Close your eyes and think of the construction sector. What images come to mind? Is it an efficient, modern and forward-thinking space, or is it something that’s, at times, a little stuck in its ways and could improve?

Most – if not all of us – would agree that it’s an industry notoriously slow to adapt to change. Many businesses in the construction sector remain reliant on time-consuming methods and payment processes.

Nevertheless, some have begun to embrace technology, and for a good reason too. Cloud-based construction software reduces risk levels and provides one source of truth for a specific area.

This article explores the route to digital transformation and how companies who use a connected software solution better record data and have immediate access to reports and assessments – all at the touch of a button. 

Digital Transformation

As an article from McKinsey starts, COVID-19 has pushed companies over the technology tipping point – and transformed business forever. 

As the pandemic struck in early 2020, millions of us packed up and left the office, forced to work remotely. And, whilst some have never returned, a typical working day for most is now drastically different compared to 2019, regardless of your working preferences.

Such concepts may have seemed unlikely only a few years earlier, but sectors have begun to thrive from it. With this in mind, a survey of C-suite executives and senior managers globally found that the pandemic has accelerated digital transformation by seven years, and, according to Forbes, embracing the era of digital transformation can offer ‘benefits that could give businesses an improved competitive advantage’. 

Other benefits of digital transformation include:

• More business opportunities
• Increased innovation and agility
• Easier collaboration and communication
• Increased information transparency
• Increased productivity

So why is it that the construction sector remains reluctant to change?

Modernising the Construction Sector

The construction sector is a core pillar of the economy in most countries across the world, employing millions and contributing to a significant proportion of the GDP. But despite this, it’s still considered a slow-moving industry when it comes to technology.

But why is that?

According to the 2020 FMI Industry Report, many firms simply aren’t aware of viable technology solutions for addressing their top concerns, leading to a reluctance to adapt and evolve.

Additionally, the average age of workers in the industry is higher than many others, with a slow intake of younger candidates. Whilst this may change in the years ahead, it may explain more about the slow uptake in technology as the right skills don’t currently exist within the workforce. Until the older generation begins to retire and step away, technology adoption and construction may not be the industry norm.

But, as outlined in one of our recent posts, the sector is so tightly interwoven that future practices must be standardised and supported by the industry as a whole, encouraging collaboration across the board.

Mitigating Risk

Construction projects can be incredibly complex and demanding. Risk, by its very nature, is often associated with the industry. But, collectively, there is a desire to mitigate this. It’s here that technology can play a part. 

Recently, we held a webinar on ‘De-Risking Construction‘, where experts and industry leaders shed light on how organisations try to mitigate risks in the construction process, focusing on the intersection between risk and technology.

One aspect that was focused on is how old, antiquated methods of managing payments and paper trails have continued to be manual and time-consuming. Whilst these working ways may have been all that was available in the not-too-distant past, technology has caught up.

Relying on older working methods can quickly turn into a recipe for disaster. And, when factors such as legislation, compliance, supply chains or deadlines get considered, it’s easy to see why. 

Far too often, those in charge of payments are trying to spin too many plates at once. All it takes is one to drop before delays occur and a project grinds to a halt.

Digital payment solutions can go a long way towards mitigating risks.

A Single Source of Truth

Platforms such as Payapps offer accurate and up-to-date information at your fingertips whenever you need it. Such visibility isn’t hidden away either – it’s offered to your entire supply chain too.

Sharing data and miscommunication have been long-term stumbling blocks for the industry, regularly appearing in posts around disputes and conflicts. But, by adopting technology, they can quickly become a memory of days gone.

Staggeringly, FMI found that 96% of all data goes unused in the Engineering and Construction industry. Whilst questions may get asked over how useful all this new information is, one thing isn’t debatable: uncertainty is removed through the transparency and visibility offered by digital platforms.

Improving collaboration, communication, and streamlining processes are at the heart of everything we do. And with the ability to integrate with industry-leading accounting systems, Payapps can become a single source of truth for any business in the construction industry.

For a real-world example of how Payapps works in practice, we recently spoke with some people who rely on our platform to run their construction payment operations. 

Theo Riakiotakis, Financial Controller at BW Interiors, recently said, “More detailed information is needed in the current climate in a bid to forecast future possibilities, so it’s good that we can interrogate Payapps to provide reports – and analysis – around subcontractor payments.”

Payapps

Organisations using Payapps have tapped into the single source of truth, with documentation stored in one easy-access location and accessible 24/7. The cloud-based solution encourages collaboration and communication, which keeps projects firmly on schedule.

Using Payapps, users can analyse past assessments, access real-time reports and understand the value of payment applications in progress.

By helping to remove risk and consolidate data, Payapps users typically become more efficient. Additionally, with a single source of truth in the palm of their hands, they can work smarter, not harder.

Join the growing number of companies that rely on Payapps and arrange a demo today.