This Podcast Is Episode Number 473, And It's About How Technology Helps Construction Businesses Save Money The use of technology in construction has come a long way. Many articles have already been written about how construction has been sluggish in adopting new advancements in technology compared to other business sectors. However, more and more companies, especially small construction businesses, have been open to using technology to improve their operations.    Any change is difficult–especially in business. Changing how things have always been done in the past involves a lot of effort, persistence, and flexibility, not to mention financial investment. To sustain the interest and efforts towards these changes, it's crucial to fully understand and not lose sight of the benefits of adopting technology. For businesses, increasing the bottom line and reducing costs are always practical reasons to leap.    Here are the ways technology helps construction businesses reduce costs: Pre-construction Process From bidding up to gathering the materials and workforce required for a project, there are many inefficiencies that technology can solve. Relying on paper or even disparate systems can cost different stakeholders a lot of time and money in the pre-construction phase.  Careful planning helps contractors prepare for a project where delays are minimized; budgets are accurately forecasted and adhered to, and, ideally, different apparent and hidden risks are identified and mitigated. This applies to various participants in a project. Planning is equally vital if you are a subcontractor or supplier to a big project.  End-to-end project management software tailored to construction projects solves many of these issues. It also serves as a single source of truth for different participants in the project. Traditionally, most documents like plans and blueprints are in the form of hard copies, making it difficult to communicate changes and practice dynamic version control. The time spent passing on and confirming new information is necessary when dealing with paper references. These are eliminated when plans and documents are digitized. Not only is time saved, but errors and miscommunication are greatly minimized. The transparency and efficiency resulting from embracing technology in the pre-construction phase pay off beyond the savings when plans are created. The increased efficiency and transparency also foster timely progress and early discovery of issues when the project is in full swing.  Business Operations For smaller contractors and construction businesses, ensuring that back-office operations are as error-free and optimized as possible is crucial, especially with the razor-thin margins in the industry. While those on the job site are hard at work ensuring that services, labor, and materials are delivered up to the client's expectations, those who work inside offices to support projects, especially on the finance side, benefit significantly from technology in optimizing work–ensuring that precious hours are used in high-value activities instead of being consumed by repetitive and easily-automated tasks.  Accounts receivables, accounts payable, payroll, and general accounting functions are among those where embracing technology makes an immediate impact. Many of those in construction accounting already use spreadsheets to manage accounts and finance.  has complexities that require different approaches where using disjointed spreadsheets can fall short. Additionally, relying on spreadsheets and manual file management opens up businesses to risky errors that lead to poor records, inaccurate data, and poor decision-making. Another area where technology can save construction businesses from losing profits and time complies with legal requirements. For payments, a fundamental but often unwieldy portion of credit management is ensuring that all projects worked on are protected by lien...