Managing a construction firm can be complex, as it is cumbersome to keep track of tools, equipment and materials for each job site, and therefore, expenses can get out of control.
Contractors often struggle to determine how much profit they are making on each job, and it is easy to lose money if you are not tracking costs in real-time. By instantly recording expenses, such as tools, equipment and materials, contractors can effectively manage inventory and therefore, have more time to spend working on managing and growing their business.
What is Equipment Tracking and Inventory Management?
Equipment tracking and inventory management in construction is the process of tracking and managing all construction materials, tools and equipment throughout the life of a construction project. This includes everything from the initial purchase and storage of materials to tracking the movement of tools and materials during the job, to the final disposal or return of materials after the job is completed.
Why Contractors Need to Better Track Equipment and Manage Inventory
The purpose of equipment tracking and inventory management is to ensure that all construction materials, tools, and equipment are available when and where they are needed, and that any excess materials are accounted for. This helps to prevent over-ordering and under-ordering of materials as well as reducing waste and controlling costs.
Benefits of Improving Inventory Management in Construction
Improving inventory management in construction is essential for optimizing job costs, improving resource efficiency, and minimizing waste. By keeping accurate records of materials, tools, and equipment, contractors can ensure that they have the necessary supplies on-hand for any job.
This can save money by preventing over-ordering, under-ordering, and having to rush orders at the last minute. Additionally, proper inventory management can reduce labor costs by helping to avoid overstaffing and understaffing jobs.
Finally, improved inventory management can lead to better resource utilization, as contractors can ensure that the right materials are being used in the right places and that they are not wasting materials by leaving them unused.
In summary, improving inventory management in construction is a cost-effective way to increase efficiency and minimize waste.
Benefits of Improving Equipment Tracking in Construction
Tracking equipment in construction can help to reduce labor costs, increase safety on the job site, and improve project coordination.
By tracking equipment, it is easier to identify when and where equipment is needed, and to coordinate tasks between different teams on the job site. This can help to improve communication and reduce the amount of time wasted on unnecessary tasks.
Tracking equipment can help to reduce the number of accidents on the job site, as it allows for the accurate and timely detection of potential safety hazards.
Contractors can also improve the accuracy of billing and invoicing for construction jobs, as reports can be generated to provide an accurate record of what equipment was used and how long it was used.
How to Save Money on Construction Equipment
Renting equipment in construction can be a great way to save money. It can ensure that you are only paying for the equipment you need and when you need it. This practice eliminates the need for long-term investments in large pieces of equipment that may not be used frequently.
Equipment rentals eliminate the need for storage space and the cost of maintenance, repairs and insurance; plus it can provide access to newer and more advanced equipment that may not be available to purchase. This access can be especially useful when completing a specialized task or job.
How Contractors Can Use Equipment to Earn Money
With the right resources and knowledge, you can make a substantial profit from renting out your construction equipment.
When your equipment is not being used, you can rent your equipment so that you can make money while your equipment is sitting idle. This means you can earn money on your own jobs and other contractors’ jobs by renting out your equipment and tools.
You can track rental performance and their actual costs with flexible billing options as well as earn money on your equipment by charging competitive prices. To get started, you'll need to identify the equipment you own and decide which pieces you're willing to rent out. You'll also need to decide how much you'll charge for each piece of equipment. After that, you'll need to advertise your equipment, which can be done online or through traditional media outlets.
Screen shot of Deltek ComputerEase Rental Equipment Status Report
You’ll set prices for individual pieces of equipment and use historical data to create flat-rate pricing and lump sum pricing for faster invoicing. Faster invoicing means better cash flow.
Accurately billing rates will help you profit on idle equipment, but it’s also recommended you include delivery, pick-up fees and labor costs right in your invoices.
Screen shot of Deltek ComputerEase Equipment Center
Using the right construction-specific technology, you can establish a pricing matrix for groups of similar items, and you can:
- Set rental rates for a variety of time periods
- Override pre-set pricing
- Create invoices on rentals converted to sales
- Credit your job cost when an item is returned from a job and put back into inventory
- Automatically calculate the cost of any lost items
- Swap your equipment to and from jobs without affecting billing
In addition to tracking and managing inventory, this system also helps to ensure that all equipment is properly maintained and complies with safety regulations. This includes tracking maintenance schedules and performing regular inspections.
Once you have some customers, you'll need to ensure that your equipment is well-maintained and that you have a contract in place with each customer.
Providing quality customer service is of the utmost importance and using a construction-specific CRM such as Deltek ComputerEase can help improve your organization so that you can be available to answer any questions your customers have. With the right approach, renting out your construction equipment can be a great way to make money.
How Contractors Can Improve Equipment Tracking and Inventory Management
Equipment tracking and inventory management is typically accomplished through the use of software or an online platform that can be accessed by multiple users, allowing for real-time updates of inventory levels and equipment movement. This system typically includes features such as barcode scanning, data analysis, and reporting.
Construction equipment management software is an invaluable tool for any construction company. It helps you track and manage equipment, inventory, and materials, making it easier to ensure that your construction project is running smoothly and efficiently. It also allows you to monitor and manage your budget, as well as your labor costs, so that you can stay on track with your financial goals. With the right construction software, you can easily track your equipment, materials and inventory, allowing you to see what is available and what needs to be purchased or ordered. You can also easily monitor the status of your project, ensuring that all tasks are completed in a timely manner. In addition, you can track employee hours, ensuring that your labor costs are kept in check. Construction software also allows you to store and manage all of your project documents in one place, so that you can access them quickly and easily.
How Deltek ComputerEase Helps You Track Equipment and Manage Inventory
The right construction-specific software, such as Deltek ComputerEase, can help you have better project outcomes and include additional benefits such as:
- Gaining the visibility you need into job status, allowing for better planning and scheduling of activities to reduce delays and increase efficiency
- Managing equipment, inventory, and material quantities using data to make informed decisions with one system for inventory management, barcode scanning, and accounting, and including excess supplies that are returned from completed jobs
- Accessing reports and information in real-time so that you will know where you stand on every job – from anywhere, at any time
Deltek ComputerEase is the leading construction software provider of accounting, job costing, project management, payroll services, cloud hosting and more. We help contractors stay in control from any location with mobile tools to proactively manage jobs, inventory, finances and people. Our dedicated team is committed to providing service excellence and product innovation, adapting to the evolving construction compliance requirements, beating the competition, increasing profits and even earning money back. ComputerEase is an easy-to-use affordable tool to help you take control of your assets and equipment. Interested in learning more? Talk to our construction experts today.
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