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Why is Construction Resource Management Important?

July 19, 2024
7 min read

In a high-stakes industry like construction, efficient resource management can make or break a project. Without effective resource management, projects can face delays, cost overruns, and quality issues, leading to dissatisfied clients and stakeholders. In this article, we will explore the reasons why construction resource management is important and the benefits it can bring to your construction projects.

What is construction resource management?

Construction projects require resources like raw materials, equipment, and skilled workers. Construction resource management is the process of planning, managing, and tracking the use of these resources to meet construction project goals successfully. 
Additionally, project resource planning is essential for keeping projects on track and within budget. Construction or project managers are tasked with monitoring, allocating, and reallocating resources based on a construction project's needs. 

 

5 types of construction resources

In order to complete a construction project successfully, it is important to have access to the right resources. Let’s take a look at the five construction resource types:

  1. Raw materials: These include wood, cement, metals, brick, concrete, and clay, among others. It is important to note that cost and quality are important factors in selecting materials for a construction project.
  2. Equipment: Construction projects utilize heavy equipment, which is determined by the project cost estimate and duration. Examples of equipment commonly found on construction sites are bulldozers, excavators, cranes, and trenchers.
  3. Labor: This is your workforce and human resources on a construction site. They are considered the most valuable resources as they use other resources to execute the project. Types of labor on a construction site include estimators, architects, supervisors, quantity surveyors, engineers, and construction workers.
  4. Facilities: Facilities at construction sites are essential for the welfare and efficiency of the workforce. Examples of facilities are living accommodations, sanitary and toilet facilities, drinking water, changing rooms with lockers, and a canteen on site.
  5. Financial resources: Refers to the funds and assets used to finance a construction project. These resources are essential for purchasing materials, renting equipment, and paying the workforce, among other expenses.

     

Photo by Scott Graham from Unsplash

 

8 reasons why construction resource management is important

 

Have you ever wondered why construction resource management is such a crucial aspect of any project? Let’s take a look at its benefits below: 

1. Optimizes resource utilization

Effective management ensures that resources such as materials, equipment, and labor are used efficiently, minimizing waste and maximizing productivity. For instance, for a large-scale infrastructure project, such as building a highway, construction and project managers coordinate the delivery of materials when needed to minimize storage and reduce material waste. With construction resource management, they optimize the usage of heavy machinery like excavators and pavers, ensuring continuous operation and avoiding unnecessary downtime.


2. Helps with budget efficiency


Construction resource management is crucial for financial stability in a construction project. Not knowing how many resources a project needs can lead to allocating too much or too little to certain activities, resulting in double work, wasted time, delays, and added costs. Proper construction resource management can prevent these issues by closely tracking resource use and reallocating as needed to ensure time and money are well-spent.


3. Improves project quality and timeline

Construction resource management improves project quality and reduces the likelihood of rework or defects by ensuring that skilled labor is available and the right resources are used. Strict project timelines also require effective resource management to avoid costly delays. Resource shortages can lead to schedule disruptions, emphasizing the importance of detailed planning. 


4. Enables risk mitigation


Proactive resource management helps identify and mitigate risks such as material shortages, equipment breakdowns, labor shortages, or construction skills shortages. By managing risks promptly and using effective construction project management software, you can secure the necessary resources for your work and reduce the likelihood of project delays or disruptions.

5. Reduces material wastage


Following a strategic plan can help eliminate redundancy and resource over-purchasing, leading to more sustainable and profitable construction projects. Effective construction resource management is crucial for reducing excess material waste and avoiding financial and environmental issues. Innovative strategies in construction resource management help save resources and promote eco-friendly practices while also improving profitability. 


6. Improves productivity


Construction resource management ensures that team members are assigned appropriate tasks and have the necessary equipment, materials, and supplies. This helps teams be more productive by reducing downtime and ensuring they have what they need to do their best at the right time.


7. Helps you to be agile and adaptable in project scope changes


Changes in construction projects are common, affecting project dates and resource needs. Effective resource management helps construction managers see how changes impact their plans. Additionally, resource management software can highlight allocation issues caused by changes and provide availability records to find solutions when changes happen.


8. Increases visibility into your resources 


Construction resource management helps you track and monitor your resources more effectively. By closely monitoring resource utilization, you can always clearly understand what resources you have available. 
 

4 steps on creating an effective construction resources management

Creating an effective construction resources management plan involves systematically identifying, allocating, and tracking resources throughout the project lifecycle. Here are the steps you can follow:

  1. Develop a comprehensive project plan:
    1. Determine the project timeline and all associated activities.
    2. Identify milestones and key deliverables.
    3. Write a scope of work outlining project objectives and requirements.
    4. Assess resource requirements for each project task.
  2. Resource allocation and optimization:
    1. Estimate the costs of labor, materials, and equipment.
    2. Evaluate resource availability and consider reusability for future projects.
    3. Allocate resources according to project needs and budget constraints.
    4. Secure necessary approvals and authorization for resource planning.
  3. Utilize technology and software:
    1. Utilize specialized software for resource management and project tracking.
    2. Identify and assign responsibilities to team members for efficient execution.
  4. Keep track and conduct risk management measures:
    1. Continuously monitor resource utilization throughout the construction project lifecycle to ensure optimal allocation and identify potential bottlenecks or shortages.
    2. Review and analyze project progress regularly, optimizing the plan when necessary.
    3. Anticipate potential resource-related risks, such as material shortages or labor issues, and develop contingency plans to mitigate risks and minimize project disruptions.
       

Improve your construction resource management with BD+C


With the complexities and demands of the construction industry, ensuring that your resources are being utilized effectively can be challenging. That's why construction resource management is important to help you streamline your resource management process.
With BD+C, you can optimize your construction processes and maximize your resources, leading to improved project outcomes and increased profitability. Subscribe to our newsletter today and explore unlimited access to our comprehensive solutions and expert guidance on anything building, design, and construction! 

 

FAQs about construction resources management


As you ease your way through adapting construction resource management in your construction projects, there are commonly asked questions about the concept you should know. Below are some of them :


What does construction resource management include?


Construction resource management includes the processes to identify, acquire, and manage the resources needed to complete the construction project successfully. These processes help ensure that the right resources will be available to the construction manager and project team at the right time and place.


What is the difference between resource management in construction and construction workforce management?


Resource Management in Construction involves planning all important resources for project success. Conversely, construction workforce management involves managing human resources to ensure project success.


How to manage a construction project with limited resources?

Managing construction projects with limited resources requires strategic planning and adaptability, especially in remote areas. Tasks should be prioritized based on their impact, and local materials should be used to lower costs. It is important to be flexible and prepared to adjust plans as conditions change.

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