Today, companies from the construction business and related industries must be ready to remain successful in such challenging market conditions. That is because using material resources effectively and ensuring the appropriate level of flexibility in project management are essential.

The increasing internal and global competition, numerous administrative tasks, and high demand to innovate require construction companies to utilize specific software solutions. It means that they need to simplify different comprehensive construction operations. Thus, adopting construction ERP software can be an efficient approach for organizations to stay at a competitive edge.

So what is enterprise resource planning (ERP)? How can it solve the existing problems in the construction business? And how to choose the best ERP solutions for your construction projects? Let’s find the answers below.

Construction site representing industry challenges

What is ERP?

Enterprise Resource Planning (ERP) software serves as a critical business tool that allows for robust data analytics using information from different processes. These processes can include accounting operations and financial management, contractor management, Human Resources (HR) management, inventory tracking, project management, enterprise asset management, bid management, Customer Relationship Management, etc.

Key Features of ERP Solutions

Best ERP software solutions provide the integration of distinctive software systems into one complex tool. Thus, construction managers get an opportunity to manage the full scope of their projects efficiently. Apart from the processes mentioned above, it covers:

  • Cost estimation
  • Purchase Order (PO) management
  • Task scheduling
  • Contract management
  • Inventory management
  • Facility management
  • Supply chain management
  • Reports
  • Document management
  • Workflow management
  • Performance measurement
  • Payroll processing

What is ERP for construction?

ERP software for the construction industry is considered a specialized ERP system created to satisfy the unique requirements of construction businesses. Such ERP systems involve managing contractors and subcontractors, tracking financial operations, performing accounting tasks, and conducting other service activities using one central database.

Key Features of Construction ERP Software

When looking for an effective enterprise resource planning system, construction companies should consider the following features:

  • CAD interface
  • Accounting options
  • Enterprise asset management
  • Financial operations
  • Payroll processing
  • Contractor & subcontractor management
  • Logistics and transportation
  • Project planning
  • Workforce management
  • Inventory tracking
  • Workflow management
Functions of ERP system for construction industry

How ERP Solves Problems in the Construction Industry

A robust ERP for the construction company provides different integrated solutions supporting each aspect of the business. After learning the key features of the right construction ERP software, there is a need to analyze how it can address the existing industry-related issues.

Workflow Visibility & Streamlining

Before the appearance of an ERP solution for the construction industry, cooperation between different work sites required too much time and effort. For instance, if you wanted to get updates on relevant operations or processes, you must have called or visited the building site physically. Also, if you had issues with your production partner, it could affect your entire business since there was a need to make numerous phone calls and site visits.

However, modern construction software has improved workflow visibility significantly. Today, even while staying in your office, you can view a specific database using your cloud-based ERP system to obtain real-time updates from the construction site.

Cross-Department Cooperation

Each department contributes to the same construction software. Thus, there will be no data duplication, and you will not struggle with issues when transferring company data from different applications. Thanks to efficient collaboration tools, you can enhance cooperation between departments and involve all managers in this process. That also includes on-site project managers who use mobile technology to ensure that the required information is always up-to-date, timely, and accurate.

But also, the increased responsibility results in the increased commitment to project tasks. So, you should maintain a collaborative environment both in your office and on-site.

Risk Management & Data Security

Using cloud-based ERP solutions allows for minimizing risks and improving data security. That is because cloud computing provides significant redundancy and robust features of data protection. Besides, the appropriate risk management practices protect organizations from potential difficulties related to updating separate construction accounting or analysis software. Since such solutions constantly evolve, it is critical to adjust to such evolution.

Customizable Options

Implementing ERP for the construction industry appropriately means that you can also cater to the changing requirements of various sectors. It is beneficial for different types of construction companies, including contractors/subcontractors, maintenance and service businesses, housebuilding, and civil engineering organizations.

The best ERP solutions allow users to create dashboards reflecting the existing roles of managers. A robust construction ERP system also provides them with access to the necessary data or notifies them about multiple scheduled tasks and various project details.

Business Intelligence & Data Analytics

Most ERP solutions are accessible to project managers and customers using the information to analyze the project’s progress and create current reports and forecasts. ERP systems provide on-site managers with improved data visibility and promotes them to make critical decisions at hand. With robust business intelligence, you can notice early signs of issues and address them effectively.

What construction ERP software to choose

The key factor is understanding where your construction company fits within the relevant industry. You may work with numerous contractors, subcontractors, plumbers, electricians, and other professionals critical for your construction project. Of course, it can be hard for single software solutions to handle all the necessary diverse requirements efficiently. But there are several construction ERP systems available on the market you should consider.

Acumatica

Acumatica is among the best construction software solutions. This ERP for construction is widely used by residential and commercial projects. It offers the latest examples of project reports, contracts, budget sheets, plans, invoices, purchase orders (POs), specifications, etc.

That allows personnel and contractors to stay informed on recent updates and communicate using smartphones, tablets, or PCs. After all, you will get accurate data thanks to utilizing Acumatica as your ERP for the construction industry.

Viewpoint

Viewpoint from Trimble offers construction accounting software serving as the core of their enterprise resource planning. For example, cloud-based ViewpointOne provides an efficient combination of ERP options, project management tools, and specific field products. This construction ERP contains modules aimed at various construction sectors, including civil engineering.

Finally, you can integrate Viewpoint with other helpful Trimble instruments. Among the most popular ones for the construction industry are optical measurement and GPS systems.

Epicor

As an ERP suite of useful products offering optional modules, Epicor is suitable for construction companies and organizations from other industries. You can utilize the tool on-premises or in the cloud environment as a SaaS construction ERP system. Epicor covers ERP for construction, project management features, CRM functions, and estimating options. Due to its flexibility and easy setup, companies use Epicor to satisfy their unique business needs.

Dynamics

Microsoft Dynamics SL represents a large Dynamics family of high-quality ERP software offered by Microsoft and is utilized by project-based businesses. Microsoft Dynamics SL is used worldwide, and its major strengths depend on estimating and project costing. Such construction software has optimal modules enabling companies to tailor the tool to their requirements. Besides, this construction ERP benefits from the power of the whole Microsoft Office suite.

Penta

Although Penta is often regarded as an effective construction ERP platform for subcontractors, many other construction companies utilize it for their own business needs. As one of the best construction ERP software, the tool offers robust accounting and payroll features, along with project management and engineering management functions. Lastly, Penta is helpful when it comes to managing equipment.

Maestro

Maestro’s target audience involves general contractors, trade contractors, companies dealing with drilling and mining, concrete manufacturers, etc. Having started with accounting features and project management tools, the platform extended its core modules. Now, it offers billing, payroll, estimating, and many other critical modules to select. So, construction companies have a chance to tailor Maestro to their specific requirements.

ERP solution for construction industry from Exoft

At Exoft, our experienced software engineers can develop custom ERP for the construction industry and infrastructure, improving project data visibility. ERP solutions created by our experts help construction companies with cost analysis and allow for monitoring project profitability, measuring performance, and tracking manpower operations. After all, thanks to better, customized visibility and specific reporting tools, you can always focus on the target.

In addition, the Exoft team can integrate cloud-based ERP solutions with the necessary construction accounting and estimating software. That boosts productivity and revenue and enhances staff communication, data processing, etc.

Finally, the most critical features of our construction ERP systems include:

  • accounting & financial management
  • bid management
  • cost estimation
  • inventory management
  • project management
  • project scheduling

Conclusion

Construction ERP software makes it possible for construction companies to avoid many manual time-consuming tasks and various labor-intensive business processes. Applying the best ERP software allows for controlling expenditures for raw materials and staff, reducing IT costs, eliminating downtime, and meeting project deadlines. Ultimately, a top-notch ERP system for the construction industry can optimize general construction project operations, including financial management, custom relationship management, sales management, supply chain management, and many more.

Are you considering building your own ERP construction software? Contact us and discuss your construction project with one of our experts.