RedTeam, a collaboration platform for commercial contractors, announces its new ROI calculator tool to help companies estimate and measure the value of construction technologies. The new tool furthers RedTeam’s commitment to servicing the construction industry by helping companies understand how benefits may be realized through the adoption of technology.
Project delays caused by COVID-19 have given many general contractors the time to reevaluate their businesses and determine which workflows can be optimized. One of the biggest considerations is the adoption of new software—and understanding which software is worth the investment is critical. While most GCs have a clear picture of the general benefits of their technology options, there was no easy way to determine how these benefits will translate into their specific operations.
RedTeam’s new ROI calculator allows GCs to quickly determine the value of a new technology for their specific needs. The calculator takes the benefit (financial value created by the technology being used) divided by investment (the total cost of buying, implementing, and maintaining the software) to find the ROI, or total net value created. Benefits are measured in four categories:
- Labor Savings: Doing the same amount of work and doing it with less people, reducing overall labor costs
- Productivity Gain: Uses a method based on applying weighted per hour productivity calculation using average revenue per employee multiplied by gross profit hourly wage
- Workplace Benefits: With stronger controls and workflows, businesses have less conflicts and are able to run more smoothly, reducing stress and helping to retain employees
- Risk Mitigation: Technology helps to lower company exposure to costs associated with project disputes
“While many GCs are interested in exploring options for a technology software and have a sense that there are clear benefits to adopting the right technology for their business, the value created from the use of software is not always easy to measure,” says Frédéric Guitton, chief strategy officer at RedTeam Software. “When you evaluate technology, there are a lot of variables to consider that are not always apparent. With our ROI calculator, we help assess those variables to ensure you are getting the most accurate sense of the return on investment you feel is attainable for your business.”
The ROI calculator is located on RedTeam’s website for free download. Companies can simply download the spreadsheet and input their specific structure and estimated impact to help optimize operations and profitability. To download the ROI calculator, visit www.redteam.com/roi-calculator/.
Modern Contractor Solutions, May 2020
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