Like almost every other aspect of CRE operations, construction management is undergoing digital transformation. Getting real-time insight into the actual performance of projects against budget and being able to compare jobs based on various metrics is only possible with a connected software solution. Integrated construction management software can help with efficient data access, communication, collaboration, resource management, regulatory compliance and asset health checks. What else can construction management software do to deepen insight and streamline processes? For Healthpeak Properties, manual document review and reconciliation of tenant improvement allowances previously took 80 to 120 hours per month. Using Yardi Construction Manager, they are now executed with the click of a button. And that’s just one of the benefits the company reports. Integration issues solved Centralizing projects and all portfolio data on a single platform is a best practice. Relying on multiple databases and manual data entry before adopting Construction Manager prevented Healthpeak from easily tracking its commitments and generating reports on tenant improvement allowances. Bryan Schuh, construction accountant, shared, “We had integration issues with other systems. There were always errors, missing items and time wasted on manual reconciliations.” Enhanced tracking and planning Automated workflows make it easy to track change orders and the status of payables against commitments with one click. According to Schuh, that provides a big advantage over the previous manual process. Further, it’s much easier for the company to set up projects in the system.Construction Manager also enhances visibility into Healthpeak’s capital planning. Project managers can easily see which projects have been approved, and centralizing all portfolio information in one readily accessible database has helped the company extend its capital planning from five years to ten years. More efficiency with deal and forecast integration The integration of Construction Manager with deal and forecast management tools (Yardi Deal Manager and Yardi Forecast Manager) further streamlines the revenue lifecycle by enabling clients like Healthpeak to accurately assess and track project costs and timelines. Construction Manager houses monthly/quarterly/yearly job forecasts based on real-time projected final costs and capital expense projections for future years. Project managers quickly and easily create or update job forecasts spreading cost to complete over linear, front-loaded, back-loaded or normal curves. For Healthpeak, automatic population of deal abstracts into Construction Manager from Deal Manager saves many hours of time previously spent on error-prone manual data input. “This integration produces better budgeting and gives us a more accurate portrayal of our project commitments,” Schuh said. “It has saved a lot of people a lot of headaches and prevents us from overpaying on commitments.” Learn more about Yardi Construction...
Yardi Construction
Module Update News
Yardi Construction Management is adding features to address project management tasks. A new, customizable dashboard permits users to access subsets of the core data available in Yardi Voyager. Penny Bailey, Project Manager, Construction at Yardi explains several new functionalities that further improve the efficiencies and interface of the software. Document Organization Whether it’s an essential contract or a quick side note, the planned enhancements to Construction Management make it easier for project managers to stay organized and in control. When project managers need to access documents created in Yardi Document Management, they can now click a link on the Construction Management dashboard. “With jobs, there are thousands of documents and drawings and contracts. It’s a pain to get docs in an accessible, central repository. The link to Orion permits multiple users see documents related to that specific job without bouncing between programs,” says Bailey. Construction Management capitalizes on Yardi Document Management’s advanced search capabilities. Users can search document texts in entirety rather than titles or identification numbers alone. Sometimes, it’s the small things that have a major impact. “We’ve added a quick note icon that floats on the right side of the screen,” says Bailey. “Project managers can make notes and then quickly slide the note aside.” With this feature, users can effortlessly add, edit, and delete notes without using a separate application or uploading multiple documents. Budget On the dashboard, users can now see a real-time budget summary for multiple jobs at once. “Quick access to the current budget and actual cost numbers at a glance is invaluable in determining the status of a project,” says Bailey. The integration for Construction Management and Yardi PAYscan is now more seamless than ever. Project managers can issue approvals for contracts, address change orders, revisions and...
Controlling Costs
Yardi Construction Management
The National Association of Home Builders reports 200,000 unfilled construction jobs in the United States. That is an 81 percent increase in unfilled positions since 2014. The lack of skilled labor has contractors turning to creative solutions. A Growing Problem The shortage of construction workers hit hardest in July 2016. Sales for new construction reached the highest peak in nearly a decade. Builders scrambled to find crews to help meet demand. Construction delays led to appraisal delays, which led to closing delays and a series of increased costs, lost time, and damaged customer satisfaction scores. “There was frustration all around,” says Manuel Cabrera, Branch Manager with CalAtlantic mortgage. “The shortage of workers affects every facet of our business.” Single-family isn’t the only sector feeling the pressure. In multifamily, a lack of skilled construction workers creates a similar strain. Two factors surface as the main culprits of the labor shortage. The median age of construction work crews is 40. Contractors have had a difficult time replacing aging workers and attracting young talent. Changes in immigration policy also effect labor sources. “The shortage of workers comes up at every meeting. The demand is great for business, of course, but when you’re short on skilled labor to fulfill that demand, then what?” asks Cabrera. The dilemma will intensify. Contractors project higher labor costs in 2017. Sun Sentinel reports that 73 percent of construction firms in the US plan to expand their payrolls this year, increasing pay and extending training for employees. Creative Solutions To mitigate costs hikes, contractors are exploring labor-efficient equipment and technologies. Building information modeling (BIM) and other construction software improve the precision of project planning and management. Yardi Voyager Construction Management facilitates worksite management in a mobile-ready platform. Construction Management provides transparency and accuracy...
