Keep on top of complex construction projects

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Common challenges

Cash flow planning
The cash flow curve in construction can be extreme, requiring careful management to avoid liquidity concerns.
- Large upfront investment
  For most construction projects, a large upfront investment is required to get the project off the ground. This upfront cost can typically only be recouped over the long term, resulting in a cash crunch that, if not managed effectively, can cripple your business’s operational capabilities. Managing treasury and dealing with financing options requires good foresight.
- Cash flow crunch
  Without requisite planning and risk mitigation processes, a single departure from the stated plan can place a company in a cash crunch that means they can’t pay suppliers or workers on time. This liquidity crunch can force costly borrowings, or even place the company’s existence in jeopardy.
- Nuanced cash flow planning
  Cubewise and IBM Planning Analytics / TM1 offer a powerful suite of tools for advanced cash flow planning that can help construction companies manage their risk and avoid liquidity problems entirely. By utilising sophisticated scenario planning, driver-based forecasting and real-time data analysis, construction companies can stay on top of their numbers and access the information they need to make smart, proactive decisions.
Feasibility studies
- Managing risk and reward
  Construction projects are long term, they come with plenty of fixed costs and they’re very difficult to get out of if things go wrong. As such, management must do their diligence and calculate whether the ROI is worth the effort, considering all factors including internal constraints, macro-economic factors, client relationships and more.
- Negative returns
  It’s not unheard of for a construction project to lose money due to unexpected delays, problems in the construction process, exchange rate fluctuations or any number of other factors. Feasibility studies are crucial to identify these factors upfront and understand risks in detail before embarking on any new project. Without this your margins and returns remain fragile.
- Sophisticated forecasting
  Cubewise and IBM Planning Analytics / TM1 offer highly sophisticated forecasting capabilities that enable dynamic and precise feasibility studies to be performed. By running these tests in advance and evaluating them according to the company’s strategic vision, projects can be triaged and entered into with a full understanding of what’s at stake. Data transparency and powerful forecasting combine to help your business mitigate risk.
Asset utilisation
- Resource optimisation
  Construction projects require careful optimisation of resources across machinery, contractors, labour and technology. Within various constraints, companies must plan how they use these assets in parallel so as to eliminate idle time and bottlenecks that can slow down building progress.
- Wasted time and resources
  When assets aren’t utilised effectively, they create dead space and time. In extreme cases, over-reliance on specific assets can cause breakdowns and ongoing maintenance concerns. All of this places further pressure on margins, hurts relationships with clients and eats away at project ROI.
- Integrated asset utilisation
  Cubewise and IBM Planning Analytics / TM1 offer a truly integrated financial system that brings together key financial information and operational data for optimal asset utilisation. Managers can then evaluate the needs of the project, plan their asset usage precisely and run scenario testing to arrive at a fully optimised plan. This process is dynamic, based on real data and is connected intimately to the financials. Automate the complexity of scheduling in time and space, and focus on choosing the best alternative.

Large upfront investment
For most construction projects, a large upfront investment is required to get the project off the ground. This upfront cost can typically only be recouped over the long term, resulting in a cash crunch that, if not managed effectively, can cripple your business’s operational capabilities. Managing treasury and dealing with financing options requires good foresight.
Cash flow crunch
Without requisite planning and risk mitigation processes, a single departure from the stated plan can place a company in a cash crunch that means they can’t pay suppliers or workers on time. This liquidity crunch can force costly borrowings, or even place the company’s existence in jeopardy.
Nuanced cash flow planning
Cubewise and IBM Planning Analytics / TM1 offer a powerful suite of tools for advanced cash flow planning that can help construction companies manage their risk and avoid liquidity problems entirely. By utilising sophisticated scenario planning, driver-based forecasting and real-time data analysis, construction companies can stay on top of their numbers and access the information they need to make smart, proactive decisions.

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