In this article, we aim to assist finance teams within construction companies in finding solutions to make working with contractors more seamless. The focus is on digital tools that improve contractor management and where to find them.
Over the past few weeks, we’ve been discussing how using contractors can significantly impact construction projects. However, this also introduces certain challenges like managing different rates. We have also explored ways to make this process easier and more intuitive. If you've read the earlier articles, you’ll know we advocate for a digital approach to contractor management. Chances are, you’ve even been motivated to start exploring your options... But now you’ve reached a wall.
While the market is saturated with solutions, an industry as specialised as construction isn’t as crowded. In fact, the tailored solutions don’t always hit the mark. So, what’s next? Don’t give up just yet. This blog article will guide you through finding the tools that work best for you in the most intelligent way possible.
Why Is It Important to Manage Contractors?
From a financial perspective, contractor management is mainly important to ensure that workers are fairly compensated for their time, work, and the results they deliver. Since many contractors charge different rates than permanent staff, these need to be calculated separately. Additionally, rates may also vary depending on the task, deliverables, weekdays, and other factors.
Keeping track of contractor-related expenses also enables you to monitor your project’s budget closely and forecast future costs more accurately. In short, efficient contractor management benefits not only the current project but also future endeavours.
The Right Tools for Construction
Since the digitisation of the construction sector is still quite delayed, there aren’t many ‘industry best practices’ as such. However, some tools are essential to initiate the process because they will be central to your workflows.
Customisable Timesheets
If you read our previous articles on how to effectively pay contractors without worrying about differentiating rates, you must understand that customisable timesheets are indispensable. Unlike traditional time tracking, which simply records the time spent on tasks, a digital approach serves multiple purposes. Specifically, it helps to quickly calculate compensation, even when dealing with complex conditions.
Every vendor offers a different level of customisation and features to shape the process. While each company’s needs and priorities depend on its goals and factors like internal structure, it’s always best to aim for a solution that provides the most freedom. At Timesheet Portal, we have a unique system of timesheet rules that allows our users to take full control of how their timesheets are structured and function. You can either customise one of the pre-built templates we offer, use it as it is, or create an entirely new version from scratch.
Centralised View of Everything
Understandably, you won’t be using just one tool. From the finance team’s perspective, you will, at the very least, be using an accounting package and will have some visibility of the project management tool. Naturally, each of these solutions will offer different insights, and it’s your job to combine them to create the full picture you can analyse. However, it’s time-consuming to constantly click through various tabs to extract figures, and it’s very easy for data to go missing in the process, leading to errors.
To avoid the risk of skewed data, poor decisions, and wasting time trying to extract information from your tools, prioritise gaining a centralised view. It’s straightforward when all your software comes from the same provider, but that’s rarely the case. However, through integrations and custom APIs, you can connect them with each other. This way, different solutions you use will automatically share data, making it simple to access everything from a single place with just a couple of clicks. Not to mention, this could also lead to unlocking new insights you previously had no access to.
Navigating the Market
Even with a clear idea of what type of tool you need, finding the one that will truly lead to success is not straightforward. Not when the software market is vast and constantly expanding every second. You need a customised approach.
List of Requirements
Just as projects require a plan, you shouldn’t dive into software hunting without one. In a market that is highly saturated, having a clear idea of what you need is crucial; without it, you risk investing in software that might be suitable but not perfect. It doesn’t help that sales teams and copywriters are very skilled at dazzling their audience, so it’s important to have your requirements written down. Even if you think you will remember them, you won’t, and you must stick to your list.
Start by noting the features that are a deal breaker for you. Then, list the ones you require. Finally, organise the wants and nice-to-haves into categories. It’s also wise to estimate the capacity needed for each feature, as some vendors charge per number of users rather than per module. Keep this list handy throughout the entire process—during research, demonstrations, and implementation.
Don’t Rely on Obvious Keywords
Naturally, since you are in a niche industry, you are likely to start your search by including its name in your query. However, this is arguably not the best approach when looking for the right software. Simply put, you’re on a mission to find a tool that does the job for you, not one that is marketed specifically for you. Just because a tool is described as aimed at construction firms doesn’t mean it’s the best fit for you. Another reason to keep that list of features nearby.
Since digital transformation is significantly delayed in the construction sector, most solutions do not explicitly state they cater to it. However, this doesn’t mean they aren’t suitable for your needs. When it comes to contractor management, you definitely don’t need a solution specifically labelled as a tool for the construction industry. Put simply, at their core, all solutions of this kind operate in a more or less similar manner. It's very rare for them to be sector-specific. Therefore, instead of focusing on industry keywords, prioritise features and compatibility with your existing software.
Kickstart the Change
The best moment to start digitally transforming the construction industry is now. Not many companies have adopted the innovation yet, so being an early adopter will give you an advantage moving forward. So, why not start today?
Construction Firms Thrive with Timesheet Portal
Our software is especially effective with construction firms. They constitute the largest portion of our Project edition clients. This demonstrates our deep understanding and the suitable toolset for construction companies to address their challenges and reach their objectives. Even with years of expertise supporting our work, we remain attentive and adaptable to the constantly changing market.
To streamline your current and future collaborations with clients, Timesheet Portal offers a range of modules. We provide highly configurable timesheets, comprehensive timesheet rules, detailed reports, an onboarding system, a holiday management platform that calculates holiday accruals, and much more. Instead of merely facilitating smooth communication with contractors, Timesheet Portal takes control of most manual tasks, allowing you to concentrate on what truly matters. No more wasting time on tedious administrative duties - we enable you to dedicate more time to building meaningful relationships.
Summary
Contractor management in construction presents many challenges, but there’s a fairly simple solution – digital tools. However, finding the right ones can be tricky. As always, your company’s goals should guide you in choosing features to prioritise. Certainly, you need customisable timesheets to handle different rates and a centralised platform to keep track of all the figures at all times.
When searching for a solution, don’t restrict yourself to industry-specific keywords only. Instead, compile a list of features you require and select tools for trial based on how well they match your needs. Ultimately, it doesn’t matter who the software is marketed towards - what matters is whether it can do the job you need.
Not to mention, you might not need to look far. Chances are, you’re already in the right place. So, let’s have a chat.