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What's Your ROI?

Measuring the value of software technology for a construction company can be difficult as the savings are not always apparent or easy to measure. Calculating ROI from a Technology Investment comes down to two variables; what matters is figuring out their value.


Figuring out the financial value created by the technology that is being used.


The total cost of buying, implementing and maintaining the software.


Finding the total net investment by dividing the investment by the benefits.


A common misconception is to assume “time-saved” translates into direct savings, but the reality is quite different. In truth, you only realize direct savings from the time saved if you stop paying for that time, which can reduce your team’s size.

More commonly is the time saved used for tasks that produce a benefit for the organization. Taking on more projects or having more time to manage and document more diligently can maximize project profitability and reduce exposure to disputes.

Another benefit to time-savings can be measured by reducing stress in the work environment and overall improvements to the quality of life while on the job. Turnover costs go beyond the time spent to find, interview, hire, and train new staff. It also includes loss in relationships as well as jobsite knowledge – when you lose good people, these costs can be very high.

"RedTeam has been an effective upgrade to our previous software systems. Processes are streamlined and employees are more productive overall. We have a great relationship with the team and feel that we are a valued client. Their market value can't be beaten."

Dana Webb, Controller at Landsouth


Properly calculating the investment made in the technology platform(s) for your organization is important to get your numbers as accurate as possible. It would help if you accounted for the software itself and its implementation cost, the time invested internally to set up, and time invested in training and rolling out to your team.

It would help if you also considered possible servers, hosting costs, data plans, and equipment costs when figuring out the total investment you plan to make.

In some cases, you will get a direct benefit by replacing other platforms you have in place, reducing your need for servers, or reducing hosting and IT support needs.

"Financial forecasting and risk management are the two most important task a project manager should keep under control, Redteam does a great job offering the tools to keep track and report at all levels."

John R., Project Manager


Measuring productivity gains can be done by estimating different elements where you expect to create value for your company. Some of the more impactful elements include taking on more projects and lowering disputes and error costs.

Disputes are a major risk for construction companies, as well as, errors caused by communication breakdowns. Quantifying the value of these benefits is difficult as you effectively are trying to measure problems you don’t have anymore.

Download Your ROI Calculator

This construction technology ROI Calculator is designed to help you think through these elements. You are able to edit the document based on your organization’s specific structure, as well as, your estimated impact. We hope this provides you with great value in your search to optimize your operations and profitability.

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