Effects of Equipment Management to Increase of Project Profitability

The construction industry unlike other industries has always taken the back seat as far as technological inclusions and digitization are concerned but on the other hand, construction complexity only grows more each passing year, if not each quarter.

As these complexities increase and timelines get tighter, the management of resources becomes increasingly important. Construction equipment budget has a giant share on total project budget and that makes equipments one of the most valuable assets on project. As most of the processes in the construction industry heavily rely on equipment and machinery, it becomes a nuisance when the equipment or machinery breakdowns as it will disrupt the whole construction cycle and the scheduled work-flow of the entire crew. These items, equipments or machines are not only expensive to purchase but also to maintain.

Failure of equipment has a domino effect on projects, leading to downtime, additional expenses, and frustrated owners. The dysfunction of even single equipment can make a project standstill while the downtime costs like the fixed or overhead costs, hire equipment fee, etc have to be borne by the Contractor. Thus it becomes imperative for project managers to maintain them in their best shape and condition. Putting more effort into planning the management of your equipment and its maintenance can improve project and financial outcomes.

Fortunately, benefits of construction equipment management has proven to pay off. Effective construction equipment is the answer to making construction projects more cost-effective while ensuring timely completion of projects. On this blog, we will focus on ENKA’s equipment management platform, EGEM – Global Equipment Management System and the innovations ENKA has improved to make equipment management process much more efficient.

What is Equipment Management Systems on Construction Sector?

As you probably guessed, construction equipment management refers to the administration of equipment used on construction projects. At a more detailed level, the practice encompasses the review of the equipment, its costs, and usage.

Construction managers want to ensure that the cost of the equipment pays off in the long run. Besides the cost of the equipment itself, there are expenses associated with operation, maintenance, usage, spare parts and fuel.  Construction managers study this information alongside upcoming and current projects to inform decision-making. Ultimately, the goal of these decisions is to generate the highest possible ROI.

Tips for Effective Construction Equipment Management

Set Up a Preventative Maintenance Program

Preventative maintenance is essential to extending the life of your machinery and equipment and avoiding costly repairs. As MacAllister specified, “Preventive maintenance is more than regular maintenance like lubricating moving parts and changing filters. A proper preventive maintenance (PM) program is all-inclusive. It’s an intentional approach to equipment management from the time equipment is purchased until the end of its useful life.”

PM (preventive maintenance) programs take action before wear and tear lead to major expenses or equipment failure. Through regular inspections, part replacement, testing, and analysis, you can improve the reliability, performance, and resale value of your fleet.

Monitor Your Equipment At All Times

Managing a fleet can make it difficult to know where your equipment is at all times. The same is true for scheduling maintenance across multiple items. IoT sensors can help to reduce the manual nature of monitoring equipment and planning maintenance.


According to Leverege, construction equipment managers can leverage IoT technology to:

                  • Track equipment status and utilization
                  • Identify the location and status of equipment in real time
                  • Get instant notifications when equipment is moved off-site (GEO-fence)
                  • Monitor engine runtime



Benefits of Successful Construction Equipment Management Software

As managers look for ways to improve the efficiency of their construction equipment, new innovations are coming to the forefront. You might be wondering, “Is it really worth the effort?”

The answer, of course, depends on the benefits received by the system. You can expect to achieve the following advantages from successful equipment management systems:

  • Better visibility into where equipment is located, its status, and how it’s being used.
  • Fewer delays and cost overruns. With real-time information at their fingertips, teams can make quick decisions about how to use equipment.
  • Better safety standards as the equipment is kept up-to-date and maintained.
  • Less downtime as equipment can be used as soon as it’s available.
  • Reduced expenses in the form of costly repairs and project overtime.
  • Cohesive data to help inform decisions about retiring, selling, or upgrading assets.

EGEM with its user-friendly interface offers the end-users an easy to understand flow, created similar to practical nature of construction industry, better deal with their equipment to avert sudden surprises in the project site.

To get more information about EGEM, please visit our website or request a demo.

Also for more insights into the construction industry, pleasecheck out our digital transformation blog.