How asset management can help avoid scope creep

Scope creep is the tendency for a project to grow in scale and complexity due to unexpected reasons. There's a common misconception that scope creep only covers the direct changes made to a project - whether that's because the client changes their mind or because of a costly design error.

However, scope creep can also refer to any uncontrolled indirect challenges that have an impact on the successful completion of a project. These include unexpected downtime due to equipment failure or non-compliance, increase in the schedule of accommodation required or the duration of the project.

Scope creep is one of the biggest challenges within the construction sector and recent industry statistics reveal worrying results:

• Only 64% of construction projects meet their goals
• Organisations lose £77 million for every £70 billion investment they make
• The average cost overrun is 59%
• The average time overrun is 74%

In this blog, we'll look at the causes of scope creep within construction and give practical examples on how asset management can help minimise the impact.

Changes to the scope of projects - whether official, unofficial, documented or undocumented - are common within the construction sector. The reasons are countless, but the damage to construction firms could be exponential: increased liability, decreased profitability and damaged reputations standing at the forefront.

According to our customers, the 4 most common challenges are:

The two main goals that every project needs to achieve to be deemed successful are to be on time and within budget. However, this is rarely the case as construction companies worldwide often fall into the trap of going beyond the initially established project plan.

While unexpected project changes will certainly set you back, any other internal hiccups can be equally as destructive. Lack of proper communication between your teams and costly administrative errors can ruin a project as easily as a last-minute scope change.

When combined with technology, asset management can provide your administrators with a single platform to communicate with each part of the organisation - giving them full visibility and flexibility to keep operations and logistics running smoothly. Find out more about how asset management can help you reduce administrative costs in our blog here.

Losing money and going over budget is extremely common within the construction sector. Often, it’s the hidden costs that slowly add up until they spiral out of control.

Having an adequate asset management solution in place can help ensure that all your equipment and tools are logged and accounted for. ON!Track gives you complete clarity into what equipment you have, where it is, who's using it, and when it needs maintenance.

This will decrease the level of theft on your site, minimise downtime spent looking for tools and will allow you to meet compliance regulations by tracking certificates and maintenance dates. As a result, you won't overspend on already existing assets that aren't being utilised.

Stolen equipment, time wasted looking for assets that are missing, lacking visibility of inspection, maintenance schedules and staff certification due dates can all contribute to high project costs and time overruns.

Health and safety is also one of the biggest challenges that can cause major overspend due to failed equipment, unexpected downtime, or non-compliance penalties.

Asset management software can help tackle these issues through in-depth data management and actionable insights. You can analyse reports on asset utilisation and keep track of work orders, maintenance and inspection regimes - ensuring that your equipment is always up to date with regulatory requirements.

Effective communication streamlines workflows and makes projects a lot more efficient. With an asset management system, you’ll be able to minimise the impact of administrative errors and lost or stolen equipment, as well as being able to reduce costs and proactively manage projects so they're delivered on time.

To help you gain a better understanding on how asset management software can help improve your construction operations, download our free guide below.