Technology

Digitizing T&M Tracking on Construction Projects

How can construction companies make the best use of consolidated and connected software solutions while protecting frontline personnel from the added burden of reporting? By focusing on solutions that support connected workflows directly from the field.
By Guy Skillett
July 24, 2018
Topics
Technology

The recently announced acquisitions of Viewpoint and e-Builder by Trimble, and of Aconex by Oracle, point to a consolidation of project management functionalities and workflows within software solutions, which will drive versatility and the ability to better manage changes in the field.

This consolidation is being empowered by a greater awareness and adoption of API-enabled integrations, data standards and integrated workflows—all driving at a tighter approach for data management to identify, track and resolve problems on projects.

While these innovations are a step in the right direction, progress around field data capture is lagging. The landscape for apps has changed dramatically in recent years, with many field personnel reportedly reaching peak deployment and experiencing app fatigue.

There’s a paradox here: The industry is simultaneously witnessing increasing capabilities for managing data in software systems and a decreasing ability to deploy new data-gathering tools.

How can construction companies make the best use of consolidated and connected software solutions while protecting frontline personnel from the added burden of reporting? By focusing on solutions that support connected workflows directly from the field.

The time and materials process for potential change order work is particularly ripe for automation.

T&M tickets document expenditure of resources on scope that is not part of the base contract to be incorporated in future change orders. This process is almost ubiquitously documented on paper T&M tickets, a practice that is defined by delay, inefficiency and waste, often resulting in subcontractors not being fairly compensated for work executed.

Here’s how the T&M process currently works.

  • Tickets must be handwritten in the field to document the work.
  • Explanations of what took place, why it was needed, who instructed it, and what resources were involved are included.
  • The ticket must get reviewed and verified in the field.
  • It is then transmitted from the jobsite to the offices of both the subcontractor and general contractor.
  • Confirmation is obtained that the work was not, in fact, part of the base scope.
  • Tickets must be priced, with all the necessary backup documentation provided.
  • The data must be digitized, entered into logs, systems, workflows, platforms, spreadsheets and all manner of “tools” for documenting the work.
  • Eventually, the scope is captured in a change order that a subcontractor can include in a payment application and be compensated for.

The process involves numerous data handoffs, approvals, transformations and endpoints, all of which are workflow elements that can be improved with well- designed and connected software solutions. However, it will be impossible to leverage the benefits of a connected, end-to-end workflow if T&M is continually documented on paper tickets.

Here are the benefits of digitizing T&M.

  • Automating T&M digitizes the data at the source and makes it immediately available to connected software solutions and workflows. There’s no need to wait for T&M tickets to be delivered from the field and digitized in excel spreadsheets and project management software.
  • An intuitive T&M solution is quicker than documenting events on paper, freeing up time for more value-added tasks. A solution that allows the digitization of backup documents, such as invoices and site photos, eliminates the time needed to aggregate documentation in the office, further driving value.
  • The risk of the data being lost or delayed is reduced, improving reliability and the likelihood of timely processing and payment.
  • Data that is digitized at the source drives transparency among the contracting parties and greater awareness of project cost and contingency impacts. In turn, this creates optimal conditions for change order negotiation, and ultimately timely and equitable compensation.

While these characteristics are not unique to T&M, this process is very closely associated with timely payment and compensation for work performed. It is also a significant area of risk for contractors, and therefore directly correlated to cash flow, margins and the construction company’s financial health. The best, most connected software system and workflows are only as reliable and dependable as their data sources, which in the case of T&M are defined by opportunities for data loss and high latency.

The T&M process remains doggedly and persistently paper-based, but timekeeping and productivity reporting solutions are emerging for digitizing this workflow—ensuring craftworkers get paid quickly and reliably.

In an age of digitized workflows, solutions that drive at better revenue recovery on jobsites and improvements to the bottom line should be an increasing area of focus for any construction company.

by Guy Skillett

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