CBEM Construction’s Improved Cost Management with Varicon

SUMMARY

CBEM Construction is a civil construction company based in NSW on the lookout for better ways to manage their costs and contracts. Previously, they relied on Excel spreadsheets to keep track of their projects and finances. This method proved challenging because it was not easy to manage, and information could be hard to find, resulting in avoidable cost overruns. That’s why they now use Varicon, a connected cost management software designed specifically for the civil construction industry.

We spoke to Managing Director Ji Zhang, who said that he enjoys working with Varicon because we are built specifically for civil construction, meaning that we understand the industry better than any other competitor. Furthermore, he likes the idea of growing with Varicon, which is still in the early stage of its journey and more nimble in its approach than established players in the market.

“Varicon is a business with very passionate people. They are always working hard, chasing me, chasing my team. They consistently work on their roadmap and update the software.”

THE CHALLENGES

Getting rid of all the Excel sheets that civil contractors depend on to track their costs

Most civil contractors have worked with Excel which, when they start, seems like a straightforward tool for tracking costs. But over time there is a lack of standardisation across the company resulting in inconsistent data which makes it difficult for the general managers to get a clear picture of each project. To add to this, each project manager tends to use their own template making it complicated to understand the company’s financials consistently. Excel’s error-prone nature can cause headaches for the project and finance team, who have to constantly check and recheck their data. This time-consuming process of cost tracking and claims along with double handling of data takes up too much of the team’s valuable time. 

CBEM identified this issue and engaged Varicon to solve it. Prior to using Varicon, the CBEM project team only knew on a high level whether they made profits on the projects or not. They didn’t always know where they made money and where they lost money.

“In terms of the software, we want to really try to help our business be more efficient. [other businesses] cannot take care of us the way that Varicon can.”

THE SOLUTION

Making data-driven decisions quickly and efficiently

“This is a specific solution for small to medium size businesses. I want Varicon to grow with my business.”

 

CBEM implemented Varicons’ software which provided a centralised dashboard allowing project managers and executives to view project performance in real time. Anyone on the project can make data-driven decisions quickly and efficiently. Varicon’s standardised cost-tracking method provides a consistent way for the finance team to manage their costs across the company. When real-time data is captured from the field, it is easier for the team to track progress and keep track of their costs. The connected nature of the platform, which captures data at source and avoids double handling of data, makes the cost management process more efficient for time-poor civil contractors.

“We want something to really help us build our business. I see the potential. We’ll grow and I want us to grow together.”