Market conditions can be full of surprises. How an organization responds to these surprises can mean the difference between success and failure. Increasing demand for information, rapid changes in technology, rising costs (for land, material and labor), and increasing cycle times are posing significant challenges to the business. The alert organization will identify and take advantage of challenges, and convert them into opportunities to achieve superior results. Below is an illustration of the typical challenges in the construction industry and the solution proposed to convert them to a business advantage.
Challenges faced by Builders / Developers / Project promoters
- In land acquisition
- Difficulty in maintaining track of properties being negotiated for purchase
- Inconsistent tracking of status of negotiation with land owners
- Difficulty in maintaining & retrieving information on land bank acquired
- Inability to track activities of property agents
- Irregular updates on costs involved in acquiring properties
- Improper information on various litigations the organization is involved in
- In securing approvals / sanctions for a project
- Lack of clarity on approvals required for a project
- Lack of information / updates on status of various approval applications
- No clear information on the Liasioning process & people handling the same.
- In budgeting for project promotion & marketing activities
- Non availability of a effective marketing budget preparation tool
- Lack of historical data to suggest effectiveness of past marketing strategies
- Inability to effectively track expenses related to promotion activities
- No proper tool to track budgeted v/s actual expenditure & alert the organization if any deviation is observed.
- In handling customer enquiries
- Lack of standard methodologies to record enquiries
- Inability to effectively capture information related to the enquiry
- Improper / ineffective follow up of enquiry Ė losing a prospective customer.
- In sales transactions
- Lack of order in maintaining costing sheet, payment schedules related to various projects & hence difficulty in retrieving the same when required.
- Difficulty in effectively & efficiently handling customer payments & receipts
- Inability to retrieve & analyze data related to sales transactions ( like outstanding payments, revenue receivable , payments received , delayed payments , interest calculations , refunds )
- Difficulty in tracking & effectively addressing customer requests for customization, customer feed backs / complaints.
- In project execution
- lack of clarity & updates on various project related parameters like work progress , cost updates , inventory status, RA Bills of contractors
- No proper mechanism to retrieve & analyze project related data, to initiate corrective measures & for effective decision making.
Challenges faced by Contractors
- In project bidding
- Inaccurate estimates of various costs involved
- Lack of proper mechanism to analyze the quotations & the profitability of quoted rates
- Inaccurate cost & resource projectionsĖ have direct impact on financial performance of the organization.
- Lack of structured & organized historical data of past bids to help arrive at competitive prices.
- In project execution
- Lack of proper mechanism to track activities , costs , progress , quality issues , of each & every bid item
- Difficulty in handling issues related to sub contracting of tasks & sub contractor billing & payments
- Inefficient RA bill management
- Lack of accurate information on performance & utilization of men, material & machinery (3Mís)employed.
- Lack of effective tools to monitor & manage inventory, & reconciliation of materials.
- Ineffective management of handling multiple agencies involved in project execution.
- Lack of proper mechanism to review a project, & analyze the performance of various parameters of a project once it is closed.
What can EXILANT offer?
EXILANTíS easi CONSTRUCT offers an cutting edge web based enterprise solution for builders & developers, contractors , project management consultants , architects , direct selling agents , real estate brokerage houses, which effectively addresses the challenges faced by the industry in each & every sphere of the real estate & construction business s.