The Benefits, Best Practices, And Importance Of Migrating To Cloud-Based Construction Management

With uniquely complex compliance and project management, running a successful construction business demands determination, efficiency, and an eye for detail. Business owners need a clear picture of every business component (job costing, payroll, labor, paperwork) to yield maximum profit, year after year. 

One method to increase efficiency in a construction business is transitioning to cloud-based construction management software. From accessibility to security, making the switch from traditional software can help your business grow faster and generate more profit. 

Navigating a transition to cloud-based systems can seem overwhelming and costly. However, with the right preparation (and the right support team behind you), migrating your business to the cloud can yield incredible ROI—at an incredible pace. 

This article will share what you need to know about “going cloud” as a construction company, and help you transition effectively with best practices, tips, and tools. 

The Risk of Not Going Cloud 

Many construction companies use traditional pen and paper or manual task management to handle back-office operations. While nothing can replace the empathy and creative problem-solving skills of a human mind, manual data entry (whether it’s on paper, or in a spreadsheet), can actually cost you more money than it saves. 

Aside from the cost of labor hours processing it (with each HR task entered by hand costing US businesses roughly $5 per action), and the cost of payroll mistakes…  

The security of your bookkeeping is at risk, too. 

ERPs (like Sage) can help make running operations easier and more efficient, however, legacy technology (i.e., software and services tied to physical servers or machines) is phasing out due to its inflexibility, high upkeep costs, and need for on-hand experts to manage it. 

This is especially challenging for construction companies because it’s such a mobile profession. With multiple job sites, equipment, employers, contractors, and subcontractors to manage—tracking work hours, expense reports, and mitigating overruns requires a more responsive (and interconnected) IT infrastructure. 

And that’s where cloud computing comes in. 

A Straightforward Explanation of Cloud-Based Software  

Also known as SaaS (Software as a Service), “cloud-based” means the software exists within an internet network (web-based), and not within a physical server. This means it's highly portable and isn’t restricted to one specific location. 

Being accessible 24/7 via an app, web browser, or a desktop “client”, productivity and efficiency begin to skyrocket. Additionally, mobile device-to-desktop connectivity enables real-time collaboration and consistently up-to-date data records. 

Cloud-based construction management software also supports more accurate payroll, since employees have remote access from their mobile devices, and can enter hours worked from wherever they are. And thanks to automated workflows, processing and approving payroll can be 70% faster and easier. 

But this is just the beginning of how migrating to the cloud creates a high-ROI opportunity for construction businesses. 

4 Benefits Of Migrating Your Construction Business To The Cloud 

The advantages of shifting to a cloud-based construction management system are both immediate and compound over time. Simply introducing automation and integration with your current ERP and accounting software can increase your profits because you’re not wasting money on fixing mistakes, or dealing with overruns that could’ve been avoided with better data.  

Here are four of the most notable and immediate benefits of using cloud-based software. 

Improved Collaboration and Communication  

The foundation of what makes cloud-based management a productivity boost is its connectivity. It harmonizes the components of your back-end operations (yes, including any pre-existing ERPs or accounting systems).  

By eliminating information and communication silos between your field and back-office team, cloud platforms enable team members, subcontractors, and stakeholders to access and update project information in real-time—from any location.  

Additionally, accuracy and efficiency increase because all of your AP, AR, and payroll data is centralized in one platform. By having all of your project data consolidated in the cloud, miscommunication and errors are more easily avoided, which contributes to smoother project execution.  

Scalability and Flexibility  

One of the biggest drawbacks to legacy ERP systems is their rigidity. They’re expensive to install, expensive to upkeep, and more difficult to update than cloud-based software. Switching to the cloud is ideal for businesses of any size thanks to their flexibility in both pricing and scalability. The right cloud-based platform adapts to your business and grows with you–wherever you go.  

From data storage to granting user accessibility, having scalable resources to accommodate your evolving project needs lets you grow at your own pace. You have more mobility and can adapt to situations proactively, instead of struggling to stay competitive. 

Cost Efficiency  

As mentioned, one of the biggest benefits of cloud-based software is the cost savings. 

Cloud-based solutions eliminate costly on-premise hardware requirements and reduce maintenance expenses. Additionally, many SaaS offer pay-as-you-go pricing models tailored to your business needs. This means you aren’t paying for features you don’t need. 

Enhanced Data Security and Compliance  

It may seem that switching your systems to an “internet-based” platform could be putting you at more data security risks. However, legacy ERP being difficult to update extends to security measures, too.  

Cybersecurity statistics show that (on average) cyberattacks happen almost every 40 seconds, so staying ahead of data security threats is a continuous battle. 

Because cloud construction management is web-based, the provider can quickly and regularly update security settings to keep you protected against new threats. That means your data is secured by advanced security protocols and compliance standards, protecting sensitive project data from breaches.  

But, even if something does go wrong, cloud-based platforms further safeguard your information with automatic backups and disaster recovery features that ensure data integrity and business continuity.  

If you want to see how these concepts result in real-world business outcomes, read about how Miller Construction was able to decrease payroll errors by 99% after switching to cloud-based construction management.  

How To Migrate Your Construction Operations To The Cloud 

Now that we know why you should consider migrating to cloud-based construction management software (ASAP), the following best practices can help you understand how to make the shift in the most cost-effective and stress-free way.  

• Conduct a needs assessment. Audit your current processes and work with stakeholders (those who are impacted by your current business management process) to identify pain points. This helps you define goals you want to achieve, KPIs (Key Performance Indicators) to monitor, and how to recognize the solutions that will get you there.  

• Plan for data migration. Even the most efficient cloud migration will take time, but work with your chosen service provider, ensure adequate training for your team, and create a plan that helps minimize operational downtime. Also, prepare for bottlenecks and manage expectations as getting comfortable with new software always takes some practice. 

• Monitor and optimize: Implementation is only the first step. You and your team need to closely monitor how the cloud-based transition is impacting productivity. This is where those KPIs come in. See what’s working, and where additional optimization is needed, so you can tweak processes that improve productivity and performance. 

• Ongoing monitoring: Set aside time for regular audits of your cloud-based workflows so you can have accurate insight into ROI. By routinely monitoring and analyzing operational performance, you can be proactive in addressing minor hurdles before they become major bottlenecks in productivity.  

• Choose the right cloud solution. The last and most important step to take is ensuring you choose the right cloud-based construction software. The construction industry’s unique nuances, complexities, and compliance restrictions mean that not just any project management, or AP program, can increase operational efficiency.  

 The software solution should offer features that support factors like vendor evaluation, and integration with your current software stack. 

hh2 is a construction cloud platform built for construction companies by construction veterans. We’ve developed unique and intuitive tools to help with this transition by centralizing your front and back-end data, uniting your business ecosystem, and eliminating silos.  

With smart and user-friendly automated workflows, hh2 helps you eliminate manual data entry, drastically reducing costly human error, and giving your AP and HR specialists more time to focus on high-priority tasks. 

If you’d like to learn more about whether hh2 is right for you… 

Schedule a demo today to learn how hh2’s Cloud Construction Platform can enhance your operational efficiency and work flows.