At the end of the day, a contractor’s main goal is to hit the project’s objectives—on time, on budget, and to the highest quality—using the resources they’ve got. But here’s the thing: it’s not just about getting the work done; it’s about getting it done in the smartest way possible. When a contractor manages their labor, materials, or equipment resources effectively they’re not only setting themselves up for a successful project, they’re also setting their business up for long-term profitability.
Resource management is the process of tracking, allocating, and optimizing a variety of resources, including labor, materials, equipment, tools, money, and time. It includes identifying and monitoring available resources, assigning and moving resources based on project needs and schedules, and tracking and optimizing resource use and productivity.
Let’s talk about the benefits of managing construction resources effectively, and then take a look at some of the challenges and best practices to keep in mind. Finally, we’ll get into how tech can make a big difference in helping contractors get the most out of their resources.
Benefits of Effective Resource Management
By ensuring that the right resources are available when needed, contractors can avoid delays and keep projects on schedule. When managed effectively, construction resource management leads to a variety of benefits. Here's some to consider:
Identify Risks Early
Planning ahead, both for the short-term and long-term, helps you spot potential issues before they become headaches. Knowing how much work you can handle at once keeps you from overloading your team and stretching your resources too thin. Plus, being proactive is key—like bringing in extra workers before you’re scrambling to meet deadlines instead of waiting until you’re already short on hands.
Increase Efficiency
Keeping an eye on how each resource is performing and figuring out where they work best is a game-changer for improving efficiency. Once you know each resource’s strengths and weaknesses, you can make smarter decisions about where and when to use them, making sure they’re in the right spot to get the most done.
Avoid Overloading
It’s easy to think that throwing more resources at a struggling project will fix things, but that’s not always the case. Too many workers or too much equipment on-site can actually slow things down, especially if there’s not enough work ready or enough space for everyone. By focusing on both short- and long-term planning, overloading can be reduced.
Control Costs
Getting resources to the jobsite exactly when they’re needed helps keep costs down—no overstaffing, no equipment sitting idle, and no piles of unused materials taking up space.
Enhance Collaboration
Resource management is a team effort. Keep the lines of communication open and collaborate with everyone involved. When teams are on the same page, it’s a lot easier to keep the project moving and make sure it stays on budget.
Construction Resource Management Challenges
Ineffective resource management can lead to several problems, including missed deadlines and cost overruns. While it’s impossible to predict every challenge that might arise, here are a few common ones to watch for.
Estimating Future Resource Needs
If you’re constantly sending resources to put out project fires, it can be difficult to predict your future needs. This is why tracking and data gathering are so important. In construction, if you can’t quickly respond to a need, it could delay the whole project. It’s critical to have the right people, materials, tools, and equipment on site exactly when they’re needed.
Skilled Labor Shortages
If you don’t have the skilled workers you need to complete the work you have in progress and under contract, it can cause delays, increased costs, rework, and quality and warranty issues. Ensuring you have a pipeline of skilled labor is important—not just for keeping things moving now, but for long-term success as well.
Scope Changes
Changes to the scope of work can make it difficult to effectively manage resources. If you’re not staying on top of your current and upcoming needs, it can lead to things like worker burnout, scrambling to find enough hands on deck, or downtime while you’re waiting for materials or equipment to show up.
Outdated Management Tools
A lot of contractors are still using old-school tools like spreadsheets to track their resources. The problem with these is they’re not connected to other systems, don’t update automatically, and can take forever to put together. As a result, they often lead to double bookings or assigning resources to the wrong tasks.
Resource Management Best Practices
To get the most out of all your resources, here are some resource management best practices.
Create a Project Resource Plan
Split up the project into phases or tasks, and make sure the necessary resources are lined up for each one. This way, your team knows exactly what’s required at each step and it’s easier to spot any issues before they become problems.
Assign Resources to Suitable Tasks
When you know the skills and strengths of each resource, you can assign them to tasks that are most suitable for their experience, capabilities, and capacity.
Optimize Utilization Levels
Use resource smoothing and leveling to make the most of what you have. Resource smoothing adjusts task start and end dates to match resource availability. Resource leveling involves adjusting float tasks, redistributing the workload, or adding personnel or other resources to respond to shortages.
Use Resource Management Software
Software can give you real-time data, including resource-specific key performance indicators (KPIs), and creates a platform for collaboration. This means you can track progress instantly and make adjustments as needed, without relying on outdated reports.
Lean on Technology
With the help of today’s technology, construction resource management can be much more efficient, leading to increased productivity and reduced costs. A work management platform, customizable to projects or teams, can give construction teams the ability to assess and track resource capabilities and skills, analyze and optimize resource use, and forecast resource demands. These tools also allow teams to track and optimize resource budgets and costs, while providing real-time data and analysis on resource performance.
With these tools contractors and subcontractors can respond to project needs without the threat of over/understaffing, downtime, or lower productivity, helping keep their jobs on time and budget and ensuring project success.
