How Home Builders Can Manage Diversified Building Projects
With rising interest rates, supply chain issues and equipment shortages, some Home Builders have found that diversification is a viable way to combat uncertainty. Instead of putting all their eggs in one basket, many Builders analyze steep declines in their current building segment and supplement projects and income with other services or project types. Understanding existing strengths and weaknesses and expanding business models is a great start, but diversification poses challenges. Using the right Home Builder software to track and manage every aspect of the construction process is a proven method for improving and streamlining processes, especially in new business segments.
Understanding Diversified Building Projects
It’s not uncommon for companies to start out as residential contractors and work their way into commercial projects. Since the pandemic, many Home Builders have strategically expanded to diversify income streams and mitigate risk. Two areas residential Builders have recently diversified into are single-family build-to-rent communities and modular homes. This type of housing provides more affordable options for people who are saving money for a down payment on a new home, or those not ready to be tied down to a longer-term purchase. With ongoing inflation and a looming recession, experts expect a growing number of Builders to diversify into these growing segments. Diversification might also mean taking on public and private jobs or branching out into remodeling or restoration. While diversifying operations can help Builders weather the storm of uncertainty, doing so isn’t easy.
Steps to Effectively Manage Projects
Diversification can help Builders ride out any downturn in the economy. With that said, specific steps need to be taken to manage projects effectively. The first step is to identify key stakeholders and establish clear lines of communication. After developing a comprehensive project plan and timeline, it’s essential to monitor progress regularly and make adjustments as needed. It’s equally important to prioritize safety and quality control measures. Managing materials, equipment, personnel and other resources effectively and promptly addressing any unexpected challenges or issues helps minimize project delays and maximize profits.
Best Practices for Project Management
Whether you build high-end new homes, single-family build-to-rent communities, modular homes, public or private apartment buildings or restructure, improve or rebuild existing dwellings, the same project management principles apply. Building project management has a clearly defined beginning and end point with constraints on time, resources, personnel, weather and many other factors. Following these best practices can help mitigate expected and unforeseen challenges:
● Foster collaboration and teamwork among project stakeholders
● Emphasize clear and consistent communication throughout the project cycle
● Use an ERP (Enterprise Resource Planning) construction management software to streamline processes and improve efficiency
● Offer robust services with the ability to sell in all of North America by supporting multi-currency and associated tax requirements
● Build a strong project management team with diverse skills
● Continuously evaluate and improve project management processes
Benefits and Features of Hyphen HomeFront With Sage Integration
Every stage of the build process comes with large volumes of interconnected information, including specifications, approvals, notifications and transactions. Hyphen HomeFront manages the entire building cycle in one streamlined software solution and works with Builders as they grow and diversify. It works seamlessly with popular Home Builder accounting software, including Sage and Sage Intacct with multicurrency capabilities to ensure immediate and accurate sharing of customer and cost information across all departments.
Select HomeFront Features
● Informative dashboards and analytics
● Real-time cash flow management and communication
● Streamlined purchase order handling, approvals and payments
● ERP solution proven to reduce cycle times
● Sage Intacct integration supports multi-currency and associated tax requirements
Manage Diversified Building Projects with Hyphen HomeFront
In the current, increasingly diversified and competitive residential construction market, how efficiently you run your business at every project stage has a huge impact on your ability to succeed. Diversification requires robust, timely and flexible reporting and real-time interactive dashboards. Hyphen HomeFront provides all of this and more to help you make timely business decisions, build efficiencies, eliminate costly mistakes and protect your profit margins.
To learn more about how Hyphen HomeFront with Sage integration can help you manage a growing number of diversified projects more effectively, schedule a demo today.
