How the Construction Industry Can Budget & Manage IT Expenses
The construction industry has come a long way in adopting technology, from project management tools to 3D modeling software. However, managing IT expenses in construction companies can be a challenge, especially with the complex and dynamic nature of construction projects. In this blog, we will discuss some best practices
that construction companies can use to budget & manage IT expenses efficiently.
Best Practices for Budgeting Construction-related IT Expenses
Identify Business Needs: Before creating an IT budget, it's essential to understand the company's overall business needs. Identify the critical IT infrastructure required to meet these needs and create a list of all necessary hardware, software, and services.
Prioritize IT Expenses: Once the business needs have been identified, prioritize IT expenses based on their importance. For example, if the company's project management system is a significant source of efficiency, prioritize expenses related to its maintenance, security, and upgrades.
Create a Budget Template: Create a budget template to track all IT expenses. The template should include categories such as hardware, software, services, maintenance, and upgrades. Assign a budget for each category and track expenses against the budget throughout the year.
Consider Long-term Investments: Construction companies should consider long-term investments when budgeting for IT expenses. For example, investing in drones or 3D modeling software may have a high initial cost but can provide long-term benefits such as increased accuracy and efficiency.
Review and Adjust: Review IT expenses regularly, and adjust the budget as necessary. It's important to stay flexible and make changes as needed to ensure that the company's IT needs are being met.
Real-life Examples on how the Construction Industry Can Budget & Manage IT Expenses
Let's take a look at two construction companies and how they managed their construction-related IT expenses using the best practices mentioned above.
Example 1: ABC Construction
ABC Construction is a small construction company that specializes in residential remodeling. They rely heavily on their project management system to manage projects efficiently.
To budget and manage their construction-related IT expenses, ABC Construction followed these steps:
Identified Business Needs: ABC Construction identified that they needed a reliable project management system, construction management software, and hardware for their team.
Prioritized IT Expenses: The most important IT expense for ABC Construction was their project management system. They allocated a higher budget for the system than other IT expenses.
Created a Budget Template: ABC Construction created a budget template that included categories for project management software, construction management software, hardware, software licensing, and maintenance.
Considered Long-term Investments: ABC Construction invested in 3D modeling software to improve the accuracy of their designs and increase efficiency in the field.
Reviewed and Adjusted: ABC Construction reviewed their IT expenses quarterly and adjusted their budget as necessary.
Example 2: XYZ Construction
XYZ Construction is a large construction company that works on large commercial projects. They have a diverse range of IT needs, including project management software, collaboration tools, and hardware for their team.
To budget and manage their construction-related IT expenses, XYZ Construction followed these steps:
Identified Business Needs: XYZ Construction identified that they needed a reliable project management system, collaboration tools, and hardware for their team.
Prioritized IT Expenses: The most important IT expense for XYZ Construction was their project management system. They allocated a higher budget for the system than other IT expenses.
Created a Budget Template: XYZ Construction created a budget template that included categories for project management software, collaboration tools, hardware, software licensing, and maintenance.
Considered Long-term Investments: XYZ Construction invested in drones to improve safety and accuracy on job sites and reduce costs.
Reviewed and Adjusted: XYZ Construction reviewed their IT expenses monthly and adjusted their budget as necessary.
About the Author:
Jennifer Foth is the Marketing Director for Applied Integration, a Managed IT Service Provider in Salt Lake City. A mother of two and an Aussiedoodle dog-owner, Jennifer loves to cook, go camping and do DIY projects around the house in her spare time. With over 15 years of marketing experience, she's been with Applied Integration for 5 years and has helped grow the company into what it is today. Funny and witty, Jennifer is a joy to be around and always brings a smile to people's faces.
About Applied Integration:
Applied Integration is a Managed IT Service company that has been providing critical IT solutions and computer support to small businesses for over 30 years. Our founder has a unique understanding of the demands of the business environment and has developed the processes and IT solutions that are critical to keeping businesses like yours running. Partnering with Applied Integration is all about finding the right fit - we're fun, professional, and focused on meeting your specific needs. Let us show you how our experience and expertise can benefit your business.