New Research Reveals How Contractors Can Optimize Project Control Capabilities to Drive Reliable Budgets, Schedules and Profit Margins

Only 11% of contractors have the data integration, optimized processes and real-time visibility needed within their Project Control capabilities to achieve reliable project outcomes.

BOSTON--(BUSINESS WIRE)--The latest research from Dodge Construction Network and CMiC demonstrates that most contractors have not yet achieved the level of digital engagement, process standardization, access to real-time data and data integration necessary to achieve reliable budget, schedule and margin performance.

The findings, featured in the Optimizing Project Controls for Contractor SmartMarket Brief, examine the contractors’ use of digital tools, access to real-time data, process optimization and level of data integration for eight functions that fall under the umbrella of project controls: cost control and financial tracking; reporting and analysis; document and scope control; schedule management; cost planning; productivity and resource management; risk management; and quality control. Over 300 US contractors were included in the study, and their responses were converted into a maturity index for project control management.

59% of contractors are at the low end of the maturity scale, with few to none of these capabilities, and just 11% are at the high end. To qualify as highly mature in the current index, contractors only needed about half or more of the capabilities measured. “The findings reveal that the construction industry has currently only experienced the tip of the iceberg, in terms of the more reliable performance in schedule, cost and profit available from true data access and integration,” says Donna Laquidara-Carr, Industry Insights Research Director at Dodge Construction Network.

Higher Maturity Yields More Reliable Project Outcomes and Profit Margins
Contractors using advanced digital project control management software consistently see more reliable performance:

• Nearly all (91%) of contractors with high maturity complete their projects at or under budget, compared with 76% of those with low maturity.
• The more advanced contractors also deliver three quarters of their projects on schedule, while those less advanced have less than two-thirds of their projects delivered on schedule.
• Project margins are also more reliable: Only 11% of those with high maturity experience profit margin declines of more than 2%, compared with 16% of those with low maturity.

Better Outcomes Are the Result of Better Insights
Consistently, contractors leveraging robust digital tools report that they can identify issues and create forecasts better than their counterparts.

• Nearly half (47%) of contractors with high project control maturity identify potential cost overruns in time to address them, but only 24% of those with low maturity can do so.
• Over half (53%) can accurately forecast project costs, and three quarters (75%) can adjust their forecasts as circumstances change, far more than those with low maturity (40% and 17%, respectively).
• Over three quarters (78%) have the data they need to support decisions throughout the project, more than four times as many as those with low maturity (17%)
• Highly mature contractors are more than twice as likely to track finance, schedule, resource, quality, risk, safety, documentation and scope metrics than those at the low end of the maturity scale.

“We have seen the impact of connected project controls firsthand in our own customer base,” says Steve Cangiano, chief product officer at CMiC. “Firms using CMiC's project controls consistently report better visibility and fewer surprises on their projects, which is no coincidence given only 6% of contractors overall have a fully connected environment. It confirms why we continue to invest in this connected foundation as a core part of our product roadmap.”

The Brief includes a more complete description of the current use of project control features among contractors, more information about the maturity calculation, additional differentiators between more and less mature contractors, and an examination of the potential for AI to enhance project controls, and it is available for free download at www.construction.com/industry-research.

About Dodge Construction Network
Dodge Construction Network harnesses data, analytics, and industry connections to be the leading source of insights and opportunities in the commercial construction industry. With five trusted solutions – DCC, The Blue Book, Sweets, IMS, and Principia - Dodge connects construction professionals across all stages of the building process. Designed for both small teams and large enterprises, these tools simplify complexity, empowering you to build thriving businesses and communities. With over a century of experience, Dodge Construction Network is the catalyst for modern construction. To learn more, visit construction.com.

About CMiC
As an industry pioneer, CMiC delivers complete and unified Financials and Project Management software solutions for construction and capital projects firms. CMiC’s powerful software transforms how firms optimize productivity, minimize risk and drive growth by planning and managing all financials, projects, resources, and content assets—from a Single Database Platform™. With customers throughout North America and overseas, CMiC serves one-quarter of ENR’s Top 400 Contractors and hundreds of small and mid-sized construction firms, from general and specialty contractors to heavy/highway and project owners. Over $100 billion in construction revenue is handled by CMiC annually.