Construction Erp Software The challenge isn’t finding innovative enterprise resource planning (ERP) software; it’s narrowing your options down to a modern solution that effectively streamlines everyday work processes, follows regulatory standards, and scales with your growing business.

If you’re feeling a little overwhelmed on which ERP solution you should or shouldn’t implement, here are a few tips and tools to help you with your search.

Construction ERP software is a comprehensive solution designed specifically for the construction industry to manage and streamline various aspects of construction projects and operations. It integrates essential functionalities such as project management, accounting, procurement, inventory management, scheduling, human resources, and customer relationship management into a unified system.

Construction ERP software helps optimize project planning, resource allocation, budgeting, invoicing, and reporting, enabling construction companies to improve efficiency, reduce costs, and enhance overall project management capabilities.

Enterprise Resource Planning (ERP) software allows for greater visibility and collaboration across all functions in a company, from human resources to sales and marketing to financials and accounting. It puts every stakeholder on the same page by providing access to a shared database system. As a result, companies can enjoy many benefits, including efficient communication, opportunities for automation of processes and systems, and greater profitability. With this in mind, ERP software is a great tool not only for manufacturing companies and large enterprises but also for other businesses such as construction.

However, over the years, construction businesses have been slow to adopt ERP technology compared to other industries. For this reason, it can be quite a challenge to find a reliable ERP system that is industry-specific. Harder still is finding one that matches the precise needs of your company. To make the process easier for you, we outline the best ERP software for construction business in this article. What follows is a comprehensive look at the top-rated ERP systems, their rating, unique features, and competitive advantages.

What An Construction Erp Software Solution Offers

Construction Erp Software out there, it’s important to remember two things: ERP software should help you with your everyday tasks but also assist in your company’s long-term growth. It needs to have capabilities to help with different financial and operational processes, it needs to be adaptable to your business needs, and it should also be built on a modern technology platform that gives you business process automation, insights, security, and scalability. Here are other benefits a modern ERP solution can offer you.

Affordability

The solution you choose needs to offer pricing alternatives that work for you based on multiple factors, including the size of your business, the features you need, and where your data is hosted. Keeping your total cost of ownership (TCO) in mind, you should be willing to negotiate any and all costs with your technology partner.

Compatibility

Choose software that works with and improves on the business processes you’re using now. Efficient ERP should be adaptable enough to install on a server, on premise, or in a cloud solution and viewable on company devices, like tablets and phones.

Scalability

An effective solution should easily integrate with other software and services you’re using today, with the potential to scale with your business locally and globally. This means identifying new business opportunities and expanding lines of business with the ability to transfer between multiple systems.

Security

If you’re considering a move to the cloud, look for ERP systems that specialise in network and data security. It’s also important that the solution you choose helps you meet the regulatory compliance needs your industry requires.

Deployability

Speaking of moving to the cloud, implementation can be the trickiest part of integrating new ERP software. Investigate your deployment options, including on-premises and automated, cloud-based solutions. We’ll break down the advantages of having ERP in the cloud later.

Implementing ERP in the Construction Industry

ERP systems have been widely used across all business sectors but none have recognized the need for investing in technological investment for sustainable growth more than the construction industry.

The absolute necessity for improved efficiency, transparency of process and long-term cost management and control are recognized as pivotal factors in remaining at the pinnacle of the market in a sector that is fiercely competitive and operating on significant scale of investment and profit.

If you are in the construction industry and considering investing in an enterprise planning solution (ERP), this article will give you significant strategic insight in what you need to know. Keep reading to learn about implementing ERP in the construction industry.

Power(ful) Tools for Contractors

Can you have too many resources and tools that positively impact your business? One of the core benefits of Construction ERP is the wide range of features designed specifically for contractors and contract management. A comprehensive ERP will provide elements such as:

• Procurement and controls
• Specialised Cost Ledgers
• Payroll and Labour Costing
• Plant and Equipment Costing
• Contract Cost Reporting
• Business Intelligence
• Document Management
• Time and Attendance Systems
• Human Resource Management
• Enterprise Accounting

When evaluating your potential solution, you will need to understand how the functions will integrate and benefit you but there are 3 core elements that you must ensure are provided.

The 3 Core Elements your Construction ERP Must Have

1. Contract management. Traditional ERP systems are product based whereas a construction ERP must be focused on Capital Assets contract management. The peculiar challenge for a construction ERP is on managing a scope of work that can be fluid relating to a complex asset. Contract management needs to allow for multiple changes (sometimes hundreds of changes from initial design) and be structured to handle workflow approvals, contract changes and revisions.
2. Valuations within contract management. Unlike product based systems where there will often be a defined cost base, the construction industry needs to measure and account for work completed (Valuations). This is commonly done on a progressive monthly pattern and forms the basis for payments being received or remitted to sub-contractors. These valuations are often submitted by the Quantity Surveyor (physical measurement against the bill of quantity) and used to form the basis of applications for payment submitted to the client.
3. Cost control.The complexity of cost control in construction goes far beyond the abilities of a traditional ERP. A construction ERP must be able to handle such diverse elements as resource allocation (internal and external), payments on milestones, sub-contractor costs and plant and equipment. The ability to set a budget for the project as a whole and adapt to changes are key in addition to the ability to provide scheduled and up to date reports, business intelligence and revision of the project forecast based on actual spend. This will assist on maintaining control of costs and, of course, margin.

In reality, a true, tried and tested ERP designed for the Construction Industry will do all of these and much more. Explore the options available and take guidance from the industry leaders in the field who have already adopted these systems and benefits and let technology provide the additional support and efficiencies that are available. Implementing ERP in the construction industry doesn’t have to be a struggle when you partner with an industry leader.

The benefits of ERP software for construction companies

Implemented and managed effectively, ERP software for construction companies can unlock tremendous opportunities—and even competitive advantages. These benefits stem from improved project management oversight, streamlining processes, and increased visibility into all aspects of not only projects but also company operations.

For example, today’s smart ERP software can automate workflows, provide real-time project data, and facilitate collaboration between teams. The result is better communication and more efficient project completion. 

The same goes for financial management—one of the biggest challenges on any project. Within an ERP system, builders can track costs and expenses across multiple projects, analyze profitability, and make data-driven decisions based on accurate and up-to-date financial information. The resulting insights (and action) can help reduce costs, increase revenue, and improve the bottom line. 

From better visibility into supply chain management to optimization of assets and inventory, here’s a look at more of the groundbreaking benefits ERP offers to construction companies:

• Business intelligence and data analytics at the project and company level
• Cross-project collaboration and improved communication
• Customizable solutions for asset, inventory, and supply chain management
• Risk management and data security for critical project documentation
• Workflow visibility and process documentation to create accountability

Top features to look for in a construction industry ERP

The construction industry is diverse and, similarly, so is the landscape for ERP software. To maximize implementation and realize the full potential of an ERP solution, construction companies need to keep the following key features in mind: 

• Project management. An ERP system should include project management tools that track the entire project lifecycle, from pre-planning to completion. Important oversight areas include scheduling, budgeting, costing, and resource management.
• Job costing. Construction project costs are constantly in flux, including materials, labor, equipment, and overhead. An ERP system needs to have robust job costing functionality to accurately track and allocate spend specific to different phases and tasks.
• Procurement management. Procurement management folds into supply chain management: a critical facet of success for construction companies. ERP software should offer tools to help track purchase orders, approvals, and inventory levels across jobs.
• Resource scheduling. Managing resources—including labor and equipment—is an ongoing struggle in construction. ERP features around resource scheduling can help maximize the availability of essential assets across job sites.
• Financial management. It’s critical to have clear oversight on progress billing, change orders, and retention, among other financials. An ERP system offers features to help in managing these transactions—and to ensure accurate accounting.
• Reporting and analytics. While construction happens on-site, reporting and analytics help managers gain insights into project performance, financials, and other key metrics. This helps when making data-driven decisions that optimize project performance.

These features are only some of what today’s construction ERP platforms offer—and they’re far from an exhaustive list. Automation, integrations, and cloud functionality are also important aspects to consider and can drive the efficacy of many of the core functions mentioned above. 

How to choose a construction ERP system

With so many features (and benefits) to consider, the question becomes one of choosing an ERP system that builds everything your firm needs. What should construction companies look for when choosing a construction ERP?

Above all, identify the specific functionalities you need—likely features such as project management, accounting, inventory management, and scheduling. At the same time, consider the size of your company, the number of users that will use the system, and the level of customization and scalability required.

Keep in mind that an ERP system needs to be encompassing to work effectively. That means also considering integration capabilities. The system should be able to integrate with other applications and software tools you use over the course of project planning and build execution—CAD software or your payroll software, for example. The ERP needs to operate seamlessly with your existing technology infrastructure.

Finally, consider vendor experience. Is this a construction ERP platform or just a general ERP? There’s a difference and it matters! It’s also smart to get a clear understanding of the level of support and training they offer. The vendor should have a deep understanding of the industry’s unique requirements and offer ongoing support to ensure the successful implementation and adoption of their ERP system.

What is the best ERP for construction companies?

There’s no shortage of construction ERP solutions available today—many of which are highly regarded thanks to the benefits they’ve delivered to organizations big and small. If you’re just beginning your search for a solution to help you track and manage the many facets of your operation, consider starting with one of the most well-known ERP software options: Sage Intacct.

Sage Intacct offers tailored features and comprehensive functionality that align specifically with the construction industry’s unique requirements. With its robust project accounting capabilities, this ERP solution enables construction companies to efficiently manage complex projects, track costs, and accurately allocate resources. The software offers real-time visibility into project performance, allowing construction firms to make informed decisions and effectively monitor budgetary constraints. 

Additionally, Sage Intacct streamlines financial processes by automating tasks like invoicing, accounts payable, and financial reporting, saving time and reducing the risk of errors. The software’s scalability and cloud-based nature ensure that construction companies can easily adapt to growth, handle multiple projects simultaneously, and collaborate seamlessly with various stakeholders. 

Get the most out of an investment in construction ERP

By nature, the construction industry is one that revolves around enterprise resources: people, materials, equipment, and timelines. Bringing them all together with construction ERP software is the first step in seeing how each of these critical aspects impacts the other—and how they all come together in a successful project. 

The ability to track, manage, and understand scheduling, financials, supply chains, and other critical factors puts construction companies in a position to improve not only their approach to projects, but also how they run their operations. By selecting an ERP system that provides clear oversight and quantifiable insights, they open the door to benefits like increased efficiency, reduced costs, and improved decision-making. Who wouldn’t want to build around that?