January/February 2016 – CFMA Building Profits Magazine – B2W Software business analyst Jennifer Angrisano explores why a growing number of construction companies are adopting software-based maintenance management program, what those programs should include and some industry benchmarks for evaluating maintenance programs.
In heavy construction, very little is accomplished without equipment. Keeping increasingly sophisticated assets on the job, maximizing their lifespan, and minimizing the cost of ownership are critical to profitability and can command a substantial amount of a company’s budget.
Some companies with which I have worked were able to keep maintenance costs at about 5% of revenue, and I’ve also seen some spend 10% to 15% or more. For other contractors, maintenance is a “black hole.” Reactive approaches and a lack of standardized processes and controls make it difficult to calculate actual costs or make informed decisions.
With so much riding on maintenance and repairs and with the availability of advancing technology to assist in the process, companies might want to consider specialized maintenance management programs. This article will explore the benefits, key features, and potential pitfalls of such programs.