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Thanks to computer technology,
today's contractors have an easier time, whether they're developing
a design, creating a winning bid, managing a project, or taking
care of the payroll. While those are but a few of an ever-increasing
list of software functions, one ongoing problem is making sure that
communication between the packages is easy, swift, and accurate.
Contractors, especially those in the forefront of taking on this
technology, report that poor communication can cause confusion and
extra work and introduce error. Thus, what is supposed to make a
contractor's life easier turns out to be an added burden.
"The most common problem is communication between packages
and coordination of that information," emphasizes Michael Lambert,
information technology (IT) manager for Chasco Contracting in Round
Rock, TX. "We have eight different packages, including estimating,
engineering, accounting, project management, graphics editing, and
land surveying." He notes that although his central-Texas firm tends
to focus on a 100-mi. radius, it handles $40 million$60 million/yr.
in projects, with at least 20 going at any given time. Its 500 field
and office people are dealing successfully with a lot of information,
despite the challenge of software package communication.
Lambert reports that Chasco has taken on third-party
software to help improve such communication. "For example, we use
EarthWorks, estimating takeoff software [from Trakware Inc. of Albuquerque,
NM], and we use it to do takeoffs before submitting construction
bids. That software communicates between our engineering software
and our accounting software. It helps us ensure that our winning
bids are not losers. It has greatly improved the precision and efficiency
of the actual bidding process because better communication produces
bids in a more timely manner and gives us a better chance at bid
opening." The third-party software also is used in conjunction with
engineering software to help it communicate with the accounting
package.
Furthermore, better software communication enables this
firm to help the client in the design process, including developing
a budget for the project. This is provided as a service to the client.
"Then the client can use our services to help in their communication
with the engineering firm they've selected. We get more people involved
at the start of a project, which helps save time at the design phase.
This allows clients to get a better view of what they're trying
to do. Plus, they're getting a 3-D view of the finished project."
In terms of what a contractor should look for when taking
on other packages, Lambert suggests, "Choose those with standardized
formats as far as information storage and accessibility [go]. Also
keep in mind the types of software it will be coordinating with
so you can get packages that are more compatible with each other.
On the personnel standpoint, have your people familiar with a broad
range of software. Even if you're using AutoCAD, which has many
different applications, if someone is familiar with the different
types, it's a lot easier to coordinate with the different projects."
Lambert also points out that it's important to keep up
to date with those packages. "We've had three versions of engineering
software in the past year alone. Programs are a hot topic. Competitors
may be gaining advantage over you concerning efficiency and effectiveness
because they're keeping costs down with more effective use of manpower.
Also newer packages tend to be easier to use and coordinate even
better with existing packages."
At the same time, he notes that accounting packages are
fairly standard and there's a limit in upgrading those because of
the complexity of the accounting process. "But for engineering or
project management, there's always a more efficient, more effective
way to perform tasks, to reduce time needed in that phase of the
organization. This is important to a company our size because we
can make better use of our field personnel." That's because Chasco
can better schedule tasks, ranging from delivery of materials to
ensuring that employees with the necessary skills are on a site
at the exact time they're needed.
Lambert emphasizes, "The key point is to coordinate not
only your own efforts but also those of your subcontractors and
vendors. Better software-package communication helps in this." He
further counsels contractors to seek software vendors that can provide
training and support. He believes that their products will prove
less expensive in the long run than packages purchased over the
Internet where training and support are usually extra expenses.
Lambert
adds, "The more advanced and more compatible software becomes, the
more of a chance you have of solving complex issues. You may not
cure a problem in the initial software you're using, and thus problems
can pass down through the generations. For example, if an antivirus
software designed for curing problems with other software packages
being used on your machines isn't configured properly, it can create
complications with the performances of those other packages." That's
because when someone in the field tries to access the computer at
headquarters, the antivirus software might see the package the field
computer is using as an intrusion and try to isolate the program
back at the office. This can limit communication between onsite
computers and home-based computers.
Lambert has seen substantial development with computers
and the industry they serve. But he comments, "I expect that there
will be even better support developed for wireless technology. I
expect that programs being used in the construction industry will
continue to improve and that robotics and computers will become
a more integral part of the construction process."
Early
User Talks Advantages
When
it comes to dealing with compatibility problems, Sam Sposeto of
Sposeto Engineering Inc. in Union City, CA, points out that his
company has been dealing with that challenge for 22 years. "We were
one of the first contractors our size that began using electronic
technology in the San Francisco Bay Area. It's given us a tremendous
advantage because we are involved in public works contracts, civil
works, excavation, new construction of streets and highways, and
structural concrete work." This variety has helped the firm pass
$5 million in annual sales yet remain relatively local.
Sposeto reports that the company's first software consisted
of two packages. "One was a Keymax program from IBM for accounting,
and the other was MC2 for estimating. IBM was able to
integrate the two packages. The accounting package gave us the latest
productivity reports, which helped quantify the number of projects
that we would be able to handle at any given time. We also discovered
that by going with a computerized system we could provide even more
documentation." In addition, Sposeto estimates that the error rate
when working up a bid was reduced by 95%.
As with other successful contractors, he emphasizes that,
in the selection of software, the first task is to be sure any new
software is compatible with what's already in the office or on the
site. "In using MC2 software, we've also been able to
use AutoCAD, EarthWorks, Lotus, Microsoft, SureTrak, and other programs."
What about trying new programs? Sposeto responds, "Trial
and error is not for us. Suppliers need to prove to us their program
is compatible with those we're already using. If it does not communicate,
then we're not interested in their software." He also believes that
contractors should consider whether it is user-friendly and screen-driven.
"All of our software is that."
Better
Communications Lead to Growth
When Roger Thimm, controller for Wondra Excavating in
Iron Ridge, WI, joined the company 13 years ago, only he, Owner
Al Wondra, and Gloria Christian were working at headquarters. Annual
sales were less than $1 million. Now they're more than $6 million,
but the number of employees overseeing these sales has not increased,
thanks largely to taking on electronic technology.
Thimm
reports that he got the company into software as it dealt with the
realities of installing underground utilities 20 ft. down and building
roads, parking lots, and other surface projects. "We switched from
paper to computer programs by purchasing Hard Dollar [software]
in 1996 for estimating, subcontracting, and project management,
while Computer-EZE is our accounting system and Insight is for site
work." All this has helped the company realize dramatic growth.
He points out that Hard Dollar software offers quite
a few functions that have eliminated the need for other packages.
"I've been talking with other contractors about getting automated.
You've got to start. The technology has been moving farther away
from where the nonusers are. Thanks to the packages we've taken
on, the owner is able to spend a lot of time in the field."
Thimm points out that there's been a tremendous drop
in the error rate on the human side of the equation. "Furthermore,
we've had people come and go over the years, but the information
they used to take with them now stays in the computer." In addition,
Thimm was able to get three employees from the field
One goal is to have information for making better bids
in a shorter time. Looking over jobs this firm has completed, the
controller recalls a recent one in Watertown near I-94 that involved
a new industrial park and included roads and underground utilities.
"The bid was due early Monday morning. I did that bid preparation
in one day, thanks to the software packages being able to communicate
with one another. Out of seven bidders
During the project, the software allowed Thimm to expedite
orders of supplies and coordinate orders for just-in-time delivery.
He also used the computer instead of a file folder to find different
vendors and suppliers. "We were able to put out our needs for bids
and then take the best combination. Thanks to computer communications,
we were assured the best price
Thimm asserts, "Contractors not using the technology
need to get started. It seems there are a lot of people looking
for that perfect system, but they end up doing nothing. Once you
get started, you'll still have to keep updating."
Check
Compatibility
Another key to success involves checking new systems
for compatibility with existing ones. Aryol Brumley, vice president
of Triad Western Constructors Inc. in Cortez, CO, explains, "Our
accounting and estimating systems are integrated. That's because
we looked to compatibility when we were deciding just which accounting
package we were going to add." This $20 million-a-year firm had
taken on Hard Dollar's BID*BUILD earlier, adding Dexter + Chaney's
Forefront accounting package in 1996.
"We went with Forefront because it was already integrated
with BID*BUILD. We knew we could add the new package without a lot
of headaches." Brumley reports the training as all done in-house,
and it took about three months to get comfortable with the combined
package. "I'd had some computerization when I got here in 1983.
Our sales were $2 million between 1984 and 1985 after we switched
from manual to electronic. Now we are 10 times larger but have only
had to add one or two more office staff members. Our focus has been
on building field crews instead."
Triad is qualified to work in the Four Corners area as
well as in Nevada and Texas. "We get out 500 to 800 miles, but with
the software we can prepare a bid in just a couple of weeks, depending
on the complexity of the project." Triad's specialties include underground
utilities, water- and wastewater-treatment facilities, other treatment
technology, and system restoration, so bids can get complex indeed.
But thanks to electronics, the company can get a 50-page report
in five seconds instead of two days and not have nearly the concern
regarding errors.
"Now with the new module we've taken from Document Imaging
[Dexter + Chaney], we can keep a copy of every invoice and timecard,
and each is available at the click of the mouse. Our office managers
like having all of that information at their fingertips, which they
can broadcast to everyone concerned. It makes for much better coordination.
Integrating software makes life easier for the contractor." It also
makes life easier for those who have to gather that information.
Brumley believes that contractors should attend software
conferences. "Software developers have held conferences over the
years to allow every user to make suggestions, to make changes.
They allow the user to provide input in software development. Contractors
should attend when possible."
One such improvement he further comments on is Document
Imaging, which came with the Forefront program. "Document Imaging
makes for better communication. Had Dexter + Chaney not offered
that, we would have had to get a third package. They and Hard Dollar
got together and worked together integrating the software packages."
Catching
Errors in Time
In Oxnard, CA, Blois Construction relies on computer
compatibility as an early-warning system, rather than waiting two
to three months to get the actual figures for a specific project.
Jim Blois, copresident with his brother Steve in this company founded
by their father Robert, explains how this is done. "We hold a project
managers' meeting every Wednesday. There we learn where each project
is in relation to how we're supposed to be doing on the job. On
Wednesday we know where we stood the previous Friday."
This is important to a firm ($16 million$20 million
annually) that will take on jobs ranging from $5,000 to $5 million
and that do perhaps 100 projects in any given year. One project
involved 10,000 ft. on an 8-in. sewer line the company was installing
amid a middle-income subdivision. Blois adds, "We installed half
of it and then had a break of a couple of weeks before proceeding.
It was at our Wednesday meeting that we discovered we were way behind
after installing the first half. With the numbers just two days
old, we were able to go into the original bid and realized it had
been too optimistic for production. We'd figured on 750 feet a day
but were only doing 250 feet."
The managers conferred and worked out a strategy for
increasing field production to 600 ft. and then met on-site with
the foreman and went over all of the numbers. "When all was said
and done, we still lost money
In 1982, Blois Construction started its computerization
with payroll. "I was young and eager, so I was given the task to
figure out how to fully utilize this computer and software that
we had. Basically I learned by doing, but I did take one class with
the vendor. By 1985, we had gotten to the point where we were successfully
using all the modules of our accounting software, including general
ledger, accounts payable, accounts receivable, job costing, equipment
costing, and estimating. In 1999, we shifted to Hard Dollar for
our estimating and project management. Until 1997, we operated on
a UNIX operating system with remote Odumb' terminals. Then, in 1997,
we switched to Windows for better productivity." This change also
opened the way for better software-package communication.
If you are considering adding software to your operation,
he recommends getting whatever you're most comfortable with. "Implementing
accounting software is harder than [implementing] estimating or
project management software. Typically accounting software has to
be implemented as an all-or-none proposition. You cannot do it halfway.
On the other hand, estimating and project management software can
be implemented on a bid-by-bid or project-by-project basis. The
best way to start with estimating or project management packages
is to do trial runs with them on smaller, simpler jobs."
Blois also agrees that vendor support is crucial. "Too
many contractors buy the packages and then leave them sitting in
the office rather than use them. You've got to have the commitment
that you're going to get the training necessary so you can start
gaining the efficiencies of the technology. It does take a lot of
training and utilizing your vendors. If you go into it halfheartedly,
you're not going to be able to achieve the efficiency you expect."
This well-experienced software user concludes, "We have
several software packages to help us operate the company. I don't
think it'll ever happen that one vendor can meet all the needs of
the contractor. You have to do some of the integration yourself.
However, it's getting easier and easier by leaps and bounds to integrate
the various packages."
Vendors
Respond
"There are two things that are the most important from
my perspective," comments Brad Barth, senior vice president of product
management for Hard Dollar Corporation in Tempe, AZ. "First make
sure any software you're looking at supports XML [extensible markup
language], which is a new standard for sharing information. It essentially
allows two applications not made by the same vendor to communicate
with each other. It's like four people in the room, each speaking
a different language. XML is a common language."
He adds that there are two camps in the software world.
"One is the best-of-breed approach, which is to buy a different
package for each need. The other is the we-do-it-all approach. We
fit in between the two, which leads to the second important consideration:
Look to the potential users and see where there are touch points
and lots of interaction going on. When there is not a lot of daily
interaction occurring, such as among estimators and accountants,
it is less important to have a single package that can seamlessly
integrate those two functions. When there is a lot of interaction,
such as among estimators and project managers, it becomes more important
to find a single package that can serve the needs of both parties."
He then cites the example of a contractor in Indiana
who
Regarding training users, Barth admits, "Training is
a process that's hard to pin down. There are contractors of all
sizes and varying sophistication when it comes to software, so actual
training can take anywhere from just a couple of days to a couple
of months. We do training
His counsel? "Whatever you buy, make sure you get programs
based on the latest technology. Things change very quickly, and
you need to make sure you're not getting obsolete technology when
you buy. Look into the future to make sure you're buying a solution
that is at the beginning of the technology life cycle, not nearing
the end."
Standing
Alone
When software packages aren't compatible, they can create
problems, agrees Trakware Inc. Chief Executive Officer Gregg LaPore.
"It's a headache. People have to print out reports and key them
into another program. It's a real problem because there's no common
language that fits all programs available, although some software
companies are starting to use the XML standard in sharing information
between the various packages.
"We
recommend that contractors who want to extend their utilization
of electronic information gathering get their software from the
same supplier. For example, both Timberline and Masterbuilder make
programs that can be purchased as modules and integrated with existing
systems.
"Our niche in the market is writing excavation software,
with our goal to write easy-to-use software. We don't integrate
with other packages; we write standalone software. In the end, our
software generates only a few numbers, which can be easily transferred
to a spreadsheet. If users have Timberline or other programs, they
can estimate a drawing in our EarthWorks program and then take the
cut-and-fill volumes and the import and export volumes and paste
them into estimating programs of whatever brand they're using through
the clipboard."
LaPore comments that what takes a day to estimate by
hand can be done in one to two hours with software
Journalist Joseph
Lynn Tilton specializes in land and building issues.
GEC
- March/April 2004
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