If there’s one thing that can make or break a construction project, it’s the assets you have or need to get the job done. If you’ve ever run into a delay or issue in completing the work because you didn’t have the right asset or didn’t keep up with its routine maintenance, you need to focus on your asset management. In order to build your asset management systems, you’ll need to create a foundation first and understand just how important it can be to your overall efficiency and success.
What is an asset and how do you manage it?
In the construction world, an asset can be any number of things, but it’s always a non-consumable tool or piece of equipment that your business relies on to get the job done. Some examples include:
- Company-use vehicles
- Heavy construction equipment
- Company-owned facilities
- General use & power tools
- On- and off-site computers
Asset management is the system and strategies you put in place to keep track of your assets and ensure they’re well-maintained and in working order. Whether this is done by hand with pen and paper or via a management software, knowing what’s going on with your assets is essential in construction.
The Benefits of Effective Asset Management
When you have an effective system in place to manage your assets, you and your crew gain a clear understanding of what you have and still need to get the job done. Managing your equipment helps avoid expensive rental costs, keeps projects on schedule, and gives you valuable data into the life cycle of your most used equipment. At the end of the day, proper asset management maximizes productivity and increases your return on investment, no matter the type of equipment your team is using.
Our 5 Essential Asset Management Tips
1. Create An Inventory of Your Assets
Before implementing any asset management systems, you’ll first need to create a comprehensive inventory of all the heavy equipment and machinery you have and their current maintenance statuses. If you’ve had a project delayed because you thought you had an asset available when it wasn’t, you need a better picture of your inventory. To properly run a construction operation, it’s important to understand what you have on hand at any given moment so you can avoid costly–and unnecessary–rentals.
2. Set Clear Accountability Expectations
Asset management may sound like a responsibility held by one manager or company owner, but it’s really shared between everyone involved. With your existing and new assets, you should set clear guidelines with your team so everyone understands who is responsible for equipment maintenance and upkeep, what you expect in the check-in and check-out procedures, and everything in between.
For example, with PassTime’s construction equipment tracking systems, you can monitor the location of your assets. This way, if something is misplaced or discussions between crew members get lost in translation, you have a system that can keep your team accountable and protect your equipment by knowing where everything is.
3. Monitor the Life & Maintenance of Your Assets
Every asset in construction has its own unique lifespan that is directly affected by the maintenance it receives. In asset management, you should keep track of how often each piece of equipment needs some sort of maintenance or repairs and the estimated amount of time you’ll get out of it before it’s time for replacement. With this, you can accurately predict when it’s time to invest in a new asset before you’re in the tricky position of not having something your current project needs.
4. Upgrade & Renew
When the time comes to replace an asset, you’ll need an intake system that brings your new equipment into the rotation quickly and efficiently. By having an initial inventory and knowing the life cycle of your current assets, you will be able to integrate your new addition into your management system and get your crew the equipment they need to get your projects done on time.
5. Adjust Your Strategy
As time goes on and your company grows or you notice hiccups in your processes, you can tweak your system to grow along with you. Whether you notice certain equipment not lasting as long as expected or issues with crew accountability, adjusting your strategy through regular audits or asset management meetings will keep your system scalable for whatever the future holds.
Make Asset Management Easier with Technology
Once you’ve tried managing your construction assets for a while, you’ll find that it can get very complex very quickly. Rather than using the old pen and paper method, you can use asset management software to manage your day-to-day activities and construction equipment tracking systems to monitor your equipment and mitigate loss and rental costs.
At PassTime, we offer GPS trackers for heavy equipment that give you the location and utilization data of all your assets so you can streamline your asset management and get back to delivering high-quality projects instead. If you’re ready to get the security you need to protect your construction assets, get in touch today for your custom quote.