By John Chaney, co-founder, Dexter + Chaney

Once collaboration becomes reality, construction productivity will significantly improve, as project information will be easily available to all participants.

Two things can be said of economic downturns in the construction industry. First, a recovery that follows has roughly the same duration as the downturn itself, and brings the industry close to the level of growth it experienced prior to the downturn.

It’s an old saying: “Cash is king.” More than ever, this saying is relevant to contractors as margins continue to tighten and the amount of work generated by new construction continues to remain relatively flat. Negative cash flow is the No. 1 reason why contractor businesses become insolvent, and so a primary business objective must be to keep operations in the black.

Business management software is one of the most difficult investments to make for your business. Here are some guidelines that can help decide when to make a change in the way you handle business information and communication in your company-in other words, when it may make sense to look at new software and what you should look for.

The FMI/CMAA 11th Annual Owners Survey was conducted in an atmosphere of considerable disagreement over whether the national economy is recovering and if so, how quickly. A major federal infusion of stimulus funding in 2009-2010 was meant to soften the impact of the recession, as well as accelerate the recovery through investment in infrastructure and other resources. Fear of a double-dip recession exists while talk of further stimulus spending, specifically for infrastructure, is inciting optimism. We can assume the construction economy will recover eventually - perhaps this year, perhaps next. But what then? What fundamental things will have changed in our business that will not "get back to normal?".

Challenge: Find accounting software that can be implemented quickly, facilitates project management processes and increases efficiency of key accounting processes.

Solution: Implemented Spectrum® Construction Software with fully integrated Document Imaging across Accounts Payable and Project Management modules.

Result: Elimination of paper files and increased control over project management with the ability to track change orders and job costs.

This article was submitted by Tom Frisby of The Frisby Group.
As a dispute resolution consultant (www.frisbygroup.org), I have found that effective daily reports have been more important than, to tell you the truth, after the fact forensic schedules and expert witnesses.  Daily reports are done in "real time" and if properly done, carry real credibility - I call daily documentation a Living, Unimpeachable Witness.  To be properly done: