How Accurate Reporting Can Prevent Construction Delays and Save You Money

Running a construction company comes with many challenges beyond market competition, but one of the most stressful issues is construction delays. Not only do delays slow down your work, but they also lead to unexpected costs.

According to a study by McKinsey, 98% of large construction projects face delays or cost overruns, with an average delay of 20 months. Budget overruns can increase by as much as 80%, placing significant financial strain on construction companies.

Consider your most recent construction project—was it delayed due to late material delivery, miscommunication among teams, or inaccurate financial records? More often than not, poor reporting is the hidden cause of these problems.

Imagine having a system that tracks your construction budget, provides real-time reporting tools, and generates automated reports, giving you the power to make smarter decisions before small problems turn into big ones. This is where INTERAC Construction Accounting Software provides a game-changing advantage.

What Are the Consequences of Construction Delays?

Before we explore the solution, let’s take a closer look at what you risk when a project gets delayed:

1. Financial Losses That Add Up Quickly: If a project is behind schedule, your company is likely losing money. Research shows that a 30% delay can lead to additional costs of up to $15 million. Here’s how:
   
   • Increased Labor Costs: The longer the project takes, the more you pay workers for extra time.
     
   • Higher Material Prices: Material costs can increase, especially if delays force you to purchase at higher prices.
     
   • Contract Penalties: Missing deadlines often results in costly penalties.
     
   • Lost Future Business: Delays can hurt your reputation, leading to clients taking their business elsewhere.
     
2. Project Mismanagement and Lack of Transparency: Construction projects involve multiple teams—architects, engineers, suppliers, and contractors. Without a central system to track budgets, spending, and progress, small mistakes can snowball into costly problems.
   
   A project manager might assume everything is fine, only to realize much later that labor costs have exceeded the budget. By then, it’s too late to fix the problem without additional expenses.
   
3. Disrupted Cash Flow and Unpredictable Expenses: Delays cause revenue to stall while costs continue to rise. This can put pressure on your cash flow, and you may even need to take out high-interest loans to keep the business running.
   

Common Challenges in Construction Project Management

Construction companies face unique hurdles in project management that can lead to delays. Some of the most common problems include:

• Lack of Real-Time Financial Visibility: Many companies rely on outdated reports that don’t give an up-to-date view of project costs.
  
• Budget Overruns Due to Poor Tracking: Without automated reports, it’s difficult to spot financial issues until it’s too late.
  
• Inefficient Communication Among Stakeholders: Misunderstandings can arise when project managers, accountants, and field teams aren’t all working with the same data.
  
• Inconsistent Documentation for Compliance: Failing to track and store financial data properly can lead to legal issues and penalties.
  

How INTERAC Construction Accounting Software Can Solve These Challenges

Imagine having a tool that provides real-time financial insights, accurate reporting, and automated budget tracking all in one place. That’s exactly what INTERAC offers. Here’s how it helps:

1. Job Cost Management – Full Control Over Project Costs Traditional methods of tracking costs, like spreadsheets, often don’t provide a clear picture of your finances. INTERAC’s Job Cost Management module gives you:
   
   • Complete Cost Visibility: You can monitor your project’s financial status anytime with data from all related modules.
     
   • Integrated Tools for Better Tracking: Using tools like Job Manager, Equipment Manager, Report Manager, and Document Management System, you get a comprehensive view of your finances.
     
   • Prevention of Overspending: Track expenses in real-time to catch budget overruns early and address them before they grow.
     

Example: If a subcontractor provides an unexpected invoice, INTERAC lets you compare it to your estimated expenses and make corrections before it impacts your budget.

2. Real-Time Financial Insights – Make Faster, Smarter Decisions Waiting for end-of-month financial reports leads to delays. INTERAC gives you instant access to financial data, enabling quick decision-making:
   
   • Real-Time Data Access: View critical financial information instantly without risk of unauthorized changes.
     
   • Drill-Down Capabilities: Analyze transactions in detail to spot trends and resolve issues before they escalate.
     
   • Proactive Issue Resolution: With up-to-date insights, you can fix financial bottlenecks right away.
     

Stat Alert: McKinsey found that poor project data and miscommunication account for 48% of rework costs in construction. INTERAC eliminates these inefficiencies with real-time, accurate data.

3. Easy Accounting Integration – Automate Payments and Stay Compliant Managing construction accounting involves more than just paying invoices. You also have to handle subcontractor payments, payroll, and lien waivers. Small mistakes can lead to delays and legal issues. INTERAC simplifies this by:
   
   • Seamless Accounting Integration: Automatically links job details to accounting to eliminate data entry errors.
     
   • Automated Lien Waivers: Ensure compliance with contract terms and regulations.
     
   • Supports Multiple Payroll Types: Easily manage union and certified payrolls – such as those required for government funded projects.
     

Example: Instead of manually tracking subcontractor payments, INTERAC automatically aligns job costs with payments, ensuring everything matches the project’s budget.

4. Equipment and Inventory Management – Prevent Downtime and Material Shortages In construction, inventory management is key. INTERAC helps prevent costly downtime with:
   
   • Equipment Tracking: Monitor equipment costs, maintenance, and usage to avoid unexpected breakdowns.
     
   • Real-Time Inventory Management: Track materials and manage multiple warehouses or service vehicles to prevent shortages.
     
   • Improved Cost Recovery: Properly bill equipment usage to specific projects, optimizing your costs.
     

Example: A construction company using INTERAC avoided a week-long delay by catching an impending equipment failure early and scheduling maintenance in time.

5. Document Management System – Speed Up Approvals and Eliminate Paper Clutter Construction companies deal with massive amounts of paperwork. Searching for documents wastes time and increases the chance of errors. INTERAC’s Document Management System:
   
   • Instant Access to Documents: No more sifting through piles of paper—everything is stored digitally.
     
   • Secure Storage & Easy Retrieval: Speed up approvals and audits with quick access to the right documents.
     
   • Automatic Linking to Projects and Financial Records: Save time by automatically linking documents to the right files.
     

Stat Alert: The Construction Financial Management Association (CFMA) found that construction firms spend 35% of their time searching for project-related documents. INTERAC cuts this time dramatically.

The Advantage of Accurate Reporting: How INTERAC Saves You Money

Construction companies using INTERAC have reported measurable improvements:

• 20% Reduction in Project Delays: Real-time tracking helps prevent delays by enabling quick corrections.
  
• 15% Cost Savings: Automated budget tracking reduces wasteful spending.
  
• Stronger Client Relationships: Delivering projects on time and within budget leads to satisfied clients and repeat business.
  

Why Construction Companies Trust INTERAC

• Built Specifically for Construction: Unlike generic software, INTERAC is tailored to the needs of contractors, builders, and developers.
  
• User-Friendly and Easy to Integrate: No complicated setup—INTERAC seamlessly integrates with your current processes.
  
• Proven Track Record: Trusted by construction companies for over 40 years, INTERAC helps businesses increase profitability and efficiency.
  

Take Control of Your Project’s Financial Future

Construction delays are costly, but with INTERAC Construction Accounting Software, you can track expenses, avoid budget overruns, and deliver projects on time. Ready to stop losing money to delays and mismanagement? Book a demo today and see how INTERAC can transform your construction business!