The Benefits of Managing Construction Equipment with Asset Management

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Managing construction equipment across multiple building sites and plants can be challenging for most construction companies. Physical assets might include plant and machinery, tools, trucks and other vehicles, IT equipment, and people. And, keeping track of these assets while also being able to understand their value isn’t easy. But the process can be made much simpler through the use of asset management software.

One benefit of using asset management software in a construction business is being able to track and monitor all assets effectively. But, there are many more benefits that can help to enhance day-to-day operations.

6 Benefits of Managing Construction Equipment

1. Gain a Better Understanding of Asset Life Cycle and Costs

Part of managing construction equipment involves knowing precisely what equipment and tools you have and how much each one costs to operate. It’s also essential to know when these assets require routine maintenance or repair, and when they should be replaced.

Asset management software can help managers to understand what assets they own or rent, how much each asset is worth, and its current condition. It also enables them to figure out the remaining service life of all assets, so a business can plan ahead and invest in new equipment when needed.

2. Reduces the Risk of Theft on Site

The construction industry is the subject of frequent petty and organised crime. The Chartered Institute of Building conducted a survey involving senior-level construction workers. And, according to the results, 21% of respondents said that they experienced theft every week.

Allianz Insurance also did some research into plant theft and 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 to Allianz 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 still at risk. Asset management software, which includes asset tracking tools,  can help to improve the security of construction assets and reduce the risk of theft and loss.

Through asset tracking tools, there are two main ways to track construction assets: active and passive. Active tracking involves using a tool such as a GPS tracker, which requires no human interaction. Passive tracking is where a project worker can scan a piece of equipment that carries a barcode label or QR code.

Active tracking is typically more expensive than passive tracking, so you might only want to utilise this on high-value equipment. This asset tracking data is synced into the system, where you can access it quickly.

3. Improved Visibility of Construction Assets

A large construction company may have hundreds, or even thousands, of assets that need to be transported to and from different sites. With this in mind, an asset management system can help to see where equipment is located at all times.

Having an accurate asset register can also help companies to eliminate pesky ghost assets.

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

4. Easier to Manage Equipment Maintenance and Repair

For a construction business 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 a very 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. Effectively reducing the risk of having to make unexpected and urgent repairs. With maintenance scheduling, they’re also able to assign jobs to various technicians, and each technician will have the ability to create notes about the work undertaken.

5. Improved Safety for Construction Workers

The Health and Safety Executive (HSE) claims that every year, many 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 construction plant and machinery assets, businesses can prevent certain types of accidents. They can also remove assets from service as soon as they reach their end-of-life.

6. Managing Construction Equipment Helps with 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.

Managing Construction Equipment with Asset Management Software

There are several types of software that can be implemented to help with managing 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 the ground, 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.