ERP Software for Construction Industry

What is ERP Software?

Accounting/financial management, contractor management, equipment/inventory management, human capital management, project management, vendor management, bid management, Customer Relationship Management (CRM), scheduling, submittals, asset management, and other construction-related processes are just a few examples of business solutions that use data from various construction processes to provide powerful analytics. ERP Software for Construction Industry

Features of ERP Software:

Construction ERP software integrates disparate software systems into one comprehensive solution, so construction managers can have tools to effectively manage the full lifecycle of a project, including:

• CRM
• Cost estimation
• Bid management
• Contract and Purchase Order (PO) management
• Project scheduling
• Inventory management
• Facility and equipment management
• Reporting
• Document and workflow management regarding drafts, RFIs and RFPs
• Productivity/performance monitoring
• HR and payroll processing

What is Construction ERP?

An enterprise resource planning (ERP) system created exclusively for construction enterprises is known as a construction ERP. Project management, project financials and accounting, project and portfolio analytics, resource and asset management, general and subcontractor management, payroll, and other essential business operations should all be managed by a construction ERP.

Construction ERP and construction business software have been around for several years, but most systems do not cover the core of a construction company’s business process needs, which is managing projects. Furthermore, the top-tier ERPs (like Microsoft Dynamics for Construction) simply do not offer a viable solution for construction companies. For this purpose, Project Business Automation was created to provide a comprehensive solution to project-based companies, especially construction firms, that encompasses the majority of their business processes.

6 Main Benefits of ERP Software in the Construction Industry:

1. Optimizing Planning:

Improper planning within the framework of a construction company results in the completion of projects that are below par and potentially the company’s demise. As a result, contractors may suffer significant losses in the form of labour expenses and clientele as a result of missing deadlines.

Planning for the necessary raw materials, efficient labour utilisation, architectural design, and timetables is essential for optimum resource allocation. Additionally, integrated Construction ERP software can be used to implement plans for budgetary allocation and spending control.

The use of construction ERP software can also offer advice on how to enhance construction performance. The percentage of progress contractors receive for their work can be calculated using ERP software. Additionally, bonuses, overtime, and basic salary can all be managed by construction ERP software.

2. Streamlining Project Management:

In the construction industry, distributing tasks and keeping track of project progress across multiple work locations has always been difficult. Construction managers may simply keep track of the progress of numerous tasks with the use of an ERP system. It can track each project’s progress, set up milestones, allocate tasks to the appropriate team members, and do a variety of other tasks.

 Contractors may monitor the amount of time each employee spends on each task thanks to real-time data. Additionally, being able to also makes it simpler for them to bill customers.

3. Facilitating Cost & Revenue Estimation:

The majority of construction firms engage in contractual relationships with their customers. They must submit a bid for the project with their projected expenses before receiving the tender.

ERP software can be used to calculate the precise estimates needed for labour, raw resources, designs, and project time. so that the difference between the actual and predicted costs won’t be too great. Because of this, the construction ERP software also enables you to know the income and profit loss from each project.

4. Simplifying the Exchange of Information:

Larger construction firms manage multiple clients at once. In this approach, it makes information transmission inside the company laborious and difficult. Excel spreadsheets and PowerPoint presentations are exceedingly wasteful and impracticable for managing and assembling data for many activities, and they are also not safe.

Through resources and firewalls that ensure the best possible data security, ERP software facilitates data transmission. Contractors can also set constraints on their data, specifying which information can be shared with the client or seen by workers.

5. Improving the Decision-Making Process:

When making decisions, a centralised system gives a complete picture of the issue, which increases efficiency. The ERP software aids in data extraction if employees need to correlate information from several sources. Additionally, it might offer pertinent standards that must be adjusted prior to completing a request.

6. Increasing ROI:

Naturally, contractors want to gradually raise their ROI. ERP software can assist in the process of attaining that. ROI can be quantified in terms of money as well as other benefits. The construction sector inevitably needs an investor to finance their projects because of the high value of those projects.

Before a deal is made with investors, however, contractors will undoubtedly see the worth and advantages of bringing in investors as financiers.

Construction ERP Software:

1. Acumatica:

Founded in 2008, Acumatica provides cloud and browser-based business management software designed for small and mid-sized businesses. Acumatica’s Residential & Commercial Construction Software provides users with an easy-to-use cloud-based solution to help keep projects on track and drive growth by ensuring that managers, subcontractors, supervisors, and customers are on the same page.

Features include robust financial reporting, job cost accounting, integrated payroll functionalities, project billing, inventory management, business intelligence, and more.

2. CMiC:

CMiC offers a variety of robust project management, construction, and ERP solutions. With CMiC’s enterprise planning solution, companies can automate back-office functions and streamline field operations with a suite of capabilities tailor-made for the construction industry.

Those capabilities include various resource planning tools i.e., interactive schedules, dynamic timelines, user-friendly interfaces, real-time status updates—alongside financial forecasting, opportunity management, and other features to help users run their business.

3. Computer Guidance Corporation (CGC):

Computer Guidance Corporation (CGC) provides commercial contractors in North America with cloud-based construction ERP and management applications for projects across the industrial highway, HVAC, electrical, oil, mechanical, and other markets.

The company’s CMS Cloud Construction ERP solution includes a suite of apps to help commercial contractors of all sizes manage their finances and overall operations. Specific features include payroll management, reporting, accounting, project-wide communication tools, content management, and more.

4. IFS:

IFS develops and delivers ERP software for customers worldwide who manufacture and distribute goods, maintain assets, and manage service-focused operations. IFS’s products are user-friendly, flexible, and modular in design. The IFS Applications business software provides increased ERP functionality, including CRM, SCM, PLM, EOI, enterprise asset management, and MRO capabilities.

With IFS, construction companies can utilize a project-based ERP system capable of helping them control and determine schedules across functions, coordinate departments, and use high-level visibility and transparency to maintain goals.

Conclusion

An enterprise resource planning system designed specifically for the demands of construction enterprises is known as construction ERP software. The management of general contractors, subcontractors, financial management, construction accounting, payroll, and service operations should all be included in these systems in a single database.

The way these ERP systems or programmes interact with business operations is the crucial and lone distinction between them. Due to subtle differences in how certain industries operate, several modules are different from one another. Building structures, planning, mapping, acquiring equipment, allocating labour, calculating building costs, budget planning, resource planning, etc. are among the essential operations in the construction industry.

 Frequently Asked Questions 

1. What are the three leading ERP systems?

• NetSuite ERP.
• Odoo.
• Sage Intacct

2. Which software is used in construction?

GanttPRO, BIM 360, Acculynx, Jonas Premier, Procore, CoConstruct, Buildertrend, Knowify, ProContractor, PlanGrid, Projectmates, eSUB Subcontractor, WorkflowMax, SiteMax, BuildTools, Radar, Jonas Enterprise, CommittedCost are some of the Top Construction Project Management Software.

3. What is ERP in construction?

Enterprise Resource Planning (ERP) system is an Information Technology (IT) business solution that enables construction companies and their contractors to manage capital projects effectively and efficiently throughout the project lifecycle.

4. What is an example of an ERP system?

ERP products like Netsuite, SYSPRO, and Epicor allow users to automate time-consuming daily tasks.