Blog - Top 6 Challenges for Construction Resource Management

Construction Resource Management: How to Manage Construction Resources

Construction resource management represents an advantage for businesses in the construction industry, pushing past the misconception that managing resources— individuals, materials, and processes—is a spontaneous effort. In reality, the most innovative ways to use construction resources usually stand out because of the integration of sophisticated tools and processes. These practices enable construction business owners to manage their resources better, anticipating and addressing issues before they happen. This proactive approach to resource management is highlighted by a report from McKinsey & Company, which touches on the importance of digitalization and adopting resource management tools in construction projects as significant opportunities for the industry. 

What is Construction Resource Management?

Construction Resource Management is a strategic approach focused on optimizing labor, materials, equipment, and time in the construction industry. This process involves planning, allocating, and managing the resources required for completing a construction project. While this was done manually before, visionaries in the industry employ various tools and technologies as a way to improve profitability and meet deadlines.

Why is Construction Resource Management Important?

Resource management encompasses workforce scheduling, material accountability, equipment usage, and cost control. Businesses can minimize waste, reduce costs, and improve project performance, profitability, and efficiency. 

Businesses implementing technology and operations aligned with resource management best practices can improve project efficiency, cost-effectiveness, and quality. In the construction industry, knowing how your resources are being used is vital to prevent delays, reduce overheads, avoid resource issues that can stall projects, inflate costs, and blind businesses from any legal disputes.

Among the many reasons why resource management matters, here are the few benefits that emerge from having a resource management system in place:

Enhanced Visibility: Resource management offers an overview of all projects, enabling precise resource allocation based on skills, availability, and project requirements.

Increased Accountability: It provides instant access to employees’ activities and equipment usage, making tracking resources easier and improving team accountability.

Strategic Growth Support: Resource management helps identify labor needs for strategic scheduling, allowing for better decisions on subcontracting or hiring to support business growth.

Effective Cost Management: Enables examining labor and equipment utilization, allowing business owners to reduce unnecessary overtime, bloated crews, and unneeded equipment rental fees.

Types of Resources in Construction Management

The construction industry requires business owners to balance understanding people, using materials well, and streamlining processes. This is why having clarity on the different types of resources you can measure and improve can help you identify opportunities to enhance your business practices and maximize profits. 

Here are a few of the areas you can optimize by using a construction management software:

  • Human Resources: Finding the right skilled labor, top engineers, architects, and diligent project managers who can help you plan and execute your projects. 
  • Material Resources: Keep track of all materials such as concrete, steel, wood, and bricks. This allows construction business owners to minimize waste and maximize profits. 
  • Equipment Resources: If you must use heavy machinery and tools like cranes, bulldozers, and drills, you can have a more organized tracking system for how they are used and for what purpose.
  • Financial Resources: Keep track of labor costs, material purchases, equipment rentals, and any other unforeseen scenarios that may arise and potentially delay the project and affect your profits.
  • Time Resources: Delivering projects on time is one of the main challenges in the construction industry. Modernizing your business with management software allows you to project timelines that can be met and plan/account for unexpected circumstances.
  • Information Resources: Multiple documents are required for any construction project. Having management software helps you keep everything in one place, whether construction plans, specifications, or regulatory requirements; having it all in one place enables you to improve your business and make better decisions.

Essential Tips For Better Construction Resource Management

Business owners who excel in efficiently managing resources have a more positive delivery track record, keep projects within budget, and ultimately grow their business due to efficiency and excellence. While the list of improvements in construction resources is endless, here are six strategies you should consider in your enhanced management journey.

Use Technology for Better Oversight

Adopting construction management software that meets your business’s requirements can completely change how resources are scheduled, tracked, and allocated. One of the main advantages of these tools is that they offer real-time insights that help managers make better decisions quickly.

Commit to Continuous Learning: 

The construction industry moves fast, meaning that investing in regular training and development programs makes a difference. Being ahead of the curve ensures that your team understands and meets industry standards, techniques, and technologies, helping you meet more and more demanding project requirements and deadlines.

Become Better at Forecasting

Accurate forecasts for labor and materials help you avoid overstocking and shortage issues. By using historical data and thoroughly analyzing your data and performance, managers can anticipate project needs, improve efficiency, and prevent problems before they even happen.

Cultivate a Culture of Communication: 

Clear communication channels among stakeholders ensure everyone is informed about project goals, deadlines, and updates, improving operations and efficiency. Open communication and frequent updates on the work being done, issues, and potential delays are vital between field and office interactions.

Be Proactive About and Evaluate Resources Frequently

Understanding how resources are used allows project managers to adjust the project and meet standards timely. Proactive accountability helps optimize processes or find areas where resources may be insufficient. The better you understand your resources, the better actions you can implement to improve efficiency.

Embrace Sustainability in Resource Use: 

Sustainable practices promote efficiency and reduce waste. This approach is not just about being environmentally friendly, but it can also lead to savings and better project outcomes. On top of that, it can become a differentiator for your business, building a reputation that aligns with the core qualities consumers value.

eSub is a Great Tool for Construction Resource Management

When it comes to better understanding your current projects, resource management, and how to improve efficiency, we’re the partner that has helped hundreds of commercial subcontractors meet their goals. 

eSUB Cloud is the only construction software specifically designed for subcontractors. It helps you manage your project documents and field communications more efficiently. Eliminate ineffective paperwork, reduce project delays, and build trust with your field teams and general contractors.

Some of the key advantages for construction management using eSUB Cloud are:

  • Automated Job Costing: Streamlining the process of tracking and allocating costs to specific jobs or projects.
  • Improved Financial Tracking: Providing real-time financial insights and reports, enhancing decision-making.
  • Access to Files: Facilitating access to essential documents like timecards and change orders for both office and field personnel.
  • Security and Auditing Features: Enhancing data security and providing audit trails to mitigate risks.
  • Efficiency: Speeding up accounting processes and improving accuracy in financial reporting.

Request a demo of eSUB Cloud and learn how we can help you build smarter, better, and faster.