5 Key Benefits of Managing Construction Equipment with Asset Management Software

Updated: May 2021, August 2021, March 2022

Managing construction equipment across multiple building sites and plants can be challenging for most site managers and businesses. Typical assets include heavy machinery, tools, trucks and vehicles, IT equipment, and employees. Keeping track of all your assets, whilst also being able to understand their value, isn’t easy. But the process can be made simpler through the use of Asset Management Software.

From increased compliance and safety to real-time tracking and monitoring, asset management tools are essential for construction operations with multiple assets.

In this guide:

1. Gain a Better Understanding of Asset Life Cycle Management

Part of managing your construction equipment involves knowing precisely what equipment and tools you have and how much each one costs. It’s also key to know when these assets require routine maintenance and when they need replacing. Essentially, an asset has a life cycle that can be split into four key areas:

  1. Planning
  2. Procurement/Acquisition
  3. Operation and Maintenance
  4. Disposal

Asset Management Software allows site managers to understand and improve their asset life cycle management. As well as knowing what assets they own or rent, how much each asset is worth, and their current condition. It also enables them to figure out the remaining service life of all assets. Enabling businesses to plan ahead and invest in new equipment when needed.

Four key stages of the asset life cycle

2. Reduce the Risk of Theft on Sites

The construction industry is the subject of frequent petty and organised crime. The Chartered Institute of Building conducted a survey that found 21% of respondents experience theft every week.

Allianz Insurance also found that construction sites are increasingly targeted by criminals, many of which are organised gangs. The results indicate that plant theft is rising year on year. In fact, there were 428 instances reported in 2013, 665 in 2017, and 730 by the end of 2018.

Small assets are often targeted for theft because they can be easily moved. But larger, more valuable assets are also at risk. Asset Management Software provides the tools to help improve the security of construction assets and reduce the risk of theft and loss. Including asset tracking tools such as GPS trackers.

By using tags that help locate construction equipment in real-time, site managers can know where assets are located and who used them last. Resulting in a reduction of lost assets.

3. Improve Visibility of Your Construction Assets

A large construction operation will have hundreds, or even thousands, of assets that need to be transported to and from multiple sites. This is where an asset register can come in handy.

An asset register is built using the tools provided by an asset management system. It enables businesses to collect all types of data regarding their assets at stores in one central place. With this in mind, an asset management system can help provide a real-time view of where equipment is located at all times. As well as help businesses to eliminate ghost assets, which may be costing them in insurance and tax fees.

Asset management tools can even support purchase order requisitions and logistics. Meaning you can deploy and allocate equipment to the right site when needed. A robust system will allow multiple users to access it. This means that the on-site project manager can create requests for equipment to be collected when it’s no longer needed, or log issues if tools or machinery require repair.

4. Easily Manage Equipment Maintenance Schedules

For a construction operation to be profitable, it needs to ensure that all essential assets such as plants, machinery, and tools are working effectively. A backhoe loader, for example, is an expensive piece of machinery. If it’s out of action, it could significantly delay construction, increasing lead times and costs to the project.

Using Asset Management Software, equipped with a maintenance module, allows managers to plan for preventative maintenance. This reduces the risk of having to make unexpected and urgent repairs.

With a maintenance schedule, you’re able to assign jobs to multiple technicians. Each technician will have the ability to create notes about the work undertaken and log them into a shared dashboard.

5. Improve Safety for Your Construction Workers

The Health and Safety Executive (HSE) claims that every year, construction site workers are killed or injured as a result of their work. The HSE reports that mobile plant and electrical accidents are among the most frequent causes of accidental death and injury.

Equipment that isn’t working correctly presents significant safety hazards to construction workers. By effectively managing and maintaining plant and machinery assets, businesses can prevent workplace accidents. They can also remove assets from service as soon as they reach their end-of-life.

Bonus: Ensure Construction Equipment Achieves ISO 55001 Certification

ISO 55001 is an international suite of standards for asset management. The purpose of ISO 55001 is to help asset managers optimise their assets to reduce the overall cost of ownership while meeting performance and safety requirements.

ISO 55001 allows construction companies to realise the value of their assets and balance out asset risk, cost and performance. It brings together inter-related elements like asset management policy, strategy, objective, plans, and implementation.

To become ISO 55001 certified, you must be able to demonstrate that asset management is being carried out to the required standard. The right software can help you to do this by giving you a structured, best-practice approach to asset management.

Find Asset Management Software to Manage Construction Equipment

There are several types of software that can be implemented to help with managing your construction equipment. So, it’s vital to analyse your business requirements in full before deciding which system to use.

Part of this process means getting buy-in from senior management, key stakeholders, and employees. All necessary staff should understand their role and responsibilities concerning asset management for the process to work effectively.

As well as construction workers on-site, you’ll also need to work closely with other departments, such as finance. For instance, finance staff will need to use the system to work on purchase orders, invoicing, budgeting, and reporting.

Once you’ve got approval across the organisation, the next stage is to make sure your preferred construction Asset Management Software meets your business needs. Not just now, but in the future, as you scale your business for growth. If you need help in comparing different solutions, Comparesoft can help.

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