While the coronavirus (COVID-19) outbreak had an enormous impact on the economy, there was an industry that kept going strong—construction. However, as the country prepares to reopen, construction companies need to be able to stand out from the competition if they’re going to maximize the benefits of post-quarantine economic booms.
One tool that many construction companies can use to save money and win construction bids is telematics. How can data from telematics solutions help a construction fleet reduce costs and win bids without gouging into the company’s profits? How can your construction company use telematics data to increase operational efficiency?
Here’s a quick explanation of telematics for construction, and how you can use asset tracking solutions to improve operational efficiency.
How Can Construction Equipment Data Help Win Construction Bids?
One of the key uses of telematics solutions for a construction company is to track the use of construction equipment. With accurate data on things like fuel consumption, total use time, and maintenance performed, you can more accurately track your construction fleet expenses.
This can be crucial for winning construction contract bids. Being able to determine exactly how much your operations will cost is important for making a construction bid that is lean enough to edge out the competition without risking spending more than you would make on a job.
Additionally, telematics solutions can help you to cut costs and improve operational efficiency. This helps you stay on budget and on time—avoiding cost overruns and penalties for failing to complete a construction project before a deadline passes.
Ways to Use Telematics to Reduce Construction Costs
How does fleet telematics help construction companies reduce costs? Here are a few ways:
- Optimizing Maintenance Scheduling. Knowing how long each piece of construction equipment has been in operation and collecting vehicle diagnostic codes for any OBD-II port-enabled equipment in your company can go a long way towards improving your maintenance scheduling. Asset tracking telematics solutions can help you keep track of this information so you can schedule preventative maintenance that fixes small issues before they become big (and expensive) mechanical failures.
- Eliminating Wasteful Construction Equipment Use. Is heavy construction equipment being run in idle—wasting gas without contributing towards project completion? With telematics data, you can track if equipment is idling excessively and work to correct the behaviors that lead to such waste. This, in turn, helps reduce fuel costs for construction projects.
- Preventing Equipment Theft. Construction fleet vehicles and equipment can be massive targets for theft—especially if they’re left unattended on the job site. Using GPS tracking solutions, construction companies can reduce the risk of theft and improve their chances of recovering stolen vehicles and equipment if a theft does occur. Geofencing can be a particularly useful tool for preventing theft—setting a virtual fence around the site and triggering an immediate alert if a GPS-tagged asset crosses the threshold so you can react immediately.
- Optimizing Equipment Life Cycles. Replacing construction equipment and vehicles at the exact right time can be key for minimizing costs and maximizing ROI. With fleet telematics data, you can cycle out old equipment at the right time to maximize resale value while still getting the most useful life possible out of it.
Improving Operational Efficiency with Fleet Telematics
Operational efficiency can be a huge issue for construction companies. Being able to do jobs quickly not only helps minimize cost of labor, it can help win future contracts by improving your company’s reputation. Additionally, completing jobs fast allows construction companies to take on more contracts in a shorter timeframe—increasing earnings potential.
Telematics can help to improve operational efficiency for construction companies by:
- Streamlining Equipment Management. Asset management can be a time-consuming and difficult process. Retrieving construction equipment from the lot or identifying which pieces of equipment are ready to go or not takes a while. With asset tracking GPS, you can quickly identify where each asset is and retrieve it quickly.
- Improving Equipment Use Scheduling. Odds are that you’ll have several construction jobs lined up to run concurrently to make more efficient use of your tools and teams. Also, many jobs will likely hit points where work can’t continue until a specific piece of equipment finishes a task (like laying a concrete foundation, digging a ditch, spreading asphalt, etc.). With GPS tracking and other telematics solutions, you can optimize how your equipment is scheduled for use so they can move from one job site to the next quickly and efficiently—minimizing delays without requiring multiples of the same piece of heavy equipment.
- Increasing Construction Team Accountability. Make sure equipment is used responsibly and that construction crews are adhering to their schedules by using telematics to track when your employees arrive at the work site, when construction equipment is activated, and where vehicles are being used. This helps to increase accountability and keep employees on-task at the work site.
Being able to operate quickly and efficiently can be a huge differentiator for construction companies.
Are you ready to step up your operational efficiency and reduce costs? Reach out to the Rastrac team today to get started!
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