Calculating the Financial Benefits of using an RFI Management Software Like Steer

Let’s look at a case study and determine the site productivity improvements you will enjoy by using Steer

CASE STUDY

Requests for Information

  • Mid-sized Construction Manager
  • 3 mid-sized projects each valued at $500K
  • Processes involved: Requesting for information, receiving and reviewing of RFIs, responding to RFIs, and updating of RFI logs and other documents
Materials-Ordering-and-Procurement

Summary of Productivity Benefits from Using Steer for RFI Management

CONSOLIDATED BENEFITS (1 Year)

 

Total Saved Hours

 8,640


Total Productivity Gains for Company

 $78,071


Productivity Gains ROI
(Exclusive of Project Cost Savings)

 334%

Take note that this calculation accounts for only ONE key construction management process. Imagine the financial benefits once you implement Steer across multiple areas of your operations.

 

Measuring Site Productivity Improvement with Steer

Steer improves site productivity by doing away with a lot of paperwork in the RFI process.

 

PRODUCTIVITY GAINS
(in hours saved)

 

 Hours Spent
Per Process, Before Steer		 Hours Spent
Per Process, With Steer		 Saved Hours
Per Process


General Contractor

 1.5 0.2 1.3


Construction Project Manager

 3 0.25 2.75


Designer

 61 42 19


Totals

 23.25 5.25  18

Taking each project stakeholders’ activity times in the Service Design Blueprint earlier, we first arrive at the total saved hours per stakeholder adding up to a total of 18 hours per run of the process. Typically, a company does this process weekly or 4 times a month. That’s monthly time savings of a staggering 72 hours.

PRODUCTIVITY GAINS
(in cost saved)

 

 Saved Hours
Per Process		 Hourly Rate* ($)  Total Productivity Gain per Process Total Productivity Gain per Company


General Contractor

 1.3 $9 $23 $926


Construction Project Manager

 2.75 $9 $77 $15,640


Designer

 19 $9 $63 $2,520


Totals

 18   $163 $6,506

 


We’ve assigned an hourly rate for each stakeholder in the RFI process, based on Philippine rates. This, of course, can change depending on your location. Each run of the process saves approximately 163 dollars.

As mentioned, a typical company performs this process four times a month. And with at least 5 project sites being managed at any point, this translates to around $6,500 a month worth of productivity gains.

Get 334% Return on Investment

Get significant productivity gains by saying goodbye to inefficient paperwork and using Steer!

HOW WE ARRIVED AT THE TIME SAVINGS

We first established the baseline RFI process using a Service Design Blueprint. Mapping out the before-and-after process lets you clearly see the time savings for each step and each project stakeholder. 

By using Steer, there are significant improvements in the cycle time, including the removal of two major steps in the original process:

1. the contractors, project managers, and designers/consultants do not need to use emails and any other channels to request information and process requests
2. the manual updating of the RFI logs, drawings, and other documents will also be eliminated by going digital

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About Steer

Steer is a construction management software that fits the needs of Real Estate Developer-Owners, Project Management Consultants, and Builders - making implementation easy, fast, and successful. Steer provides visibility over all risk areas in construction projects - anytime, anywhere, and on any device.​ It brings all construction project activities and stakeholders together in one place, to combat inefficiencies and lack of timely control

What sets Steer apart is the unparalleled flexibility, which makes it complete & extendible, fast to implement, and customizable to your needs.

Steer’s products (coming from 30+ solutions) include Project Management, Site Resource Management, Subscontractor Management, Finance, and Post-Construction.

Steer (as well as the QuickReach no-code platform behind it) was created by the same team behind BlastAsia, one of the largest software product engineering companies in the Philippines and a Microsoft Gold Partner for Application Development, Application Integration, and Cloud Platform.