As urbanization steadily increases and more people migrate to cities for a better quality of life, the construction industry has become inundated with projects to improve infrastructure, increasing the need for construction ERP, and for ERP software on the whole. Even the smallest construction projects can be tedious and time-consuming (such as renovating your home, for example) so large-scale projects done for enterprises are bound to introduce many complexities that must be properly managed to complete a project on deadline (and on a budget).
Due to expanding cityscapes, corporate construction projects are getting larger and more intricate. Profit margins are tight in this industry, so even a single extenuating circumstance is more than enough to create financial losses and project delays. Considering the current state of the construction industry and looking forward to what the future holds, how can construction professionals stay on top of evolving technologies, and manage projects profitably? The key lies in identifying where lags have been occurring and seeking possible solutions to rectify these problems.
From a technology standpoint, the right construction ERP software can help improve efficiency and drive profits by streamlining a wide variety of business operations. However, generic software applications may not always be able to meet the needs of a specialized and demanding market sector such as construction.
That is why ERP business software providers such as ComputerEase focus on a single niche, and in this case, it’s exclusively for the construction industry. Other mainstream providers such as SAP S/4HANA and Sage Intacct also pay prime focus to this sector offering construction ERP in a more futuristic sense, by speculating on prevailing trends and creating software that will complement what is predicted for the future.
Trends in the construction ERP industry
Just some of the technologies that have been shaping the construction ERP industry:
- Artificial Intelligence and its predictive capabilities have transformed how companies scrutinize resources, budgets and data. The construction ERP industry is no exception, and programs tailored for this sector incorporate AI into operations such as project management in order to foresee everything from costs to timelines.
- Business Intelligence also closely ties in as gathered data is analyzed based on established parameters. Reporting on patterns in construction operations aids key decision-makers, while preparing for any incidents that may have a negative impact in the future.
- Internet of Things and its associated range of devices is something that is gradually gaining traction in construction sites. In fact, numerous applications already exist, from remotely operating machinery to tracking the well-being of construction workers via wearables.
- Augmented Reality is something that goes hand-in-hand with IoT, by offering realistic experiences via smart equipment. For example, interactive goggles worn by workers can display guides right in front of their eyes (literally!) or provide machine operators the real-time instructions they need to handle a piece of equipment.
What is construction ERP software?
A construction ERP software is a specialized system for handling end-to-end business processes that are specific to the needs of the construction industry. Construction ERP programs offer management of contractors and subcontractors, construction payroll and accounting, financial management, and service options, all within a singular database and console.
Companies in search of a construction ERP solution must look for a system with:
Benefits of construction ERP software
A well-designed construction ERP should offer integrated solutions that support various aspects of the construction business, from project planning and control to revenue estimation. Besides enabling consolidated data integration, a sophisticated construction ERP has the following benefits:
- Real-time data insights using a construction ERP software streamline project management and make it easier to track task progress, staff’s performance and billing clients.
- An integrated construction ERP optimizes planning to make provisions for expense control and budgetary allocation. This way unnecessary downtime and contract issues can be avoided.
- Using firewalls providing extra data security in construction ERP software, it is simpler to put restrictions on data sharing and efficiently exchange certain business information.
- Using a construction ERP can positively impact your ROI.
- You can accurately estimate the cost of design, raw materials, and labor using a construction ERP. This way the actual costs won’t deviate much from the projected costs, and you will have a precise idea of expected profit or loss for each project.
Best construction ERP software for building firms
The best construction ERP software needs to meet your goals of adopting an ERP in general, among fulfilling other key operations that are exclusive to the construction industry. This is why certain systems we recommend in our top construction ERP roundup are:
There are several systems you can consider on the basis of ERP software reviews if a company is offering affordable construction ERP or the features a software contains to fulfill your business demands.
Features of construction ERP software
Construction ERP software applications streamline and centralize the whole construction project wheel of life so that projects can be kept on track and maintained. Updated and new ERP systems are used in all industries, but some are specifically built for the particular needs of construction companies to help manage financials, contractors, and service operations.
With construction ERP software, construction companies and project stakeholders can depend on a consolidated core system that merges all diverse parts of a construction project, scrutinizes compliance and regulatory guidelines, and controls supply chain data into an individual workflow.
Implementing construction ERP software
Implementation of ERP software can help businesses oppose downward trends and expand while the competition decreases.
If you implement accounting ERP software, ERP management software, or a project planning ERP in their respective departments, you will experience growth in your business. Although the pandemic may have slowed down several industries, construction is a field that has appeared to get busier, particularly as the world gradually opened up to normalcy.
How to choose the best construction ERP software for your business
While selecting the right construction ERP software for your business, the developer must be concerned about controlling the costs. Similarly, the business will employ contractors and subcontractors to perform almost all of the actual construction. When it comes to choosing a construction ERP for your firm, these are some key considerations a business should use during the decision-making process:
- Available deployment options
- Certain business process requirements
- Systems selection approach
- Industry-specific solutions
Whether you’re a general construction company, civil or heavy engineering construction company or a specialty trade contractor, your construction ERP software should help lower costs, decrease project completion time and automate more business procedures than your previous ERP system.