Save 10% of Project Cost by Mastering Golden Workflows of Construction Project Management

The workflows mentioned in this article are, in our understanding, are foundational to managing a construction business. Our understanding about the sector is shaped from two sources mainly:

Scaling a design and build company focused on building offices (91Squarefeet) from 0 to $10Mn in 3 years.
Digitising operations for 300+ Fitout and EPC companies in India and ME, working across different sub-stream of construction such as Homes, Plants, Dams, Transmission Lines, Roads and Bridges, Airports, Offices etc.

Journey of Discovering these workflows

When we launched 91Squarefeet, we had grand visions of revolutionizing construction with robots and fully digitised supply chains. What we didn’t realize was how quickly reality would set in. Within a year of launch, we were managing 30+ parallel projects with 100+ team members – but our margins were bleeding, working capital stretched to 90 days, and worst of all, our customers were suffering. For nearly 15 months, we couldn’t even accurately calculate our project margins. We had no control on our receivables and payable. The whole business was operating in an ad-hoc, unstructured, and out-of-control manner. That’s when it hit us, we were so focused on differentiation that we neglected the fundamentals. we had to master critical workflows first: vendor PO management, invoice processing, payment approvals, and daily progress reporting. Each of these seemingly basic processes was costing us 1-2% in margins. We learned that construction success isn’t about flashy tech—it’s about disciplined execution of these core workflows.

The Four Critical Departments in Construction Project Management

At the heart of construction project management are four key departments whose coordination (or lack thereof) can make or break a project’s success. The Planning Department is responsible for creating project schedules, milestone tracking, and resource allocation forecasting. The Procurement Team handles vendor selection, material ordering, and supply chain management to ensure materials arrive when needed. The Site Execution Team comprises project managers, site engineers, and laborers who physically construct the project according to specifications. Finally, the Finance Department manages budgets, processes payments, tracks expenses, and ensures compliance with financial regulations. When these departments operate in silos rather than as a unified system, projects inevitably suffer from delays, budget overruns, and quality issues. The disconnection creates a devastating ripple effect: delayed materials lead to idle labor costs, incomplete documentation delays client payments, and hasty workarounds compromise quality standards. Breaking these silos through integrated workflows is essential for project success.

Snapshot of the consolidated workflow – covering all parts of construction management

In the sections that follow, we’ll explore ten mission-critical workflows that form the backbone of successful construction project management. These workflows aren’t just theoretical concepts—they’re battle-tested processes that directly impact project timelines, budget control, and client satisfaction. Each workflow addresses specific pain points that plague construction operations, from purchase order management to real-time progress tracking. Let’s examine each workflow in detail, understanding not only the mechanics but also how they interconnect to create a holistic project management ecosystem that drives profitability and operational excellence. We shall divide the workflows into 3 big buckets:

Progress Tracking

Financial Control

Procurement Management

Progress Tracking Workflows: Saves 5%

Collectively, mastering the seven Progress Tracking workflows detailed below can save construction companies approximately 5% of total project costs. These workflows form the backbone of operational efficiency by eliminating information silos, reducing rework, preventing material wastage, and optimizing labor productivity. When Daily Progress Reports, Site Schedules, Installed Work Progress tracking, Material Handling, Design Management, Snag Management, and Site Survey workflows are systematically implemented, they create a synchronized ecosystem where real-time data flows seamlessly between departments. This integration prevents costly delays, minimizes change orders, reduces material waste, and ensures that labor resources are optimally allocated. The 5% cost savings materialize through reduced delay penalties (1-2%), decreased material wastage (2%), improved labor productivity (1%), and accelerated project closure (1%), ultimately translating to healthier profit margins and enhanced client satisfaction. Companies that excel in these workflows consistently outperform their competitors in both financial performance and project delivery timelines.

Daily Progress Report (DPR)

Maker & Checker: Projects & Sales

Pain Points: Misreporting due to informal communication methods.
How to Fix: Standardize reporting templates, automate distribution, and integrate manpower and materials tracking.
Benefits: Improved accountability, enhanced client confidence and experience.

Site Schedules

Maker & Checker: Projects & Sales

Pain Points: Frequent schedule shifts, missed dependencies, lack of clear task management.
How to Fix: Implement task-driven scheduling, highlight critical paths and dependencies digitally.
Benefits: Efficient resource management, timely project delivery, and better client satisfaction. Upto 2% Cost saving by reducing delay penalties and improving manpower productivity.

Installed Work Progress

Maker & Checker: Projects & Finance

Pain Points: Poor tracking of installed works, financial exposure, and cash flow management issues.
How to Fix: Live tracking of installed work, automate invoicing alerts linked with actual project progress.
Benefits: Improved cash flow management, minimized project financial risk.

Material Handling

Maker & Checker: Projects & Procurement

Pain Points: Inefficient GRN process, wastage of unused material, inadequate quality control.
How to Fix: Digitally manage material lifecycle, automate GRN for quality checks, and manage surplus effectively.
Benefits: Reduction in material wastage and leaks, approximately 2% savings in material costs.

Design Management

Maker & Checker: Design & Projects

Pain Points: Poor version control, inefficient distribution of design documents, potential errors in implementation.
How to Fix: Digitize and version-control design documents, automate distribution with controlled access.
Benefits: Reduces errors and streamlines collaboration among stakeholders.

Snag Management

Maker & Checker: Projects & Sales

Pain Points: Delayed project closure, poor snag accountability affecting final cash flows and quality.
How to Fix: Structured snag logging, clear SLA tracking, distinct management of vendor and client snags.
Benefits: Enhanced project quality, timely closures, and optimized cash flow management.

Site Survey

Maker & Checker: Projects & Design

Pain Points: Time loss due to multiple site visits, inconsistent site information capture.
How to Fix: Digitally template and standardize site surveys, enable visual annotations and comprehensive data capture.
Benefits: Increased accuracy in initial project assessments, significant time savings.

Financial Control Workflows: Saves 5%

The key un-addressed risk in managing construction operations for most companies is that the cashflows are not tied to project progress. Once you have figured out installed work progress tracking mechanism for your projects (highlighted in the progress tracking workflows), you can link various financial activities to the project progress and implement checklist for the finance team. This will help you scale your business with confidence and delegate decision making to your mid-management.

The Financial Control Workflows collectively represent a significant opportunity for cost savings – up to 5% of total project costs. These six critical workflows (Vendor POs, Final Vendor Invoice, Vendor Descoping and Change Orders, Vendor Payments, Site Imprest, and NT Approvals and Billing) create a financial control system that prevents leakage at every transaction point. The savings materialize through multiple channels: preventing excess payments to vendors (1-1.5%), capturing all non-tendered items in client billing (1.5-2%), reducing administrative errors in invoice processing (0.5-1%), minimizing petty cash misuse (0.5%), and optimizing payment timing for better cash flow management (0.5-1%). When implemented systematically with proper digital tools, these workflows transform financial management from a reactive accounting function to a proactive cost control system that directly impacts project profitability.