Share this article:
In our latest guest blog, our corporate partner, Integrity Software discuss the key KPIs to drive success in your construction business.
To learn more, register for our joint webinar, taking place on Monday 7th October, at 2:00pm.
In today’s fast-paced construction industry, businesses need to be more data-driven than ever. Tracking key performance indicators (KPIs) not only helps construction companies assess their current standing but also enables them to make informed decisions that can lead to higher efficiency, better project management, and improved profitability. So, which KPIs should you be focusing on to ensure your business remains competitive?
1. Project Profitability
Project profitability is essential for determining whether a project is yielding a positive return. Tracking the margin between project costs and revenue gives a clear picture of financial health. Analysing this regularly can help pinpoint cost-saving opportunities and ensure that bids are accurately estimating expenses.
2. Cost Variance
This KPI measures the difference between estimated project costs and actual costs. It’s critical to monitor cost variance throughout the project’s lifecycle to identify any budget overruns early. This allows businesses to course-correct before small discrepancies grow into major financial concerns.
3. Labour Productivity
Labour productivity evaluates how efficiently workers are completing tasks compared to the project timeline. Monitoring productivity rates helps determine if staffing adjustments are necessary or if workers need additional training or resources to improve their efficiency.
4. Cash Flow
Healthy cash flow ensures that a business can meet its short-term obligations and invest in future growth. Tracking cash inflows and outflows ensures that your company has the liquidity to cover expenses, pay subcontractors, and invest in new opportunities.
5. Project Schedule Adherence
Delivering projects on time is a top priority for construction businesses. Monitoring schedule adherence – comparing the actual progress of a project against planned milestones – can highlight any delays early and prevent costly disruptions.
6. Safety Incidents
Safety is a cornerstone of a successful construction business. Tracking safety-related KPIs such as accident frequency rate or near-miss incidents helps ensure that your company maintains high safety standards, reducing the risk of costly legal issues and enhancing worker morale.
7. Client Satisfaction
At the end of the day, client satisfaction drives repeat business and referrals. Measuring client feedback, delivery on expectations, and overall satisfaction levels is essential to building long-term client relationships.
Streamlining KPI Tracking with Evolution Mx
Tracking these KPIs may seem like a daunting task, but the right tools can simplify the process. Integrity Software’s Evolution Mx is designed specifically for the construction industry, offering integrated reporting tools that make it easy to monitor these crucial KPIs in real time. With Evolution Mx, construction businesses can ensure they have the insights they need to boost profitability, improve efficiency, and stay on track with their goals.
To learn more about how Evolution Mx can transform the way you manage your construction projects, register for our upcoming webinar in partnership with CIF on Monday 7th October at 2pm: https://us02web.zoom.us/webinar/register/WN_E9AsR0iNRnKjSvXqpnV-uQ
By tracking the right KPIs, you can set your business up for long-term success – and the right software can help make that journey easier.
About Integrity Software:
Integrity Software has a long track record of providing solutions to the construction market spanning over 40 years. We have over 1,000 customers in the broader construction sector in Ireland and the UK with our award-winning construction-specific accounting and management software, Evolution Mx.
Providing quality software solutions that solve the problems our customers face, supported by outstanding customer service, Integrity takes the time to get to the heart of your business and understand your requirements.
Their team is made up of industry professionals with many years of experience in solving business and accounting problems for construction companies and advising on industry best practices. All development and support services are provided by teams in Ireland and the UK, giving customers peace of mind.
Website: https://www.integrity-software.net/
Sales: +353 (01) 9061444 (IRE)
Level 1, The Chase
Carmanhall Road
Sandyford
Dublin
D18 Y3X2
Ireland