The communication dilemma: Annual losses of €18.3 billion due to inefficient exchange
On large construction sites, clear communication is crucial, yet the reality is different. Information is lost in countless WhatsApp groups, emails, and calls. A study by Bauinfoconsult shows that this poor communication is one of the main causes of error costs, which amounted to €18.3 billion in 2020. This sum represents almost 13% of the total industry revenue. An unclear word or a delayed message can trigger a chain reaction leading to costly rework and delays of several months. Coordinating among the dozens of involved trades and hundreds of employees becomes a daily challenge. Failed large projects are often a direct result of this information chaos. The solution does not lie in more meetings, but in a central, accessible communication channel that reduces complexity. This approach lays the groundwork for tackling the next major hurdle: consistent and legally compliant documentation.
Legally compliant construction documentation: How to avoid 90% of disputes under VOB
The Construction Contract Procedures (VOB) require comprehensive documentation, yet the manual effort is enormous. In the absence of evidence, significant financial losses can occur in disputes. Proper construction documentation is not a ‘nice-to-have’, but the only safeguard for your payment claim. Every undocumented service will, in doubt, not be paid. Digital tools used directly on the construction site automate this process and ensure evidence security. Photos, notes, and defect reports are automatically assigned to the right process with a timestamp and location information. This creates a construction diary that stands up in court without additional effort. Construction companies that adopt this approach not only reduce their administrative workload by up to 25%, but also minimize the typical risks of the construction industry. The following processes can be fully digitized:
- Automatic creation of the construction diary
- Photo documentation with timestamp and location
- Comprehensive defect management with deadlines
- Documentation of delay notifications
- Recording of additional work and services
- Digital signatures for approvals and minutes
With a solid data foundation, managing international teams also becomes significantly easier.
Overcoming language barriers: 15% productivity gain with international teams
On German construction sites, teams from many nations work together; in Vienna, for example, around 37% of the workforce in construction is foreign. This multicultural environment is a great strength, but also poses risks due to language barriers. Misunderstandings in instructions lead to errors, rework, and jeopardize safety on site. Often, multilingual foremen act as unpaid translators, which is an inefficient and error-prone stopgap. Modern communication apps with integrated real-time translation tackle this problem at its root. An instruction is entered in German and immediately reaches the recipient in their native language, be it Polish, Romanian, or Turkish. This not only increases efficiency by up to 15% but also enhances safety as important warnings are guaranteed to be understood. A clear construction project control becomes a reality even in multilingual teams. This seamless communication is the basis for more efficient workflows in daily operations.
Efficiency on the construction site: How digital processes increase productivity by 20%
Productivity in the German construction sector has stagnated for almost 30 years, while it has increased by 103% in manufacturing. A key reason is outdated, manual processes. The paperwork for timesheets, material requests, and measurements costs valuable time every day. According to a ZEW study, over half of German construction companies see no need for digitalization or shy away from the effort. However, there is enormous potential for efficiency gains of at least 20%. A simple, digital process via an app that requires no training can overcome the acceptance hurdle. An employee on the construction site can fill out and submit their digital timesheet in just 60 seconds. The data is immediately available to the office. This is how a straightforward project management software for construction works today. The transition from analog to digital data collection looks like this:
- The employee opens a chat (e.g., WhatsApp).
- They select the ‘timesheet’ function.
- They enter their hours for the respective project.
- The data is automatically and correctly formatted and transmitted to the office.
- The project management has a real-time overview of hours worked.
This real-time data enables a completely new quality of project control.
Data-driven management: With real-time controlling, reduce cost overruns by 30%
In large projects with a volume of over €500 million, cost increases average 100%. A major reason is that project managers often operate in a blind manner as they lack current data from the construction site. Decisions are based on weeks-old reports and gut feelings. According to a KPMG study, only 19% of all projects are completed truly successfully. A digital platform that consolidates all information from the construction site – from working hours to material usage to construction progress – creates the necessary transparency. Project managers can perform real-time benchmark comparisons and immediately take corrective action if there are deviations. This data-driven controlling of large projects enables early recognition of risks and keeps costs in check. Thus, vague assumptions are transformed into well-founded decisions.
Conclusion: Your advantage with Valoon
Successful construction companies for large projects replace complexity with simplicity. Instead of relying on unreliable communication channels and manual documentation, they use a central, digital solution. Valoon was designed to tackle the three biggest challenges: It ensures easy, structured communication, creates automatically a legally compliant documentation und increases efficiency in the office and on the construction site by up to 25%. Since the platform is based on WhatsApp, the training effort for employees on the construction site is zero – a key advantage for immediate acceptance. Take full control of your projects. Book your free demo now and find out how uncomplicated the digitalization of your construction sites can be.
More Links
Destatis provides information on construction prices and the real estate price index.
Destatis provides economic indicators for prices.
Der Main Association of the German Construction Industry offers a publication on productivity in the construction sector.
Das Institute of the German Economy Cologne (IW Köln) has prepared an expert opinion on the significance of the construction industry.
Destatis publishes reports on construction prices.
Das IWH Halle provides a press release, likely on construction industry topics.
Das RWI (Leibniz Institute for Economic Research) has provided a publication, possibly on the construction industry.
Das ifo Institute offers a study on the construction industry.
Destatis provides general information on the topic of construction.
FAQ
How does Valoon help reduce costs in large projects?
Valoon reduces costs by increasing communication efficiency and minimizing errors due to misunderstandings. The automated, legally compliant documentation minimizes the risk of costly disputes and secures your payment claims. Additionally, you save significant administrative effort through digital processes like time tracking.
Do my employees on the construction site need to learn a new app?
No. Valoon works directly via WhatsApp, an application your employees already know and use daily. This means zero training effort and immediate acceptance within the team. All communication and data collection takes place through the familiar chat interface.
Is documentation with Valoon really legally compliant?
Yes. All data captured via Valoon, such as photos, notes, or defect reports, are automatically provided with an unalterable timestamp and location stamp and archived in compliance with GoBD. This creates comprehensive and evidence-secure documentation that meets the requirements of VOB and stands up in court.
How does live translation work for international teams?
When a site manager sends a message in German to the project group, the recipient can translate it into their native language with one click. The system supports numerous languages and thus breaks down language barriers in real-time, significantly improving collaboration and safety on the construction site.
What does Valoon cost for employees on the construction site?
For employees on the construction site, using Valoon is completely free. Costs are incurred only for users in the office who manage and analyze the data in the web application. This pricing model lowers the entry barrier and ensures a quick, uncomplicated implementation across the company.
Can I test Valoon before making a decision?
Yes, of course. We offer a free and non-binding demo where we will present the platform live and address your specific use cases. This way, you can see for yourself the simplicity and benefits for your construction company.
