What is a Construction Inventory Report & How to Make it?

A construction inventory valuation report is an important aspect of running a successful project and leading it to the desired completion date. However, many companies fail to comprehend the challenges of inventory management and end up in a chaotic situation. Statistics show that 34% of businesses struggle with unavailable products and delayed shipments.

Managing an inventory is a nitpicking task and trying to allocate everything in a detailed report can be quite challenging. While acquiring these items can impact 40 to 70 percent of a company’s total spending and mishandling of this budget can oftentimes become the reason for delays and customer dissatisfaction.

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What is a construction inventory valuation report?

A construction inventory valuation report is an organized form of information that provides a clear picture to easily view the resources available and resources that need stocking, need to be replaced, or are due for rentals. This includes essential items like tools, equipment, and supplies.

Having a clear idea about the inventory creates effortless budgeting, eliminates time constraints, improves workflow, and aids in saving costs.

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What are the essential components of a construction inventory valuation report?

With the various types of equipment that are required at a construction site, the need for specific inventory management also differentiates the types of construction inventory valuation reports. 

To manage your project’s budget and the work force, it is essential that everything is organized according to its category.

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1.  Reports on equipment and tools

When tool theft accounts for businesses losing 1 billion dollars annually and 78% of tradespeople become victims of tool theft in the year 2022 alone, it is extremely important to equip yourself with inventory reporting software. 

Heavy equipment and tools are often tracked through GPS or barcodes that are usually embarked on various locations all over the site/s.

The inventory of heavy equipment like fleet vehicles(bulldozers, cranes, excavators, etc) also requires information on its maintenance and constant repairs.

Other tools like drills, compactors, and jackhammers should also be inspected for signs of wear and tear and proper functioning.

The reporting of such enormous construction inventory is crucial since it cannot be stored on shelves or in warehouses and the breakdown of such equipment can result in delays amounting to numerous days/weeks and cause a constraint in budgeting.

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2. Reports on materials being used

Building materials like concrete, steel ,wood, asphalt, bricks, fasteners, caulk, and sealants are those resources that are consumed on a daily basis and need to be restocked every now and then.

Considering the fact that the price of 82.% of the construction materials has risen 19 %(on average) in the year 2023, it wouldn’t be a wise decision to overstock any of these items.

The inventory valuation report is responsible for showing the manager what items are about to run out, the availability of the material, its shelf life, space available to accommodate restocking, and the list of suppliers that are ready to deliver the required items in due time within your price range.

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3. Reports on items needed to be stocked

These items include consumables like fasteners ( nuts, bolts), adhesives ( glue, sealants), safety gear ( helmets, vests, gloves ), cleaning supplies, paints, and fueling supplies that are needed daily.  

Such items need to be stocked on a regular basis so they are available without delays. Some of these items are for one-time use only and are important in providing a safe working environment thus cannot be ignored at any cost. 

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How do you begin curating an efficient construction inventory valuation report?

Keeping track and maintaining a construction inventory valuation report can be quite challenging since these projects have different job sites and various employees are always working on rotation at these sites. 

As an inventory manager, there are a lot of crucial decisions one has to take to make sure orders are placed and fulfilled on time and no such shortages occur that might disrupt the completion process of the project.

Let’s take a look at some steps you can take to effectively manage construction inventory.

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Step 1: Create an elaborate list of items that are needed

The first step to keeping track of inventory is listing down the items already present in the company’s warehouse.

This can easily done by barcoding and assigning GPS trackers to each equipment which can further be scanned and entered in the inventory’s data system. 

These barcodes and trackers won’t only provide the location of the equipment but also the quantity available, check-in/check-out logs, maintenance schedules, and ping you to reorder supplies when they are about to run ahead of time. 

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Step 2: Markdown reliable sources of suppliers

It is always safe to mark down a list of suppliers rather than relying on only one source. The reason would be to avoid delays in deliveries, cut down rush expenses, and always have a backup in case of a rainy day.

Sudden changes in the weather, a pandemic, or an increase/decrease in supply and demand for a certain item shouldn’t stop you from completing your inventory requirements.

You should also have a long-term contract with different suppliers and also build friendly relationships with others to ask for help in times of need.

All of the contact information, relationship status, contract reports, and other necessary details should be stored on the cloud database of your inventory software.

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Step 3: Conduct a regular audit schedule

An audit schedule is necessary every few days/weeks to keep track of construction reports and reporting. This allows construction companies to prevent downtime incase of shortages of material or equipment failure.

Such audits take place in times of non-crisis so inventory managers can plan ahead of time by checking out the status of equipment, its health status, and the need for repairs. You can easily keep records updated without the hassle of doing everything manually.

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Step 4: Equip yourself with Clue’s remarkable software!

Keeping in mind that maintenance costs can cost you an extra 15% and 40% of the total production it would be wise to invest in inventory management software.

Clue generates remarkable insights on tracking your tools/equipment, generating notifications for repairs, monitoring the activity of your employees, aligning the inventory with respect to bookings/schedules, and maintaining overall equipment performance.

According to a report of 2017, 78% of the companies that used tool tracking and maintenance software, saw a considerable amount of improvement.

Not only this but one company even reported a reduction of 320 hours in production while simultaneously increasing the production rate by 15 %.

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Step 5: Keep working to improve your inventory management strategies.

As a construction inventory manager, it is important to anticipate supply and demand needs before any problem arises.

Constant changes and implementing new strategies are important to keep the production aligned with the new trends/practices in the market.

With the help of developing technology, GPS tracking, and Clue’s monitoring software you can devise new management plans to enhance production and take advantage of data storage clouds to plan future projects.

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Benefits of keeping a proficient construction inventory valuation report?

There are a lot of benefits to utilizing a construction inventory valuation report that can help you in many ways,

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1. Eliminate downtime

It has been noted that the construction industry accounts for 20-30 percent of downtime on average! That can also be calculated $448-$760 per day, per vehicle and this is just the fleet vehicles. 

By equipping your project with Clue’s tool-tracking software, you can prevent downtime by monitoring your equipment and tracking its locations all under one glass pane.

With the inventory management feature, you will be able to order supplies/tools before they run out, prevent delays through shortages, and complete the project in time!

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2. Manage costs effectively

According to the National Equipment Registry’s 2023 report, 179 thefts were recorded in a single day comprising a loss of 4 million dollars! It is also estimated that the breakdown of a single equipment can affect about 50 other pieces resulting in a 2 million dollar loss annually. 

While a construction inventory valuation report cuts down on rushing expenses (in case of a sudden breakdown) it also performs regular audits and keeps track of reliable suppliers to fulfill your needs as soon as possible.

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3. Plan projects wisely

Plan your projects without any hesitation because Clue’s software will allow you to be a hundred percent sure about the equipment you have and the tools readily available so you can start working on a particular site/area without stopping in the middle due to insufficient supplies.

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4. Timely purchase/rent of equipment

When you have a list of reliable suppliers, schedules aligned for reordering before the items run-out, knowledge on space/storage to reduce overstocking, and a functioning schedule for booking equipment, you can easily order more tools/supplies whenever needed.

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5. Improve communication among team members

The inventory management software also has a calendar where employees can book equipment for use eliminating overbooking issues and saving time that was previously used to track down equipment. You can simply notify all your team members if equipment is malfunctioning or needs repair to vice versa to order immediate maintenance.

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How can  Clue help build a remarkable construction inventory valuation report?

Clue’s app has a specified list of features that are utilized in maintaining an inventory construction valuation report.

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1. Geofencing

This allows you to manage and assign the specific equipment that is needed for a particular project. This feature is quite efficient in preventing extra fuel consumption by optimizing fleet utilization within the geofenced areas.

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2. Utilization Reports

This is a very important part of the whole tool tracking app and not just the inventory management. It monitors the equipment’s health statuses, number of hours worked, number of idle hours, need for repairs, need for stocking , and overall improving the life cycle. 

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3. HCSS HeavyJob Integration

This incorporates manual data ( data entered by the workers) and information generated through the app into a combined report.

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4. Inspection Log and Export Features

This allows you to extract a PDF report to meet audit needs and help you monitor the history of assets, their maintenance and overall tracking.

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Tips on enhancing your construction inventory valuation reports.

1. Train your staff

Companies have reported a 17% increase in productivity after training their staff. When you train your staff effectively, you prevent mishandling of equipment and allow your team members to use Clue’s software by inputting necessary details/information about equipment usage.

They learn all about inventory management and resourcefully interpret information to predict equipment usage.

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2. Perform regular checks

If you want to maintain accuracy and reduce downtime due to sudden breakdowns or inventory shortages, it is important to perform regular audits and updates on your app.

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3. Collaborate with other teams

Being a construction inventory valuation report manager, it is important to collaborate with other teams in the company related to finance, project management, and procurement. This helps in projecting and implementing an achievable goal.

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4. Implement GPS tracking systems or barcodes

If you don’t already have barcodes and GPS trackers on your tools/equipment then it is better to have them installed. Manually inputting data about resources can be quite a hassle and tracking down each and every item costs a lot of time as well.

Get barcodes to get updated about the item’s whereabouts and their availability automatically to respond in a timely manner regarding reordering/maintenance. 

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5. Take advantage of Clue’s assistance!

You can be hassle-free when you have Clue’s app to take care of everything. When you have all the information you need at your fingertips it becomes easier to equip, organize, and execute management plans.

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Get started on your construction inventory valuation report now!

It is important to note that managing an inventory system is itself a challenge but maintaining a construction inventory valuation report can be an array of difficulties.

However, with Clue’s tool-tracking software and inventory management system features, you can be stress-free about tracking down tools/equipment and making sure supplies don’t run out before re-ordering.

Furthermore, it will also help you utilize your time effectively by spending it on managing timely re-ordering and completion of the project.

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FAQs

How often should a construction inventory valuation report be generated?

An Inventory Valuation Report should be updated at least once a year, or more often if the inventory changes significantly. It is important to keep the report up to date in order to ensure that the company has an accurate picture of its inventory.

What type of information is stored on a construction inventory valuation report?

It includes information on asset types, quantities, locations, usage, maintenance schedules, and any problems that arise between manual data entering and trackers.

What is the Inspection Log, and why is it essential for a construction inventory valuation report?

It is essential for asset management since it shows the history of maintenance, compliance with safety, and other necessary data needed for further planning.

How to export construction inventory valuation reports?

You can easily export an inventory valuation report into a PDF form which can also be printed to provide copies .