The 18 billion Euro problem: Communication errors as the main cost driver
Error costs in the German construction industry reached a total of 18.3 billion Euros in 2020, which corresponds to about 12.8 % of the total industry revenue. One of the main causes for this immense figure is poor communication between project participants. Unclear responsibilities and the lack of centralized information sources lead to misunderstandings that directly result in costly rework and construction delays. Every undocumented agreement carries a financial risk of several thousand Euros. Productivity in the construction industry has only grown by 0.26 % annually in the past 20 years, while the overall economy has increased by 1.32 %. A digital collaboration tool for construction breaks these inefficient patterns. It creates a single, reliable source of information and ensures that instructions and approvals are traceable. The introduction of such tools is the first step in minimizing these billion-euro losses.
Core features of modern collaboration tools for construction
An effective construction collaboration tool must do more than just send messages. It serves as the central nervous system for the entire construction project and digitizes crucial workflows. For maximum process optimization in construction the following functions are critical:
- Central communication: Consolidates all project-related communication in one place and replaces unstructured WhatsApp groups. This ensures a seamless traceability of all agreements.
- Task management: Enables clear assignment of tasks to employees and subcontractors with deadlines and status updates, clarifying responsibilities by 100%.
- Automated construction documentation: Automatically generates legally secure construction daily reports from photos, messages, and notes, reducing manual effort by up to 70%.
- Defect management: Digitally captures defects via photo directly on the construction site, assigns them to a responsible person, and tracks their resolution in real-time.
- Plan and document management: Ensures that all participants always work with the latest version of the plans, reducing errors from outdated documents by over 90%.
- Live translation: Overcomes language barriers in international teams through automatic translation of communication in over 15 languages.
These functions work together to ensure a smooth flow of information from the office to the construction site and back.
Legal security with a click: The VOB-compliant documentation
The German Construction Contract Procedures (VOB) require comprehensive documentation of the construction process, including daily reports, measurements, and protocols. Missing evidence is one of the most common reasons for deductions in final invoices. A digital construction collaboration tool automates these documentation duties and creates legally sound evidence. Every defect documented with a photo secures an average of 500 Euros in case of dispute. All data is stored inalterably with a timestamp in the cloud, meeting GDPR requirements. Cloud-based solutions enable all project participants to access relevant documents in real-time. This not only minimizes the risk of litigation but also strengthens the negotiating position in change order claims. A clean, digital communication between the construction site and the office thus becomes the best insurance for your compensation claims.
Increase efficiency: How digital tools save time and resources
The introduction of digital tools is a direct lever for increasing efficiency. A PwC study shows that 81 % of construction companies see cloud technologies and platforms as the greatest opportunity, yet only half rate their own level of digitalization as high. A practical construction collaboration tool closes this gap and delivers measurable results. Construction managers save up to 2 hours a day that would otherwise be spent on manual reporting and information search. The error rate during execution decreases by up to 30 % because everyone works based on the same information. The following areas particularly benefit:
- Digital time sheets: Capture working hours directly via app and eliminate manual data entry, reducing administrative workload by 80%.
- Automatic construction daily reports: Generate reports from daily communication, saving the construction manager at least 30 minutes per report.
- Optimized defect management: Accelerates defect resolution by up to 50 %, as assignment and tracking occur in real-time.
- Resource planning: Improves the allocation of personnel and equipment through transparent task management for construction teams..
These optimizations lead to a direct reduction in project costs and a shortening of construction times.
Overcoming the biggest hurdle: Ensuring employee acceptance
The best technology fails when it is not used. 91 % of companies see the shortage of skilled workers and the lack of know-how as the biggest hurdle to digitalization. Many employees on the construction site reject complex software that requires extensive training. A collaboration tool based on a familiar app like WhatsApp has an acceptance rate of over 95 % from day one. The key to success is a tool that requires no training effort and simplifies existing workflows instead of complicating them. If employees on the construction site can continue to use their familiar tool while the data is structured and legally secure in the background for the office, acceptance is guaranteed. Such a tool for team communication builds bridges instead of barriers.
Conclusion: The right collaboration tool as a competitive advantage
A powerful collaboration tool for construction is no longer a luxury but a crucial factor for competitiveness. It resolves the core problem of unstructured communication, which costs the industry billions each year. By centralizing information, automating documentation, and simplifying usability, projects become not only up to 20 % more efficient but also legally secure. The investment in such a system often pays off within the first project through avoided error costs and saved working time. Valoon offers a simple and practical solution that works on every construction site without training effort. Book your free demo now and discover how to elevate your construction projects to the next level.
More Links
The platform de.digital provides a comprehensive overview of the Digitalization Index Germany.
Das Fraunhofer IESE published a blog post about a study on digitalization in the construction industry.
PwC provides a press release on a study about the construction industry in 2023 that addresses digitalization and sustainability.
Das Federal Statistical Office (Destatis) offers an article on the digitalization potential of construction activity statistics.
Der Central Association of the German Construction Industry (ZDB) shows its positions on the issue of digitalization.
Statista presents statistics on the implementation level of digitalization in the construction industry in the DACH region.
Der Main Association of the German Construction Industry provides an expert report on the topic of digitalization and the future of the industry.
Simon-Kucher & Partners presents a study highlighting sustainability and efficiency as key factors in the construction sector.
BIM Germany is a platform to promote Building Information Modeling (BIM) in Germany.
FAQ
Do my employees on the construction site need to install a new app?
No. With Valoon, your employees and subcontractors simply continue to communicate via WhatsApp as usual. No new app and no training is required for the team on the construction site. All structuring and legally secure archiving of the data happens in the background.
Is communication via Valoon and WhatsApp legally secure and GDPR-compliant?
Yes. Valoon ensures the legally secure and GDPR-compliant archiving of all communication. All data, photos, and documents are stored unalterably on German servers and can be used as evidence in case of dispute. Therefore, it meets all legal documentation requirements.
How does the automatic generation of construction daily reports work?
Valoon analyzes the communication in the project chat and automatically generates a construction daily report from it. Photos, completed tasks, weather data, and special events are intelligently summarized. The construction manager only needs to review the report and approve it with one click.
What does it cost to use Valoon for my construction team?
For the employees on the construction site, the use is completely free as they simply continue using their existing WhatsApp. Costs only arise for users in the office (e.g., project and construction managers) who utilize the web platform for control and documentation.
Can I also use Valoon for small projects?
Yes, Valoon is suitable for construction projects of any size, from small renovations to large new construction projects. Its simple structure and flexible pricing model make it particularly attractive for small and medium-sized enterprises looking to digitize their processes without high upfront investments.
How quickly can I get started with Valoon?
You can get started within 5 minutes. After creating your project, you simply invite your employees via a link to the familiar WhatsApp group. There is no lengthy implementation or complicated setup.
