Pricing For Today’s Construction 05Economy COVID-19 changed everything. Prior to a global pandemic, the construction economy worldwide had benefited from a long “bull-market” run of growth and stability. For contractors, owners and design firms, the market expansion took the form of ambitious projects and rapid adoption of technology to expedite project delivery. Technology firms responded to growing demands on productivity improvements and a renaissance of new capabilities hit the market. However, some technology firms chose to push the upper limit of pricing for these new tools by taking a slice of the growing profit margin of contractors. With an abundance of construction projects and “introductory” pricing offered by technology vendors, the construction industry barely blinked as they consumed more software subscriptions. However, as contractor profitability erodes amidst the COVID-19 impact and a slowing of the construction economy, what was once a 2.8% to 3.2% project profitability margin is now facing downward pressure. Amidst this pressure, it is hard to argue for sending 0.5% to 1.0% profitability margin to a tech vendor in exchange for the use of construction project management software. When considering a project management solution provider, buyers of construction technology should consider core capabilities they actually need versus the price trade-off for all the bells and whistles you can live without. Prioritize your needs such as budget and cost management, document management, and field management and look for solutions that fulfill those needs at 35% less than the leading solution. Top Contractor Construction Management Software ACTION: that are affordably priced: Before you renew your subscription, stop and ask yourself what you need and are using today. • Trimble ProjectSight • Jonas Premier Prioritize your must-have capabilities and then begin your search. As you speak with vendors, • Viewpoint One • eSUB insist on saving costs compared to leading competitors. Chances are you will be able to. • CoConstruct • Fieldwire 5 Factors You Must Consider in a Project Management Software Provider