Cost overruns are a pervasive challenge in the construction industry. According to KPMG’s 2015 Global Construction Survey, a staggering 69% of projects experienced cost overruns of 10% or more. These overruns not only erode profit margins but also strain relationships between stakeholders and jeopardize project timelines. Rabbet addresses this industry-wide issue by dramatically reducing cost overruns to less than 8.5% on projects completed using its platform—an 87% improvement. Here’s how Rabbet empowers real estate teams to achieve this.
The Cost Overrun Problem: A Data and Communication Gap
Cost overruns often result from fragmented workflows, poor communication, and a lack of centralized data. When budgets, documents, and schedules are scattered across spreadsheets and emails, teams struggle to identify risks and manage changes effectively. Rabbet’s centralized data foundation eliminates these inefficiencies, enabling teams to prevent overruns before they occur.
Rabbet’s Solution: A Unified Platform for Project Success
Rabbet transforms how construction projects are managed by integrating all critical functions into a single, intuitive platform. Here’s how each feature contributes to minimizing cost overruns:
1. Budget Management
Rabbet provides real-time budget tracking, allowing teams to monitor actual costs against forecasts. By centralizing budget data, the platform ensures that any discrepancies are identified and addressed early, preventing small issues from escalating into significant overruns.
2. Document Management
Efficient document management is critical to controlling costs. Rabbet centralizes all project documents, from invoices to contracts, in one location. Automated data extraction and categorization eliminate manual errors and provide instant access to critical information.
3. Team Collaboration
Rabbet fosters seamless communication between all stakeholders. With real-time updates, notifications, and configurable workflows, teams can address changes and approvals collaboratively, ensuring alignment and reducing delays that contribute to cost increases.
4. Benchmarks & Insights
Rabbet’s analytics tools provide benchmarks and insights that help teams track performance and identify trends. By understanding what’s driving costs, teams can make informed decisions to stay within budget.
5. Contract Tracking
Contract mismanagement often leads to unanticipated expenses. Rabbet’s contract tracking feature ensures that all obligations are clearly documented and monitored, reducing the risk of unexpected costs.
6. Draws & Reports
By automating draw requests and integrating them with project budgets, Rabbet reduces the administrative burden and ensures that funding aligns with actual project needs. Detailed reports provide transparency for stakeholders and funding partners.
7. Loan Administration
Rabbet simplifies loan management by organizing disbursements, compliance documents, and lender requirements in one place. This streamlines funding processes, preventing delays that can lead to cost escalations.
8. Cash Flow Forecasting
Accurate cash flow forecasting is essential for avoiding financial shortfalls. Rabbet’s forecasting tools provide visibility into future expenses, helping teams plan effectively and avoid surprise costs.
9. Lien Waiver Management
Managing lien waivers manually can lead to payment delays and disputes. Rabbet automates lien waiver collection and tracking, ensuring smooth workflows and minimizing legal risks that drive up costs.
10. Invoice Management
Rabbet automates invoice reviews and approvals, reducing manual errors and ensuring timely payments. Integration with accounting systems further accelerates workflows, saving both time and money.
11. Schedule Management
Rabbet integrates project schedules into its platform, providing real-time visibility into milestones and dependencies. This helps teams identify potential delays and make adjustments to avoid associated cost increases.
12. Funding Source Management
For projects with multiple funding sources, Rabbet tracks contributions and ensures compliance. This reduces administrative complexity and provides clarity on available resources, preventing misallocated funds.
The Results: Projects Delivered On Budget
Rabbet’s comprehensive approach to project management ensures that teams have the tools they need to identify, address, and prevent cost overruns. By automating workflows, centralizing data, and fostering collaboration, Rabbet reduces the likelihood of overruns from 69% to less than 8.5%, saving time, money, and stress for all stakeholders.
Conclusion: Building with Confidence
Cost overruns don’t have to be the norm in construction. With Rabbet’s innovative platform, real estate and construction teams can deliver projects on budget and with confidence. By eliminating inefficiencies and enhancing communication, Rabbet empowers teams to achieve more with less.
Ready to take control of your project costs? Learn more at rabbet.com.
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