Why Digital Construction Technology is Revolutionizing the Industry
Digital construction technology has evolved in recent years, yet construction companies are slow to implement the advances.
Car phones. Palm Pilots. VHS Tapes. These old tech devices were all the rage in 1990.
But now, 30 years later, a cell phone can do everything that all 3 of those devices could and even more.
The construction industry is projected to include investments of upwards of $13 trillion within the next 10 years [McKinsey & Company]. It only makes sense for such a massive industry to implement digital technology to increase productivity.
Advancements in Digital Construction Technology
The construction process used to include hours of error-prone spreadsheets, delayed payments for contractors and subs, and inefficiencies at every turn.
Modern construction technology is changing that. For seemingly every problem in construction, there’s a digital solution. Here are some of the most common construction problems and solutions:
Problem: Less than 30% of general contractors report finishing projects on-time and on-budget [Construction Dive].
Solution: This type of construction technology exists in the form of software and mobile apps to help with scheduling and project management. Using technology to track construction expenses means real-time accountability. Translation: projects completed on-time and on-budget.
Problem: Construction loan managers are swamped with paperwork and are struggling to maintain manual spreadsheets for each project. Errors often aren’t caught on time, leaving lenders and contractors frustrated with delays in the draw process.
Solution: Construction payment software automates loan tracking and allows loan managers to handle exponentially more projects at once. Errors are nonexistent. Contractors and lenders are happy because draws get paid on schedule.
Problem: Delayed payments are the norm. Contactors and subs regularly have to wait 75-85 days to be paid for completed work [For Construction Pros] and spend ridiculous amounts of time filing liens to seek payment. Workers in any other industry would balk at the idea of waiting that long for payment, so why is it so common in construction?
Solution: Streamlined payment and draws processed through construction payment software can cut payment time to subs by 10 days [CoFi]. When construction companies and lenders seek out and use modern construction technology to improve their business, the results speak for themselves. It looks something like this: real-time tracking of expenses, on-time payments, continuous communication between lender and contractor, and no liens to be heard of.
As in any industry, there are still construction companies that ignore digital and technological advances. Sometimes it can feel easier to keep doing things the way they’ve always been done. But those who have taken the plunge and implemented digital construction technology are dominating the industry. Change is hard. But this is the way of the future. Don’t let yourself be left behind.
CoFi is Leading the Industry in Digital Construction Technology
The world of construction is adapting and changing. CoFi is driving the change. Welcome to the world of automated draw processes and on-time payments with less paperwork and less time invested.
Implementing digital construction technology will set your business above the rest. Schedule a personalized demo of CoFi’s payment software today!