Marginal Gains Add Up

HONEST BUILDINGS CUSTOMERS SAVE AN AVERAGE OF 6.3% ON PROJECT COSTS

Customers managing projects on Honest Buildings’ platform show a return on investment both in dollars spent and time saved. Working with Brookfield Properties, we created a model to quantify project costs before and after the implementation of the platform.

Savings on average amount to 6.3% of project costs, from four main areas:

ROI Chart 2 

DanielKindbergh 2

"The creation of a ‘digitized, automated bidding and capital project management’ system has helped enable our property management team to become more efficient and spend less time stuck in the outdated previous processes."

DAN KINDBERGH, SVP, BROOKFIELD PROPERTIES | READ MORE 


Hard Costs

SAVINGS COME FROM BIDDING

Broadening the field from three to five bidders results in more competitive bids and may drive as much as an 11.6% drop in the lowest bid. On average, customers reduce hard costs by 4% using Honest Buildings.

Bidding through Honest Buildings engages users more actively than traditional RFP processes. Participants ask more questions, contributing to far more information sharing and interactivity.

Michael Milstein

"Honest Buildings easily reduced project costs by 5 - 15% based on improved visibility/transparency into both the bid process and project progression."

MICHAEL MILSTEIN, PARTNER, MILSTEIN PROPERTIES | READ MORE 



Soft Costs

LEVERAGE HISTORICAL DATA TO NEGOTIATE BETTER PRICING

Up to 30% of commercial real estate construction costs are attributable to soft costs. Even at only 1% savings, the dollars add up. Over time, Honest Buildings customers amass a searchable, centralized vendor database. This data arms users with actionable information for better outcomes, e.g.,

BETTER NEGOTIATED VOLUME-BASED DISCOUNTS,
THE CAPACITY TO MAKE DECISIONS BASED UPON THEIR HISTORICAL DATA,
VISIBILITY INTO PAST CHANGE ORDERS AND TIMELINES WITH KEY VENDORS, AND CLEARER RISK ASSESSMENT.

Brian Tolman"We found ourselves able to find anomalies and outliers that said ‘we’re spending too much.’ We had a better sense of how we’re spending money in real time to make strategic adjustments, and focus our energy and costs on the things that matter to the business."

BRIAN TOLMAN, SVP DESIGN & CONSTRUCTION, CONVENE | READ MORE

Avoid Rework

REDUCE REWORK TO MINIMIZE CHANGE ORDERS COSTS

Honest Buildings’ customers garner nearly 2.2% in savings of project costs through reductions on change orders through minimizing rework. When more bidders ask more questions, answers are shared consistently with the entire group.

WHILE CHANGES WILL HAPPEN, REWORK SPECIFICALLY STEMS FROM ERRORS OR INCORRECT PLANS.
BY STREAMLINING WORKFLOWS, CUSTOMERS EXPERIENCE REDUCED MISTAKE-INDUCING AMBIGUITIES BEFORE PROJECTS BEGIN, MITIGATING TIME AND COST ADDITIONS TO THE PROJECT.
REWORK ACCOUNTS FOR BETWEEN 2% AND 7% OF TOTAL PROJECT COSTS AND 52% OF COST OVERRUNS.
ALL REWORK RESULTS IN CHANGE ORDERS AND IS 100% PREVENTABLE.

 

What Gets Measured, Gets Managed

MEASURE YOUR DATA TO BETTER MANAGE TIME AND COSTS

Automating time-consuming and repetitive project management processes through the platform produced a savings of 79.8% of total admin-related project costs.

Using automated workflows and cloud-based project management, customers found nearly 1 week per month was returned to project managers through reduced:

RFP MANAGEMENT
COST TRACKING
REPORTING
FILING

marc dober"The ROI we see is significant as the software makes my job and those of my managers a lot easier. Using Honest Buildings frees me up from shuffling too many Excel documents and gives me time to focus on revenue creation for each of the assets. It also keeps me informed from a capital perspective as I can monitor how any project is going in real time."

MARC DOBER, VP OF ASSET MANAGEMENT, HOSPITALITY, LIGHTSTONE | READ MORE

 

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Imagine relieving your team of onerous administrative tasks that take time without meaningfully impacting the bottom line. Our research shows that users were able to reallocate time to higher impact tasks and projects, boosting overall productivity by 40%.

Bid more intelligently, leverage historical data, reduce rework and change orders, while reclaiming time by automating administrative tasks. Reduce your average project costs by 6.3%.

NO MATTER HOW YOU CONSIDER THE DATA, MARGINAL GAINS ADD UP.

Ready to See How Your Business Can Save 6.3% on Project Costs?

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Get In Touch:

Procore Technologies, Inc.
115 Broadway, 4th Floor
New York, NY 10006


info@honestbuildings.com

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