Why Owners should invest in Avvir’s Progress 5D

As an owner, you accept the financial risk of a construction project. When you hire a team to construct the project, your instinct may be to go hands-off. The nitty-gritty of construction is not where your expertise lies, and you would prefer to focus on your strengths. Despite the desire to step back and let the team handle construction (let them earn their pay), issues will arise during construction that impacts the bottom line. An upfront investment in technology can help you ensure money is spent wisely before and during construction. Avvir’s 5D Progress Tracking helps projects stay on schedule and budget, making it a wise investment for owners.

You’ve made it to Construction, Now what?

Getting a significant construction project off the ground is a mammoth undertaking. Conception, design financing, permitting, etc. - each of these steps is time-consuming and laden with potential pitfalls. While everyone is excited to get to the construction part of the process, a project’s success is largely determined in the planning phase. Careful, formal planning is invaluable and keeps a project moving forward as envisioned.

After you’ve successfully navigated these steps, including the planning phase, and have a team ready to go, it’s time for construction. Roll the dozers and the cranes.

Owners, in theory, can take a half step back during construction, but there are still many things they are responsible for. The way these things are handled impacts the timing and cost of the project, as well as your reputation.

‍

Every month, general contractors ask owners to review 100+ page documents to substantiate payment claims. Typically, architects and engineers review and certify the payments, but managing cash flow is up to the owner. Rather than relying solely on the team, you can actively engage in the process and feel confident approving payment applications. No one is as careful with your money as you are.

Manage your costs

Labor costs and many construction materials are significantly higher than just a few years ago. Interest rates are at their highest level since 2001, and the Fed notes more increases are coming. Hence, financing costs are also much steeper than in the recent past. Therefore, do you want to spend money on technology to do something new? On the flip side, rising costs make each dollar spent more precious.

With Avvir’s Progress 5D, you can uncover cash flow and budget risks and save money. How so?

The need for speed

Avvir’s 5D allows you to review the progress of your project within the context of capital. With the technology, you can visualize your integrated schedule of values and BIM in the same space. By pairing reality capture with an enriched BIM, Avvir can quantify earned value, which can act as an objective source of backup documentation and quickly validate an invoice.

Note, this is done quickly. How often have you considered validating each invoice before deciding against it when you realized how long the endeavor would take? It’s easier to simply validate and focus on other meaningful yet less daunting tasks. Avvir’s Progress 5D simplifies the task, so you can stay on top of things without getting bogged down and neglecting other important matters.

You may be old school and carefully manage cash flow and approve payment applications sans technology. If so, you know this task is a time suck. Yet, it’s important to do this chore promptly.

Most countries have instituted laws that seek to protect the parties seeking payment. In the US, for example, the prompt payment act requires government agencies to pay the prime contractor on a construction project no later than 14 days after receiving an invoice for a progress payment. If delayed, this can result in liens which negatively impact your credit and various landlord/tenant relationships. These 14 days can go by quickly when you account for the time required to review, certify, and issue a payment transaction. 

Get the most out of the team

As an owner, you know construction projects often end up in litigation. The reasons vary, but many suits boil down to time and money. By smoothing out the process, litigation is less likely. Progress 5D tends to reduce the friction around the payment process and create an environment that allows for more transparency. This leads to a better and more professional work environment.

When payments, etc., are handled professionally and timely, instead of being disgruntled, the team is more likely to be content, active, and work together in a complimentary manner. The positive atmosphere and good communication result in a better project. It also means no litigation. Team members and others will want to work with you again.  

Be on the frontlines

As an owner, you're intimately involved with a project from day one. Your connection may continue post-construction. You're uniquely positioned to help steer the project and the construction industry toward adopting new technology. In the past, the construction industry was averse to change, but more and more players are adapting technology into their daily routines. The benefits are too great, so those who refuse to adapt are left behind.

By prescribing required workflows in the contract documents, owners can expedite technology adoption. You’re likely already capturing the data necessary to increase project transparency and use Avvir’s Progress 5D. So, there’s no need to dramatically add to your (or the team’s) standard tasks. All you need to do is start putting that data to work and increase ROI.

That’s a good investment for every owner. Click here to learn more about Progress 5D.

‍