, allowing you to associate documents with your AP, AR, payroll, HR, etc. If you’ve ever spent more than a few minutes searching for approved change orders or time cards, you’ll quickly realize the advantages of this type of system.

While these things are important, there are many more that you will most likely need to consider when deciding on the right application for your business. And despite my comment at the beginning, there’s nothing wrong with making that feature-based shopping list. Just don’t neglect the fundamentals when you go shopping.

How do you approach software and technology purchases in your company?

It’s that time of year again…the leaves turn colors, the days are cooler, and construction companies start to evaluate their construction software and consider if it’s time to purchase something new. I’ll be honest (and this should come as no surprise) – I’m biased when it comes to construction software. Of course I want everyone to purchase Dexter + Chaney’s software, but the reality is, it’s not a fit for everyone. With this in mind, I’ve created some points to consider when making the switch to a new construction software application.

You Know You Need New Construction Software When…

Whenever we talk to companies who are looking to purchase new construction management software, we always ask why they are looking to switch. Over the years, I’ve heard a lot of different answers from the practical – “We’ve out grown QuickBooks and our spreadsheet processes,” to the emotion based, “I just don’t like our current software.” While there are numerous reasons to change software applications, there are two that regularly come up in our discussions with prospective clients: cash flow control and project cost control.

Back to Cash Flow

A few months ago, I discussed cash flow and how poorly managed jobs, floating funds between jobs, and letting cash flow get out of hand can quickly lead a construction company out of business. It should come as no surprise then that companies looking for new construction software want an application that will give them greater control over their cash flow. To obtain greater control, you need software that will allow you to input data once and use that data to analyze your cash flow situations. A general contractor once told me that his accounting staff used to input time cards into their accounting software and then input the same data again in their job costing spreadsheets. By the time a week’s worth of time cards had been entered into the systems, it was time to do another batch of them. This left the project managers with inaccurate information on their jobs, and the accounting staff up to their eyeballs in timecards. While this may be an extreme case, if you find that you’re entering data without gaining visibility into where your cash is going, it might be time for some more sophisticated software.

Control Project Costs with Integration

It’s easy to figure that when you’ve spent 50% of your budget, you’re 50% complete with the job. Unfortunately, this isn’t always true, and you may not realize it until the end of the project when you’re drastically over budget. Up-to-date information plays a key role in better managing your project costs, and the best method of ensuring your information is current is to connect the field with the accounting office. This doesn’t just mean making sure everyone has a working mobile phone and Internet access on the job site. This means your project management software integrates with your accounting software, ensuring that information is not only accessible, but current as well. If you have a high volume of work, or you’re finding it difficult to get an accurate idea of project health, then you should consider a system that integrates your project management and accounting applications.

Cash flow and project cost control are only two of the indicators that you may need to consider better construction software, but they are vital and can make or break your business. What other problems do you consider when deciding if it’s time to switch your software?

You probably remember the telephone game from when you were in school – the one where you start with a sentence and whisper it to a friend, who whispers it to another, and so on. By the time everyone hears the phrase, it’s completely different, and may or may not have any of the initial words.

What does the telephone game have to do with construction operations? I know a lot of contractors are getting into bidding season, and this got me thinking about communication. Rarely does a finished project exactly mirror the original plans. I know from my days as a general contractor that plans and specifications are altered continuously as subcontractors become involved, materials are changed, and change orders are issued. To further complicate matters, a construction project may have hundreds, perhaps thousands, of people working on it at any given time, making document version control a constant struggle. Although email and mobile technologies have made communication easier, they haven’t solved all of our problems.

Hurry Up & Wait

Communication is an important element throughout any construction project, but given the time of year, I thought I’d focus on the communication difficulties faced during the bidding process. If you’re a general contractor, you may send out an invitation to bid via email, fax, online notifications, etc. And then you wait. Many times, you don’t know which subcontractors have seen your project, which have downloaded or ordered prints of your plans and specs, or which ones will submit bids. If the plans change after invitations were sent, you have to notify everyone that a change has occurred. Now, you’re not only betting on how many contractors will bid, but you’re hoping they bid on the right set of plans. It can be a frustrating process where you spend most of the time in the dark. And, if you don’t receive all of the required bids you need, you have to start all over again.

Beyond Games

Given the sheer number of players in a construction project, there is inevitably going to be a miscommunication – you may even feel as though you’re back on the playground playing the telephone game. The challenge is to find a solution that will provide insight into all external communications, so you spend less time in the dark and tracking down answers and more time focusing on the project.

If you could improve one area of communication and collaboration on your construction projects, what would it be and how would you do it?

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It probably comes as no surprise that I’m a bit of a technology geek, after all, I do develop construction software for a living. I’m not the type of person who camped in front of the Apple store to get my iPad2, but I did get it the first week it was available. The recent passing of Steve Jobs got me thinking about how technology has evolved over the years, and how it has affected the way we operate.

Construction Connectivity – Can you hear me now?

Not too long ago, or so it seems, we were more than ecstatic at the idea of being able to call our project managers in the field on mobile phones. Some of us remember the “dark ages” of going back and forth between job sites and the office. At best, we could find a pay phone or some other land line to call on if it was an emergency. With the adoption of cell phones, we no longer had to physically go back and forth between the office and the field – we could make a phone call to connect the two. At the time, we still couldn’t see plans or email pictures back and forth, but the fact that we could call in a change or talk to someone in the office took hours off of the work week.

The Two-Way Data Street

We all know that, projects change constantly, which means your workers and your office need to be equipped with the most up-to-date information. A project manager friend of mine often forgot to give the payroll clerk his crew’s time cards, which often resulted in him having to go back to the office from a job site after receiving a call that the time cards were missing. He was thrilled the day he told the payroll clerk he would email the time cards, and they would be there in minutes. With the remote capabilities we have today, performing administrative tasks, placing orders for materials, or even approving changes can be completed nearly anywhere.

Voice, Data, Now What?

We’ve come a long way in terms of the technology available to the construction industry, and this technology has undoubtedly saved immense amounts of time. However, we still have some work to do. Processes are often duplicated because the necessary software isn’t always available. The project manager may not have a laptop on hand or the workstation may not have the software loaded. To fix this problem, more than just data needs to be readily available to project managers and anyone else who need access to it. Everyone needs access to a common set of applications they can share in order to make use of that information. Is this future technology on an iPad? I certainly wouldn’t mind if it was, but if I had to use my iPhone, that’d be okay, too.

What do you foresee as the next technology game changer for the construction industry?

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Over the past couple of weeks, I’ve been focused on the broad issue of construction collaboration. Not because there is any shortage of people talking about this topic – in fact, my motivation is that there are so many voices that collaboration is becoming a buzzword. In my opinion, collaboration is too important to our industry to lose its meaning in “marketing-speak.” So while I am another voice in the crowd, I hope that my thoughts on the subject stimulate discussion on how we can really achieve a collaborative work environment.

Rallying around standards

In my last two posts, I suggested that making project information universally accessible and providing controls over changing information were two of the big challenges we face in moving toward a collaborative work environment. Let me conclude with what I consider to be the last piece of the puzzle: standards.

As a Project Manager friend of mine likes to (somewhat cynically) say “The good thing about standards is we have so many of them!” Which of course means we don’t really have any. I understand his frustration, but I disagree. There are standards, existing and evolving, which have the potential to really drive collaboration. BIM protocols have been available and evolving for a number of years, and Integrated Project Delivery (IPD) standards provide an excellent organizational flag around which PMs and CMs can rally. The challenge lies in moving these and other standards into the workflows of construction companies.

Common platforms, common sense

As with anything new, there is always an adoption period. If the new technology or process makes sense – if it makes us more efficient and/or saves us money – then it will move through the industry until it becomes a standard. That begs a question I’ve been hearing a lot: why haven’t protocols and processes such as BIM and IPD gained more ground with contractors? The best answer I’ve heard: there is no common platform that delivers them to the folks collaborating on real projects.

“Platform” is another one of those words that can have a fuzzy meaning – so let me clarify. What operations folks are telling me and what they are asking for is a common workplace and common set of applications that project participants can use together – i.e., collaboratively – on a project-by-project basis.

This makes perfect sense. Develop an accessible online location that offers control over the flow of information and that offers common tools for project participants to use. OK, I have my marching orders – stay tuned!