6 Benefits of Tool and Equipment Tracking in Construction

In the fast-paced world of construction, efficiency and productivity are paramount to the success of any project. One crucial aspect that significantly impacts these factors is tool and equipment tracking. By implementing construction accounting systems that can effectively allocate resources, construction companies can enable full visibility into how their equipment and tools are impacting their job profitability—ultimately unlocking a myriad of benefits that streamline operations and boost growth.

Below are six benefits of tool and equipment tracking in construction, giving businesses the knowledge to implement robust systems and drive success.

1. Improved Asset Visibility

Tool and equipment tracking systems provide real-time visibility into the whereabouts and status of your assets. This enhanced visibility helps businesses keep track of their valuable resources, prevent loss or theft and ensure equipment is in the right place when needed. With the ability to monitor equipment remotely, businesses can minimize downtime, optimize resource allocation and improve operational efficiency.

2. Optimal Resource Allocation

Knowing the precise location and availability of construction equipment allows project managers to allocate resources effectively. They can make informed decisions about which equipment to deploy, when and where, based on the job's needs. This optimized resource allocation minimizes downtime, avoids over- or under-utilization of assets and keeps projects on schedule and within budget.

3. Efficiently Track Rental Performance

With the right construction accounting software, contractors can easily turn their fleet of equipment/tools into an internal profit center and accurately charge jobs for the use of the tools and equipment. They can set internal “rental” rates for a variety of time periods, and automatically calculate and charge the job for any lost items. They can also exchange tools and equipment without interrupting job cost allocation.

4. Streamlined Equipment Maintenance

Regular maintenance is essential to ensure construction equipment operates at peak performance levels and has a longer lifespan. Equipment tracking systems can provide maintenance alerts based on usage and time, reminding managers when equipment needs servicing or repairs. Proactive maintenance reduces costly breakdowns and enhances overall equipment reliability, leading to increased productivity on construction sites.

5. Increased Compliance and Safety

Equipment tracking contributes significantly to regulatory compliance and site safety. By having a clear record of equipment usage and maintenance, construction companies can ensure compliance with safety standards and regulations. Furthermore, tracking the movement of heavy machinery can help prevent accidents, ensuring that only qualified personnel operate specialized equipment.

6. Increased Accountability and Productivity

When employees know that tools and equipment are being tracked, they are more likely to be accountable for their care and proper use. Tool and equipment tracking fosters a sense of responsibility among the workforce, leading to improved tool and equipment handling practices and increased productivity. It also helps identify and address issues related to equipment misuse, which can otherwise go unnoticed.

In the highly competitive construction industry, tool and equipment tracking has become an indispensable component of successful project execution. By leveraging technology to streamline operations, improve decision-making and reduce costs, construction firms can enhance efficiency and profitability while ensuring that each project is completed on time and within budget.

How Contractors Can Improve Tool and Equipment Tracking

Tool and equipment tracking is typically accomplished using construction equipment management software or a leading construction solution like Deltek ComputerEase that can be accessed by multiple users, allowing for real-time updates of equipment movement. By leveraging technology, contractors can significantly enhance tool and equipment tracking, leading to improved productivity, reduced downtime and better overall project management.