Construction Resource Management: 6 Step Process & Benefits
Effective resource management is crucial in the construction industry, where projects often face delays and profitability issues.
Properly managing resources can alleviate these common pain points, ensuring project objectives are met, and projects stay on track and within budget. Here’s how to optimize the use of materials, labor, equipment, and time to execute your construction projects more efficiently and cost-effectively.
What Is Construction Resource Management?
Construction resource management involves planning, allocating, and overseeing the resources required for a construction project. These resources include materials, labor, budget, time, and equipment.
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It provides a system for optimal utilization of resources, reducing waste, and increasing efficiency so you can achieve project goals, enhance overall project performance, and boost profitability.
Types of Construction Resources
Here are the different types of resources that need to be managed on construction projects.
Materials
These are your essential building supplies such as concrete, steel, and wood. Ensuring timely delivery to construction sites and adequate quality control is vital. Materials management involves procurement, handling, and storage, which directly impact the project timeline and budget.
For example, ordering high-quality materials in bulk can lead to cost savings and reduce the risk of project delays due to material shortages.
People
This includes skilled laborers, project managers, and subcontractors. Effective scheduling, allocation, and management of these contractors is crucial.
Labor management involves hiring, training, and deploying workers based on project requirements. Efficient labor management ensures that the right people are available at the right time, which is essential for maintaining project momentum and meeting deadlines.
Budget
Your budget is the financial resources required for the project. Proper budgeting and cost control prevent financial overruns. Budget management involves estimating costs, securing funding, and monitoring expenses throughout the project. Accurate budget management helps with identifying potential financial risks early and allows for timely interventions to keep the project within budget.
Time
Creating a comprehensive project timeline and efficiently managing your team's time ensures that project milestones will be met. Time management involves creating detailed project schedules, setting realistic deadlines, and monitoring progress.
Effective time management helps to minimize delays and ensures that the project is completed on time, which is crucial for maintaining client satisfaction and profitability.
Equipment
This is the machinery and tools needed for construction. Ensuring availability and maintenance of this equipment is key to preventing delays.
Equipment management (which you can use resource management software for) involves procuring, maintaining, and scheduling the use of machinery. Proper equipment management ensures that the necessary tools are available when needed, reducing downtime and improving overall project efficiency.
Construction Resource Management Process
Effective resource management involves several steps.
1. Complete a Material Takeoff Analysis
This step involves identifying and quantifying all materials required for the project. A thorough analysis can help you create an accurate budget and make sure that all necessary materials are procured.
A material takeoff analysis involves closely examining the project plans and specifications to determine the quantities of each material needed. This step is crucial for preventing material shortages and ensuring that the project progresses smoothly.
2. Determine Scope & Required Resources
In this step, you'll define the project scope and identify the resources needed. This includes estimating the amount of labor, materials, equipment, and time required. Consider creating a resource breakdown structure (RBS) to ensure no critical resources are overlooked and to align resource needs with project scope.
Determining the scope involves understanding the project requirements and objectives, which will help you accurately estimate the resources needed (you can also use AI estimating software, which can reduce some of the manual effort of this process). Having a clear definition of project scope also ensures that all stakeholders have a common understanding of project goals and deliverables.
3. Review Availability of Resources
Assess the availability of required resources by checking the schedules of your people, looking into sourcing materials, and ensuring equipment can be accessed when needed.
Reviewing resource availability can help you identify potential constraints and plan ahead for any shortages or delays. This step ensures that the project has the necessary resources to proceed without interruptions.
4. Schedule Resources
Develop a detailed schedule that outlines when and where resources will be used on the construction project and construction site. This helps to prevent project bottlenecks and ensures a smooth workflow.
Resource scheduling involves creating a timeline for the use of labor, materials, and equipment, and coordinating these elements to avoid conflicts. Effective resource scheduling ensures that the project progresses according to plan and helps to minimize delays. Using construction workflow software can simplify this process by providing tools for automated scheduling and conflict resolution, ensuring all resources are utilized efficiently.
5. Track Utilization
Monitor the utilization of resources throughout the project. This includes tracking labor hours, material usage, and equipment operation.
Tracking resource utilization rate can help you identify areas where resources may be under- or over-utilized, allowing for adjustments to optimize resource use. This step is essential for maintaining project efficiency and preventing waste.
6. Review & Adjust As Needed
Regularly review your resource allocation and make adjustments as necessary. Reviewing and adjusting resource allocation involves continuous monitoring of project progress and making changes to resource plans as needed (which is made easier with these resource planning templates). This ensures that any issues are addressed promptly and resources are used effectively.
Benefits of Construction Resource Management
Effective resource management is important for several reasons:
1. Increased Efficiency
By properly allocating and scheduling resources, you can ensure that work progresses smoothly and without delays. You’ll minimize downtime and maximize productivity, leading to higher project completion rates.
You’ll coordinate labor, materials, and equipment, to reduce the likelihood of bottlenecks. This systematic approach not only accelerates project timelines but also enhances the ability to meet critical milestones, ensuring that the project remains on track.
2. Cost Savings
Effective construction resource management helps minimize waste and cost overruns, leading to significant savings. This might include specific reductions in material waste, minimized labor costs, and less equipment downtime.
Additionally, strategic resource management can help you uncover opportunities for bulk purchasing or negotiating better rates with suppliers, further reducing expenses. The more you can accurately forecast resource needs, the better you’ll be able to plan your finances and have control throughout the project life cycle.
3. Improved Quality
Ensuring the right resources are available at the right time enhances the quality of the construction work. Proper resource management helps in maintaining high standards of workmanship and ensures that the project meets or exceeds client expectations.
With the necessary tools, materials, and skilled labor in place, you can focus on delivering high-quality results without cutting corners.
4. Better Risk Management
You’ll be able to better anticipate potential issues, reducing delays and budget overruns. By closely monitoring resource allocation and utilization, project managers can quickly adapt to changes and unforeseen challenges.
This agility in handling risks safeguards the project’s timeline and budget, and enhances the resilience of the project team, enabling them to navigate complexities with confidence.
5. Enhanced Collaboration
By ensuring that all team members have a clear understanding of resource requirements and availability, you’ll get the team working together better.
Create a system for using construction resource management tools to facilitate information sharing and coordination. This will reduce misunderstandings and get the team more aligned with each other, encouraging innovation and problem-solving.
6. Greater Client Satisfaction
Construction resource management helps you deliver projects on time and within budget, which ultimately boosts client satisfaction. Satisfied clients are more likely to provide repeat business and refer new clients, contributing to the long-term success of your construction company. A history of successful projects strengthens your portfolio, attracting new business.
Common Challenges in Construction Resource Management
1. Resource Scarcity
Limited availability of skilled labor or materials can delay construction projects and quickly increase costs. To address this, build strong relationships with suppliers and subcontractors and keep exploring alternative resource options.
You’ll also need to negotiate long-term contracts and maintain a buffer stock of critical materials. Keep up to date with market trends, supply chain issues, and potential shortages to anticipate and manage scarcity more effectively.
2. Coordination Complexity
Coordinating resources and schedules, especially when you have to manage multiple projects at the same time, is complex and time-consuming.
Integrate your resource plans with project schedules as soon as possible, ensure that all team members are aligned with project goals, and keep in constant communication with your team and other project stakeholders.
Resource management software can help with coordination by providing real-time updates and visibility into resource allocations.
3. Unforeseen Changes
Unexpected changes in construction project scope, weather conditions, or other factors can impact resource availability and allocation. Build flexibility into your resource planning process and be prepared to adjust allocations as needed. Monitor your resource plan on a regular basis and keep an eye out for issues before they become big problems down the line.
A robust risk management strategy can help you anticipate potential changes and develop mitigation plans. Foster a culture of adaptability within the project team so everyone is ready to pivot and respond to changes swiftly with minimal disruptions.
4. Technological Challenges
You also might run into issues onboarding your team or scaling with resource management software. Choose a user-friendly software solution and provide training and support to your team. Invest in ongoing technical support and updates to prevent potential issues and keep the technology running smoothly.
Software for Construction Resource Management
Construction project management software is designed to help in planning, scheduling, and tracking resources efficiently. Resource management tools have plenty of benefits for your projects, and can integrate various functions that are essential for managing construction projects, such as resource allocation, progress tracking, and real-time collaboration.
If you're managing roofing crews or planning re-roofing projects across multiple sites, you might benefit from using dedicated roofing project management software. These tools are designed to help with scheduling roof inspections, tracking materials like shingles or sealants, managing subcontractors, and coordinating safety compliance across residential or commercial roofing jobs.
Here’s a list of the best online construction project management software.
If you need more options, here’s a few more of my top picks.
- Procore: Procore is a comprehensive construction management platform that offers resource management capabilities and AI tools for construction project management. It enables project managers to allocate resources effectively, track progress, and collaborate in real-time with team members and stakeholders. It's also one of many construction project management software tools that work with Xero, if you need to integrate with your existing accounting tools.
- Buildertrend: Buildertrend is another popular construction management tool that focuses on streamlining the resource management process. It offers features such as scheduling, budgeting, and communication tools that help project managers stay on top of resource allocation and usage.
- PlanGrid: PlanGrid is known for its ease of use and powerful resource management features. It allows project managers to track resources, manage schedules, and collaborate with team members through a cloud-based platform.
- CoConstruct: CoConstruct is a cloud-based construction management tool that offers robust resource management features. It includes mobile access, allowing project managers and team members to update and view information from anywhere.
- Fieldwire: Fieldwire focuses on enhancing field operations with powerful resource management tools. It allows project managers to assign tasks, track progress, and manage resources through a user-friendly interface. It's also a great pick for restoration project management software, if your org specializes in that area.
- Raken: Raken is designed to simplify construction management with features that support resource tracking, daily reporting, and task management. Its mobile-friendly platform allows for real-time updates and collaboration, ensuring that resource allocation is accurate and efficient.
If you're looking for ways to improve collaboration, it's worth looking into construction collaboration software as well.
What’s Next?
Think of the resource management process as the foundation upon which great construction projects are built. It's about more than just keeping track of materials and labor; it's about orchestrating all moving parts in harmony to create something remarkable. When managed well, resources transform from mere inputs into the backbone of a project that stands tall against the test of time.
So, as you embark on your next construction project, remember that resource management isn't just a process: it's a mindset. It's about thinking ahead, staying flexible, and continuously striving for excellence.
Eager for more? Check out best courses to level-up your construction project management skills. Want to connect with other project managers to share resources and best practices? Join our membership community and get access to 100+ templates, samples, and examples and connect with 100s of other digital project managers in Slack.
