Enterprise resource planning (ERP) is essential for many industries. It is a powerful technology platform that can help organizations manage all business processes. Construction companies regularly have a variety of processes to manage and require comprehensive understanding of their finances with a focus on automation. Determining the right technology for your construction business is the key to success and growth.
What is Construction ERP Software
Consolidate and streamline project lifecycles and financial management with construction ERP software. It is essential for construction projects to keep on track and hit all deadlines in order to be successful.
ERP systems for construction companies assist in managing contractors and sub-contractors, tracking company financials and accounting, and simplifying operations and business processes. ERP software for the construction industry helps companies understand project profitability, helps manage cash flow and adapt to change, and mitigate risk.
Top Construction ERP Modules
Construction companies should consider the following modules when determining what ERP software is right for them:
A financial management module allows you to streamline your financial operations and continually track any incoming or outgoing funds. It is important for the financial management module to be integrated with other modules in your stack, like project management for example. Improve financial visibility of your company overall with the ability to drill down into specific jobs, fixed assets, expenses, etc.
Centralized cost tracking for projects is a major pain point in the industry. A project costing module centralizes all costs and seamlessly links them to projects. When all costs are tied to a project you have access to accurate and up-to-date insight into actuals, earned values, estimate to completes, and more, for any given project.
Seamlessly bid, win, and contract with a contract billing module. Effectively handle multiple billing situations like time and material, milestones, progress, percent complete, change orders, and more. Gain a better understanding into a contract status in real-time, specifically billables, billed, receivables, earned revenue, taxes, etc. Lastly, manage complex project terms in areas like contract amounts, invoice formats, etc.
HR & Payroll
One of the biggest and most time-consuming expenses for any construction company is labor and equipment. This module is extremely important for tracking and monitoring actuals and allows you to streamline your HR processes and reduce your operational costs. Acquire, place, and retain the right people for the right jobs while increasing employee satisfaction and productivity. Happy employees are more productive, and in turn, your business will continue to thrive.
A procurement module supports all operational processes and logistics from managing inventory to fulfilling material orders. Quickly and easily submit a purchase order for labor with the integration with sub-contract management.
Workflow processes can be a major pain point for any company but especially for a construction company that handles many invoices daily. This module is particularly important for managing supplier invoices. Easily route your invoices to the correct person for quick approval and payment. Cut down on the approval process with executive level personnel and pay invoices on time.
Health & Safety Management
The health and safety of your employees is of the utmost importance. This module is a comprehensive solution and enables you to record, investigate, and analyze all types of incidents: people, equipment, inspections, etc. Depending on the ERP software you choose, you can track any incident on site by taking photos and uploading to the module. Another great feature that some software options offer is the ability to obtain a safety scorecard and OSHA reporting for your company.
Ensuring your construction company meets all environmental standards is easier with this module. Increase efficiency and reliability of data collection, comply with regulations, and improve environmental performance. Certain software options have reporting and analytics tools built in, aiding in the decision-making process.
Is it Time for Enterprise Resource Planning Software?
Five Questions to Ask if Your Company is Considering ERP
Capital asset management is important for ensuring your business and jobs run smoothly without delay. The right ERP system makes managing your equipment easier than ever. Knowing where equipment is, what job it’s being used for, and when it needs service helps to optimize it’s use and extend its lifecycle.
Reporting is key to making the best business decisions for your company. A reporting module gives you easy access to reports for all areas of the business. Real time operational reporting empowers you to make data-driven decisions for the growth and success of your business.
The implementation of these modules is vital for any ERP system for construction. Incorporating the right operational, management, and accounting tools is key to the success of any construction project. Unexpected circumstances will always occur, but with a properly integrated enterprise resource planning system these challenges can be taken in stride. In turn, contributing to the success and growth of your construction business.
Top Features of Construction ERP Software
- Eliminate time consuming processes with streamlined financials and reporting
- Stay on budget and hit deadlines with project management functionality
- Automate billing and other accounting processes
- Directly tie project costing with multi-level general ledger coding for streamlined accounting
- Track progress, change orders, etc.
- Bid, win, and contract in one easy process
- Streamline invoice approval process
- Make job forecasting a science, not an art
- Accurate and detailed visibility of job financials
Oracle ERP Software for Construction
JD Edwards EnterpriseOne
JD Edwards ERP system provides support for all processes in your construction business. This ERP software system offers special features designed and built specifically for construction companies. Easily access the data and information you need to help your business thrive with maximum flexibility, including on-premise, cloud, or hybrid database options. Plus, all the modules above are included in the JD Edwards EnterpriseOne system.
Fusion Cloud ERP is focused on automation and simplifying your business processes for quick and easy strategy implementation. This system offers modules in financials, project management, procurement, and compliance to help you respond to an ever-changing business environment within the construction industry.
NetSuite is a cloud-based ERP solution that allows you to manage operational and business processes of your construction business from anywhere in the world. NetSuite offers construction-specific modules, including job costing, project management, scheduling, and more.
The construction industry is amid a digital transformation. Streamlining operations with technology is at the forefront of this evolution. Industry challenges centered around pain points in areas such as project management, health and safety, and productivity have been met with new, modern technologies. These enhanced technologies and software provide construction companies with better insight into their financials, assets, timelines, and workforce setbacks. Take on the modern era of construction with software integration that reduces costs, streamlines operations, and keeps projects on track.
The right ERP for your construction company provides the opportunity for growth, allows you to adapt quickly to change, and delivers visibility through all areas of the business. Having this increased visibility facilitates quick, precise, and meaningful decision making.