The Real Cost of Working Across Multiple Systems

Fragmented workflows and systems are common in construction, but working this way has real costs for firms in the sector. Using multiple systems doesn’t just slow teams down, hidden time drains, increases risk, and weakens commercial alignment, ultimately eroding confidence in the numbers.

The hidden operational and commercial costs of these fragmented systems can undermine confidence and decision-making. Ultimately, they can be why a construction business fails and why it should invest in ERP systems.

The Illusion Of ‘Coping’ From Day To Day

Construction is a famously time-poor sector, but it’s also one where businesses find endlessly creative ways to get by and make sure the job is done. That is a credit to everyone involved in construction, but it can also lead to the damaging illusion that the current way of working is ‘good enough’ because it hasn’t led to disaster – yet.

However, that’s not the ideal way to operate. Every creative workaround comes with a cost, and problems pile up until they cause a disaster. Every quick fix is okay at the time, but overall, it points to workflows and systems that aren’t fit for purpose.

That illusion of coping hides real, long-term costs in construction.

Hidden Time Drains Are Everywhere

The most common way these costs manifest is through hidden time drains. Everyone comes up with solutions that work in the moment, but those solutions don’t cohere into an overall operational picture. You end up with endless data duplication, each of which takes more time to create in a new place, rather than everyone being able to access the same information when they need it.

Furthermore, if everyone creates their own sources of data there is no way to ensure that it’s all up to date. When two teams come together, manual reconciliation becomes essential. Are we all on the same page? Finding out all wastes time and results from everyone developing their own workarounds to solve day-to-day problems.

The end result is people chasing information between teams and wasting huge amounts of time that could be used on more valuable work. This is a real cost of using multiple systems in construction and legacy ERPs.

Error And Heightened Exposure To Risks

If everyone is working on different versions of the same documents and not using a construction document management system,​ it can have serious effects on construction. Tasks can be done wrong and require increased rework. In the worst cases, incorrect construction can mean the finished building does not correspond to the approved plans and can cause your business major problems at the Building Control sign-off.

Related to this is the risk of inconsistent data across reports. If you’re looking at incorrect information, you will make poor decisions that can have direct and hidden costs. If you get a material order wrong, you could overspend or not order enough, and work has to stop.

If you don’t have oversight of what your workers are doing on any particular day, you could have resources on site sitting idle and end up causing programme delays. It’s not one person’s fault, but it is a potential hidden cost of working with fragmented systems and workflows.

This is where the construction document management system​ steps in; it connects everyone and everything. So, all teams have up-to-date information that changes in real time, whether you need the latest financial report or the plant hire schedule.

Commercial Misalignment Can Have Severe Consequences

It’s not just a problem on site, either. QS, finance, and operations, each working from different datasets, will reach different financial conclusions, which can affect your cash flow, margin, construction programme, and more.

You are likely to receive delayed or conflicting reports, which are not suitable for commercial decisions. A lack of confidence in your reports becomes a compounding issue as work slows and accountability suffers. Once trust is lost in forecasts and CVRs, how can you make confident decisions and proceed with your project?

These are the hidden costs of relying on a series of systems that may be ‘good enough’ individually or from day to day, but are not designed or operated with the bigger picture in mind.

What ‘Good’ Looks Like

On the other hand, there is a simple, achievable way for construction companies of all sizes to operate in a way that eliminates those risks and makes your business more productive.

The first step is unifying data and workflows on one platform – a construction management system. Technological construction management systems keep everything organised and ensure everyone has access to the up-to-date documents and numbers they need.

Providing that shared visibility is key for accurate decision-making in construction. You will have no doubt that commercial and site decisions are being made based on correct information. This breeds accountability and ownership of tasks. Everyone can see what is happening and understand their place in the combined workflow. They know what needs to be done, when it should be done, and who to report to once the task is completed.

This enables consistent, reliable processes which are efficient and predictable. The hidden costs of working across multiple systems are eliminated, and your business will be better for it.

Want to learn how construction management technology can deliver this outcome for your business? Contact the team today to learn more and get a free demonstration.