Why Construction ERP Software is the Key to Saving Time, Money, and Boosting Productivity

The construction industry has many specialized processes and working methods. Construction companies complete a series of individual contract projects that are site based, require different types of labour, and which may last for months or years. To thrive, companies in this industry must track and manage finances, projects, labour, equipment, inventory and more.  

Construction software can help handle business data, manage processes, and balance priorities, and free you up to focus on other priorities. There are many types of specialty construction software, including construction accounting software and construction project management software, estimating and takeoff software, as well as software for designing and planning construction projects, risk and safety software, and maintenance management software. But an all in one product, like construction ERP software, provides a solution for all the above needs as well as allowing your team to work more collaboratively. 

In our blog, we’ll define construction ERP software, outline why it’s important for your construction company, and show you how to identify and implement the software that’s right for you.  

Construction ERP software is Enterprise Resource Planning software designed for construction companies. That means it’s software designed to manage everyday business process and activities. An ERP system handles all your data in a centralized system, which means that anyone on your team can access the information they need depending on their role in the business. Construction ERP software provides a clear eyed view of your finances, productivity, and company performance in a single place.  

Within an ERP system, you’ll be able to manage all the different elements that help you get to project completion on budget and on schedule. Construction ERP software can help streamline many construction processes, like collecting labour and equipment time and assigning it to a particular job so you can track costs. ERP software also allows you to automate repetitive administrative processes like prefilling forms and tracing invoices by status, while also collecting and displaying key data for review as analytics or reports.  

1. Streamlined processes: Centralising your business processes within a single software solution means you can eliminate duplicate data entry and improve communication between departments and across your entire company. This saves time and reduces errors, leading to increased productivity and cost savings. 
2. Real-time data and analytics: Construction ERP software provides current data and analytics that can help you make informed decisions quickly. You’ll have up to date information on project timelines, budgets, and resources at the touch of a button, which means you can adjust your plans when necessary and avoid costly mistakes. Powerful reporting and analytics can also help identify areas for improvement and optimise your processes for greater efficiency and profitability. 
3. Automated workflows: Many construction ERP software solutions allow you to automate repetitive tasks such as invoicing, billing, and payroll processing. That will free up your team’s time for higher-value activities, which in turn will boost productivity and reduce costs. 
4. Improved communication and cooperation: Using a single system provides the same business information to everyone on your team. This means you can drastically reduce rekeying errors and eliminate delays caused by waiting for paperwork. By improving collaboration, you can also boost morale and job satisfaction among your team, which leads to improved productivity. 
5. Better financial management: A construction ERP system with comprehensive financial tools can help you control costs and manage cash flow more effectively.  With features like job costing, budget tracking, and up to date financial reporting you can reduce the risk of blowing your budget, while also generating plans for a profitable future. 

Although every construction company is a little different, here are five important features that you should consider when you are evaluating Construction ERP software.

1. Project management: Your ERP software should provide comprehensive construction project management capabilities, allowing you to stay up to date with project timelines, budgets, and resource allocation. Look for software that provides Gantt charts, resource allocation, and task management features. 

2. Accounting and financial management: Construction companies need to manage complex financials, including billing, invoicing, and budgeting. Make sure the construction ERP software you’re reviewing has robust accounting capabilities that can handle project accounting, job costing, and financial reporting. 

3. Prospecting and bidding: To remain competitive and win contracts, construction companies must provide consistent, accurate estimates. Look for prospecting and tracking features, with the ability to adjust budgets if necessary. 

4. Job and inventory management: Managing construction resources such as equipment, plant, and labour is crucial for ensuring project success. Your construction ERP software should include tracking and scheduling tools to ensure these resources are allocated effectively. 

5. Business intelligence and reporting: A key benefit of Construction ERP software is data analytics that can allow you to make informed decisions. Check to see if your prospective software system has flexible dashboards and reports that allow you to track key performance indicators and identify areas for improvement. 

Other features to consider might include document management and customer relationship management (CRM). Ultimately, the key is to find a solution that meets your unique business needs and helps you streamline your operations for greater efficiency and profitability. 

Software that’s made for the unique concerns of construction companies can help your employees work more productively so that you are able to complete projects more cost effectively. Implementing and utilizing a full system to automate work processes, improve communication between your departments, and provide solid financial management is an investment that will save you time and money.    

Release date: 18th April 2023