With research by Oxford Economics for the Construction Plant-hire Association (CPA) revealing productivity in the UK’s construction sector is now lower than in 1997, the importance of optimising efficiency and minimising wasted time cannot be understated. Given manual administrative tasks are often quite time consuming and one of the leading causes of reduced productivity, technology that streamlines processes and saves vital time offers a crucial solution.
Payapps underlines the importance of reducing wasted administrative time to expedite projects and reveals how automated software can streamline processes like managing subcontractor applications for payment, allowing commercial and finance professionals to track and monitor payments, control budgets and cash flow, and save vital time and expenditure.
The CPA’s report suggests a concerning future for the construction industry, warning ‘Britain’s £530 billion construction and infrastructure pipeline is starting to crack, with skills shortages, falling investment and delivery delays threatening to derail government growth plans.’
In fact, research undertaken by the CPA revealed 44% of firms are reporting labour shortages are restricting activity. Furthermore, while the UK needs 250,000 additional construction workers, even this may not be enough given half a million of skilled professionals are due to retire in the next 15 years.
While this highlights the growing need to tackle the ongoing skills shortages being seen across the construction industry, it also underscores the vital importance of ensuring those in the built environment are able to use their precious time productively.
Reduced productivity and the link to project delays
Construction professionals often spend up to 35% of their work hours on non-productive administrative tasks, such as searching for information and resolving conflicts, meaning an already strained workforce can then face the additional challenge of cost overruns and project delays.
Not only can these delays lead to immediate hold-ups during the working day, but the ripple effect can impede a project further down the line, not to mention the financial burdens of delayed payments.
The increased risk of remedial work
The construction industry is already under increasing pressure to meet ever-tightening project deadlines, and administrative delays can often prompt rushed construction work just to keep on schedule.
As a result, the quality of work can suffer – increasing the risk of defects and the need for costly rework further down the line. In fact, a study by the Construction Industry Institute found administrative errors led to around 9% of all industrial rework expenses.
The need to avoid costly disputes and adjudication
The construction of any building or development will often involve a number of different stakeholders, such as contractors, subcontractors and clients. Without an efficient and streamlined administrative system, critical information can often be mislaid.
Consequently, this can lead to misunderstandings, delayed or incorrect payments and other contractual disputes, which in turn can lead to costly and time-consuming adjudication.
Manual administration can be a hugely time-consuming process
A survey carried out by Payapps indicated manual administration is one of the construction industry’s biggest pain points. Indeed, respondents revealed they could allocate more time to contract and variation management, personal relationships and training and business development if they were able to reduce the hours spent on manual administration.
The data highlighted the positive impact technology can have on reducing wasted time. In fact, users of digital tools, such as Payapps, are more likely to spend between zero and five hours on administrative tasks per week, compared to non-software users, who typically spend six or more hours each work on manual administration.
Technology has a vital role to play
Switching from the manual inputting of critical data and information to more modern practices that use innovations in technology, such as Payapps, offers an ideal solution to the issue of wasted administrative time.
Designed to streamline processes, especially when it comes to the application for payment journey, this software can not only cut out inaccuracies but also reduce the risk of disputes and adjudication while providing all parties involved in a project with all the information they need, whenever they need it.
There is still hesitancy when it comes to adoption
While more across the built environment are realising the true potential of technology to streamline construction administration processes, there is unfortunately still widespread hesitancy when it comes to adoption of digital tools and software.
With technology playing such a pivotal role in reducing inaccuracies, expediting the application for payment process and ultimately reducing wasted administrative time and project delays, increasing awareness around the importance of technology is imperative.
It is down to those across the construction industry to work together to illustrate the significant time and cost benefits of leveraging technology and encourage more contractors and subcontractors to transition away from paper-based and manual systems to cohesive software that automates processes for faster, more accurate applications for payment.
Doing so is often much easier than some assume, with many technologies and pieces of software able to very quickly integrate with existing systems. Additionally, involving employees early in the decision-making process encourages buy-in and gradually implementing systems helps prevent disruption and enhance efficiency.
By increasing technology adoption and promoting a more digitally driven industry, we can all help to create a more financially secure, transparent and productive built environment.
