Last week’s collapse of one of Australia’s largest construction companies, Probuild, sets the scene for an unsteady climate for other construction companies who have been hit equally hard with the pandemic and rising costs.
Specific reasons for the liquidity included project delivery capability which has been negatively affected by unplanned Covid-19 restrictions, the contractual environment and the increased difficulty in raising guarantee facilities necessary to secure new work, according to a news article.
McKinsey’s report last year on construction productivity “The Next Normal In Construction” sheds light on an industry in dire need of a shake up. Construction project management is ready for a shake up. The results speak for themselves:
- 70% of project managers in the construction industry reported a 70% scope creep
- 40% reported that their timelines exceeded the expected schedule.
It’s true, the construction industry has underperformed historically.
However, a changing market environment, technological progress and disruptive new entrants will trigger an industry overhaul, the report finds.
According to the Project Management Institute, this change is ripe for an opportunity to raise the standard on project management knowledge in the construction industry to ensure leaders are equipped for the change ahead.
The knoweldge alone is not enough however to bring about improved construction operations for better performance. Technological progress plays a massive role here. Enter digital technology.
Warning! This doesn’t mean construction businesses need to buy big. What’s needed most is a flexible, agile solution that can advance fast or else construction companies will have another problem on their hands (think legacy ERPs).
At EV20 Consulting Group, we can build solutions very quickly because our unique multi-value database solution makes our solution agile and responsive, while our competitors remain rigid and stuck in the past.
Our combined 300 years of software experience demonstrates our expertise and our client base including some of Australia’s major brands are testament to our service and solutions.
Drive Lynx is a project management software as a service that covers the entire project lifecycle in every package for the management of multiple construction projects: planning; resource allocation; contractor management; skillsets; tasks; schedules; site attendance management, quotes; and dashboards – combined with a service desk.
McKinsey concludes that almost half on incumbent value add is at stake. All players must prepare now for a fundamentally different next normal.
What are you doing to prepare for the change?
You’re invited to attend our Driving Construction Foward in 2022 webinar series, brought to you by Drive Lynx. Five incredible keynotes will share their expertise and help your business grow. Download the flyer here.
Contact us today to find out how you can put yourself ahead of the game with digital technology and Drive Lynx.