The construction industry today is facing more and more challenges than ever before. This includes increased complexity of projects, more costly projects, stricter rules and regulations and so on. Without effective resource allocation, these challenges may multiply, and AEC firms might fail to meet deadlines and milestones, leading to schedule and budget overruns.
Furthermore, if the problems with resource allocation in this industry are not resolved, it can lead to wastage of resources, sub-optimal utilization of resources, burnout, and high turnover. In a nutshell, if resource allocation is not done right, it can cause project delays and cost escalations, hampering business profitability.
However, with competent allocation, supervisors can ensure that the right workers are assigned to suitable projects based on skills, cost, availability and other critical parameters. Subsequently, it leads to the timely delivery of projects within budget without compromising the quality of deliverables.
This blog discusses various strategies for competent resource allocation within AEC projects and how Saviom’s advanced resource management software can help.
But first, let’s begin with the basics-
- Characteristics of the AEC industry
The integration of architecture, engineering, and construction (AEC) has advanced significantly in recent years. It represents the collaboration of architects, engineers, and construction professionals on residential or commercial projects to ensure their smooth completion.
Here are some key characteristics of the AEC industry–
- AEC projects are resource-driven. They necessitate a wide range of skills, from highly skilled architects to engineers and on-site construction workers.
- Each construction project is distinct and driven by geographical factors. For example, suppose two identical bridges will be built in two locations. In that case, the soil properties and characteristics, seasonal conditions, and so on will introduce variations in the project requirements.
- Construction workers’ employment patterns and working conditions differ from those in other industries. For example, construction workers in the field are not chosen for their academic potential but rather for their manual skills. Furthermore, they are frequently employed on an ad hoc basis and paid hourly wages, encouraging them to work long-term.
- Most AEC firms operate in silos, with departments continuing to function using independent software or spreadsheets. Furthermore, many businesses use outdated data processors and controllers to export and import data from their systems.
The following section provides best practices for ensuring competent resource allocation. So, let’s take a closer look.
- Strategies to allocate competent resources in AEC projects
Incompetent resource allocation can negatively impact the AEC project’s progress and profitability. Therefore, it is necessary to implement specific strategies to offset any challenges brought on by poor resource allocation in the AEC industry.
2.1 Create an accurate AEC project roadmap
One of the most critical steps in managing an engineering and construction project is developing a precise project roadmap. It emphasizes the project’s scope, objectives, milestones, and deliverables and serves as a point of reference for the team and stakeholders. It also predefines how the construction project will be monitored, controlled, carried out, and completed.
The plan also includes components such as costs, resources, timelines, and contingency plans based on the client’s expectations. This helps firms be better prepared to deal with unprecedented obstacles. This includes seasonal resource shortages, equipment breakdowns, labor disputes, delayed deliveries, and various associated uncertainties that can lead to incompetent allocation.
2.2 Estimate AEC resources for different projects
Evaluating and requesting AEC resources helps to lay the groundwork for strategic allocations required for project completion. It also helps avoid cost overruns, low profitability, negative client interactions, and project delays are unavoidable. Proactive and timely resource estimation enables AEC firms to ensure competent allocation.
It helps to determine the total number, type, and right mix of AEC resources, in advance and allows managers to identify qualified talent for respective projects. In addition, estimating the equipment specifications, such as facilities and materials, helps ensure its availability before the project’s onset.
2.3. Implement measures to fulfill skill shortages/gaps
A significant challenge for AEC firms is a severe labor shortage combined with an aging workforce. According to a recent survey, only 3% of young people want to work in the construction industry. Furthermore, the demand for niche skilled resources is growing due to changing customer expectations, rapid technological advancements, and increased competition.
As the existing talent pool is unfamiliar with the relevant tools and technology, the skills gap is widening dramatically. To combat these challenges, supervisors must anticipate future AEC project demand and assess excesses and shortages among construction workers. They must also implement upskilling or training programs or hire permanent or contingent workers if appropriate.
2.4 Identify the right resources and allocate accordingly
AEC resource managers need to ensure that the employee assigned to the project has the suitable skill set, competencies, and experience. Deploying lesser experienced AEC employees to a critical project will cause schedule overruns and burnout the junior resources. On the other hand, assigning a niche skilled AEC resource to a simple task leads to disengagement and demotivation.
Therefore, they need to filter out resources based on their selection criteria like project histories, experiences, safety training and certifications, skills, and competencies. This is to streamline competent resource allocation and deliver projects on time, within budget, and with stakeholders’ approval.
2.5. Avoid under/over-allocation of AEC workers
When an AEC worker is assigned to a task requiring skill sets or competencies beyond their capabilities, it leads to burnout. On the other hand, when employees are under-allocated, they will be disengaged as their skill set is not appropriately leveraged. Therefore, supervisors must implement various resource optimization techniques to prevent this situation.
For instance, managers can adjust the project timeline when a construction worker is overloaded with two or more projects beyond their competency. But if the workers are under-allocated, managers must ensure that the workload is distributed uniformly. The work assignments must also be tailored to their skills and interests. This will enhance their performance and productivity.
2.6 Facilitate effective bench management
The bulk of AEC projects experiences frequent ramp-up and ramp-down activities during the phases of initiation, pre-construction, construction, and closeout. For example, the management may hire many workers during the execution phase. However, as the project nears completion, these resources, such as construction workers and engineers, are released from projects and end up on the bench.
This can negatively impact profitability since benched resources do not bring revenue to the organization. Efficient bench management can help AEC firms proactively manage their bench size. Supervisors can forecast resources that will end up on the bench and allocate suitable work in advance. This can facilitate continuous productivity and high performance.
Now that it is clear let’s look at how resource management software can help the AEC industry.
- How advanced resource management software can streamline resource allocation in the AEC sector?
The AEC industry employs a large workforce. Therefore, firms must manage the talent pool efficiently to ensure business growth and profitability.
Saviom’s highly configurable resource management software offers AEC firms the following benefits:
- The tool provides enterprise-wide visibility into key resource metrics such as demand, capacity, and availability.
- Its capacity planning feature to track and analyze the AEC demand vs supply gap.
- Furthermore, real-time, BI-enabled reports like forecast vs actuals, people on the bench, and project vacancy help gain insight into resources that are likely to end up on the bench. As a result, the supervisor is better prepared to allocate workers to appropriate project tasks (from the project vacancies) beforehand.
All these features of the resource management tool facilitate the efficient allocation of AEC resources.
- Conclusion
“AEC is a growing global market expected to reach $10.5 trillion by 2023. Experts also expect it to grow at a compound annual growth rate of 4.2% between now and 2026.”
To aid this growth, AEC firms must learn to optimize their workforce and ensure competent resource allocation to ensure successful project delivery and client satisfaction. Implementing the above practices and the right resource management tool can help streamline the allocation process and boost workforce efficiency.