Building Success – The Crucial Role Of Processes In The Construction Industry
- Brainz Magazine
- Nov 30, 2023
- 5 min read
Written by: David G Fisher, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
The construction industry is the backbone of modern infrastructure, shaping the world we live in. From towering skyscrapers to intricate bridges, the construction sector plays a pivotal role in defining the landscape of our cities. However, behind the scenes, the success of any construction project relies heavily on the implementation of robust processes.
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That's because construction companies must adhere to various regulatory standards and building codes in order to protect the public.
But what is a process or SOP?
Imagine trying to build a skyscraper without a blueprint – chaos, right? Standardized processes are the unsung heroes here, ensuring everyone's on the same page and no one's building the Eiffel Tower instead of a housing estate in downtown Sydney.
What exactly is a process or standard operating procedure?
For the purposes of keeping it simple, you just need to know that a SOP (also named a process) is a clearly documented, understood and agreed upon way of carrying out a task.
And we'd like to highlight the documented part. It needs to be documented!
Why the construction industry needs processes to thrive?
Does your business suffer from any of the following;
You constantly run late on delivery of projects
Your estimating process is inefficient
Getting bids standardized and concise is a consistent challenge
Even if you find the labour you need, it seems impossible to train them
You have a few systems for your operations but you’re just the only one who knows them.
The likelihood is not that you're running short on time but rather that you're running short on processes. The construction industry is highly dynamic but requires consistent, streamlined, and optimized processes in order to run efficiently.
A well-defined process minimizes delays, reduces downtime, and maximizes the efficient use of resources. Whether it's project planning, material procurement, or construction execution, adherence to established processes ensures that every task is carried out with precision and efficiency.
Cost control and budget management
Construction projects are notorious for their susceptibility to budget overruns. Effective processes provide a roadmap for budget management, helping construction companies to keep costs under control. By having a clear understanding of the costs associated with each phase of the project, stakeholders can make informed decisions, allocate resources judiciously, and prevent unnecessary expenses.
Risk mitigation
Weather, labor issues, and unforeseen challenges potentially impacting project timelines. Processes act as a safety net, helping to identify, assess, and mitigate risks. A proactive approach to risk management, integrated into the construction process, can safeguard against unforeseen events, ensuring that projects stay on track even in the face of adversity.
Quality Assurance
The quality of construction projects is a direct reflection of the processes in place and ultimately impacts the success of a company. Robust processes enforce strict quality standards at every stage of the project, from design to execution. This commitment to quality not only enhances the longevity and durability of the structures but also contributes to the reputation of the construction company. A focus on quality assurance is crucial for client satisfaction and future business opportunities.
Supplier relationships
Processes play a crucial role in enhancing the management of effective relationships with suppliers. Critical elements encompass assessments of supplier performance, fostering communication and collaboration with suppliers, promoting supplier diversity initiatives, and monitoring the percentage of supplier-related issues or disputes. The implementation of SOPs is instrumental in cutlivating robust partnerships with suppliers, thereby guaranteeing the seamless execution of projects.
Regulatory compliance
The construction industry is subject to a myriad of regulations and standards. Adhering to these requirements is non-negotiable, and well-defined processes ensure that all necessary permits, inspections, and approvals are obtained in a timely manner. Failure to comply with regulations can result in delays, fines, and damage to the reputation of the construction company.
Additionally, construction projects are fraught with risks and liabilities that can often result in litigation. When there is a dispute, opposing parties will look to see if the professional acted within the accepted “standard of care" and according to regulatory standards.
Team onboarding, training and collaboration
Imagine if you didn't have to take a day or more out of your schedule each time a new labourer joined? Effective onboarding and training is vital in construction projects involving numerous stakeholders, including architects, engineers, contractors, and clients. Processes facilitate clear communication channels, ensuring that everyone involved understands their role and is on the same page. Collaboration is enhanced, and potential misunderstandings or conflicts are minimized, fostering a harmonious working environment.
And longevity
If you envision selling your company on day, prospective buyers will prioritize examining whether you have established and adhered processes. Having well-established operating procedures is a vital factor for investors and buyers because they ensure the seamless continuation of business operations in your absence.
3 ways to create process and pave the way for success
Use a template to get started in seconds It’s about 10x faster to tweak a template to your liking than to have to document from scratch! You'll be able to save a bunch of time and improve productivity.
Use technology to share process with everyone on the team Getting your team to adopt and follow process is probably tougher than your last project, but it’s not impossible! Software like Whale is designed to help your team access the processes they need when they need them!
Make it mobile The NEW Whale App You can't use processes in the construction industry because you're always on-site or driving from site to site. Right?
Wrong!
Documenting your processes in a tool with a mobile application means that you and your teams can access them whenever, wherever.
Bottom line? The role of processes in the construction industry is crucial
In the dynamic world of construction, where every project presents a unique set of challenges, processes provide a structured framework for success. From enhancing efficiency and controlling costs to mitigating risks and ensuring quality, well-established processes are the key to navigating the complex landscape of construction projects. Embracing a process-driven approach is not just a best practice; it's a fundamental necessity for the sustainable growth and success of the construction industry.
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David G Fisher, Executive Contributor Brainz Magazine
David G Fisher, is a leader in construction management and business development. An experience of severe burn out and stress, after 40 years in construction management and ownership left him broken and un-capable to do his role. David then initiated strategies to dramatically enhance his skills and performance to conquer these obstacles. He has since dedicated his life to helping other construction owners unleash their true potential to get their businesses and themselves back on track. He is the CEO of Construction Consulting and Coaching; the premiere construction owners exit program. His mission: We don’t need to be prisoners in our own businesses.
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