This new Dutch regulation will significantly alter building processes, liabilities, and duties. Hard labor is required to realize the relatively tiny profits in the construction industry (2-3 percent). If failure costs are calculated at 5%, you may imagine how much profit construction businesses can make if these expenses are reduced. This 5% is the outcome of an investigation conducted by the ABN AMBRO (Dutch bank), which found that 40% of companies estimate their failure costs to be 5% or more. This equates to €5 billion every year!
According to SBRCUNET, the following are the most common sources of failure costs:
* communication flaws
* time constraints
* insufficient skills
* uncontrolled process
Digitalisation in construction
A key finding is that most mistakes may be avoided by improved collaboration and communication. We now have better communication technologies, such as email, Whatsapp, and WeTransfer. Miscommunication is becoming more common as the number of communication channels used increases. We, the developers of the application Pointer, dare to assert that if everyone involved in the construction process gets the same information at all times and in all places, and communication is captured transparently, construction failure costs can be reduced.
Prevent failures with better communication
The Pointer application is THE tool for establishing this title. You can use the application to build on your (previous performance) reputation. Because you can demonstrate that your communication and teamwork are properly organized, the following tender can take advantage of your reputation. The vendor can assume that failure costs will be kept to a minimum during the project.
Please contact us if you would like to see a demonstration.
A demo is free!
Do you also want to minimize your failure costs? Try Pointer for your next project!