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White Paper

Making the case with this free ROI Calculator

Use this ROI Calculator to show the financial benefit of your defect management system proposal.

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Many construction companies need financial justification for capital expenditures or when implementing new technology.  Your research is over and trials are complete.  You’ve found the right defect management system for your construction business.  Now all that remains is getting the funding approved.  Management want you to prepare a business case to justify the expenditure.  But you’re a construction professional not an accountant!  Where do you start?

It’s good practice to include the Return on Investment (ROI) in your business case.  The ROI is a profitability ratio.  The ROI measures the money made or saved on the investment as a percentage of the original cost.

Use our ROI Calculator for your defect management system business case

Our ROI Calculator is a simple to use Excel spreadsheet for non-accountants.  Accompanied by an easy to follow User Guide your ROI will be available in next to no time.  The User Guide explains:

  • the information and assumptions to enter into the ROI Calculator needs, and
  • where to source the information and guidelines for making assumptions.

The ROI Calculator helps you quantify

  • the investment cost (e.g. license fees, hardware, training etc)
  • cost savings (i.e. from productivity improvements) under three scenarios,

for entry into clearly labelled cells in the ROI Calculator spreadsheet.

ROI Calculator in Excel spreadsheet and accompanying user guide

Other features include simple to print summary pages showing

  • inputs, assumptions and calculations, and
  • ROI results

for appending to your business case.

ROI calculator reports can be appended to your business case

Of greater importance, the User Guide includes a section on interpreting the results. This will help you answer those tough “Sure, but what does that mean?” questions from management.

The outcomes will surprise you and your manager. Especially on projects with costs exceeding $20M. This is due to

  • the high cost of defecting using traditional methods, and
  • the low cost of implementing a tablet-based defect management system.

ROI Calculator - Outcomes versus project value

So, no more excuses – time to crack on with your business case. The easiest place to start is with this free ROI Calculator and User Guide.

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Filed Under: White Paper

Best practice defect management reporting: download our white paper today

Best practice defect management reporting is vital for any construction business.  Improving quality control is a given.  But it also helps you make better management decisions on current and future projects.

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Managing quality on construction projects is critical to project and business success. You’re only as good as your last job. A single bad job can undermine your reputation – sometimes beyond repair. There are many adverse consequences of poor quality construction. Some are quantifiable in monetary terms. Yet most are intangible and very challenging to recover from.

best practice defect management reporting policies and procedures

The construction industry views quality control as a critical business function. Volumes of policy, procedure, forms and templates prove this.  Quality policies and procedure effect all aspects of the construction process. From design and procurement through to handover.  Their focus is on-site inspections performed in the latter stages of a project. Such quality processes give rise to punch lists.

best practice defect management reporting makes the most of the defect data collected in the field

Generating a punch list is a time consuming but critical quality process.  But look beyond how you generate punch lists.  Focus on the next critical feature of your defect management processes.  How to best report the data collected during quality inspections to project stakeholders. You can get efficiencies and encourage better and more effective cross stakeholder collaboration.  The solution starts with best practice defect management reporting.

Have you ever wondered if your defect reporting is up to scratch?  What you should measure, who needs to know what, and how to set up your reports?

best practice defect management reporting enhances collaboration and leads to better management decisions

We’ve created the ultimate guide based on years helping construction companies to improve their defect management reporting.

See examples and explanations of how to use best practice defect management reports, including:

  • Overdue Defects
  • Overall defect progress
  • Defect dashboards
  • Subcontractor evaluation
  • Defect cause

And much more…

We also cover questions like:

  • How I can I best use historic defect data to improve future projects?
  • Who needs to know what: subcontractors, management team, project team?
  • How should I detect defect trends and their cause?
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Filed Under: White Paper

Free Punch List Template: Download today and save time and money on your next construction project!

Have you considered using a free punch list template to produce Punch Lists when managing quality control in the close out stages of construction projects?

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if this looks familiar you need a defect management system The manual generation of Punch Lists often incorporates hand written notes transposed into excel spreadsheets which are sorted and emailed to responsible sub-contractors with clumsily attached and poorly referenced photos. This manual re-handle of defect information gives rise to a surprisingly high and often little known cost, borne mostly by the main contractor.

Research led by Professor Marton Marosszeky at the Australian Centre for Construction Innovation (University of NSW) identified the following in respect of the impact of defects:

  • On average, the total cost of defect rectification ranges between 4% and 6% of construction expenditure.
  • The rectification process is highly management intensive due to the requirement for checking, recording, coordinating, reporting and signing-off reworked activities.
  • The indirect management costs are as much as direct rectification costs.
  • The administrative cost is substantially borne by head-contractors while the subcontractors bear the direct cost of rework.

In summary, the average cost of defect rectification using traditional methods is 5% with half of this (2.5%) borne by the main contractor in administrative burden.

ACCEDE

Consider a $20M construction project; total cost of defect rectification is (on average) $1M with the main contractor’s cost being (on average) $0.5M. This is a significant cost but one that is rarely costed into the closing stages of a project leading to project handover and completion.

Adopting new quality processes is challenging for most construction companies, as usually the change requires embracing new technology and possible unforeseen expenses. Whilst most main contractors claim to encourage innovation, many managers are cautious when it comes to approving expenditures on new construction quality systems, especially when it involves technology they may not be familiar or comfortable with.

Tablet-based defect management systems are widely available but many main contractors are reluctant to implement this time saving technology and persist with manual punch listing processes regardless of the demonstrated productivity benefits and associated cost savings.

We have often speculated the reasons for this and have concluded they most likely are:

  • Cost of the new technology/system
  • The time/hassle associated with managing change
  • Lack of familiarity with the new technology.

This got us thinking of what we could do to overcome these legitimate obstacles.

In our first white paper, we provide you with a free Punch List Template, complete with easy to follow instructions, that will speed up the process of transposing your hand-written notes into a usable Excel Punch List.  Given the popularity of and familiarity with Excel, especially in existing manual defect management processes, we considered this the best way forward to give main contractors a taste of the new technology with no cost or risk.

free punch list template incorporating Excel userforms

Our solution incorporates Excel-based data entry userforms that:

  • contain the key defect item elements you should be capturing
  • have a similar look and feel of the ACCEDE Agent (iPad app)
  • improve data entry productivity
  • generate a simple punch list
  • capture data in appropriate formats for direct upload to the ACCEDE Defect Management System should you wish to progress to a free trial
  • require minimal change to existing manual punch listing processes.

Unfortunately, our free Punch List Template focuses more on generating rather than managing Punch Lists so the productivity gains from its use are not as great as those you will get from using a tablet-based defect management system. The good news though is it’s free, simple to use and will save time should you wish to proceed with a free trial of ACCEDE.

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Filed Under: Featured Posts, White Paper

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Defect differently with ACCEDE

Construction Defect Masterclass: How to Stay One Step Ahead on Cost, Quality and Claims

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