Best Construction ERP Software
Buyer's Guide
Whether your team is leading the production of a Fortune 500 organization, an apartment complex or some residential housing, it's critical to have construction ERP software that ensures flawless project management from start to finish. It should also gather the right project, revenue and client data.
This in-depth buyer's guide will highlight a construction ERP's key characteristics, functionalities, benefits, trends, software examples and more.
Executive Summary
- Construction ERP is an ERP solution tailored to meet construction needs and manage everything from calculating the costs of raw materials and labor to managing payroll, contractors, subcontractors, budgets and more.
- This solution's standard features include business intelligence (BI), customer relationship management (CRM), HR and payroll, project management and more. Its advanced features are financial management and equipment management.
- The perks of owning this software include planning optimization, simplifying project management, providing accurate estimates and having efficient data transfer and communications.
- A few construction ERP trends include AI and predictive capabilities, enhanced collaboration, software integrations and more.
- What Is Construction ERP Software?
- Deployment Methods
- Benefits
- Implementation Goals
- Basic Features & Functionality
- Advanced Features & Functionality
- Key Market Trends
- How to Begin a Software Comparison
- Cost & Pricing Considerations
- Best Construction ERP Software
- Questions To Ask Yourself
- Questions To Ask Vendors
- Last Words
- Additional Resources
What Is Construction ERP Software?
Construction ERP is a solution that enables you to manage contractors, subcontractors, accounting, attendance, payroll, productivity and more. Some programs cater to building information modeling (BIM), web-based construction management, requests for proposals and other facets.
Deployment Methods
Like most software, construction offers on-premise and cloud solutions. Both have pros and cons, but it's all in finding the deployment that aligns with your company's requirements.
On-Premise
On-premise deployment means the software is only accessible on one computer server housed in a single location or facility. If your organization conducts business in one primary region or you're a small to mid-sized company that wishes to operate locally, then on-premise is your best choice.
However, if your business suffers from human or natural disasters and your computer is damaged, your information and projects will be hard to retrieve. On-premise users should consider some data backup methods such as external hard drives or cloud storage.
The Cloud
Cloud software, which contrasts with on-premise, means that the solution is accessible through an internet-based server.
Features, data storage and other program functionalities are available anytime, anywhere on any device with a strong internet connection. If your company has several national or global locations that you have to travel to, you can easily access your program on a mobile device. These devices include phones, tablets, laptops and more, so you'll stay in the loop on all projects.
Cloud solutions also offer various security tactics to protect data, such as data encryption, two-step authentication, access control and more. Whether you choose on-premise, cloud or a hybrid deployment, it's best to pick the option that best accentuates your company.
Benefits
Optimizes Project Planning
Similar to weddings, construction projects need proper planning. You have to ensure you have the correct raw materials, the right amount of workers and equipment and that all of your contracts are squared away. Proper planning ensures proper execution. A project planning apparatus can verify all aspects of a construction project are handled with the utmost care so you can effectively carry out production.
Facilitates Project Management
Managing and sharing every piece of project data can be overwhelming if you don't have the proper tools. A project management attribute can easily track and share project management details with other contractors, CEOs and more.
Crafts Accurate Estimates
Working with accurate cost proposals in the preliminary construction stages can help businesses know how much they need to spend on raw materials, equipment, labor and more to ensure the project goes smoothly from start to finish.
Expedites Data Transfer and Communication
Utilize data transfer and communication to collaborate and keep others in the loop. You also drive clearer communication methods and expedite the data transfer process.
Reinforces Decision Making
Leverage this program to gather valuable KPIs such as safety/incident rate, number of accidents per supplier, worker satisfaction, turnover rate and employee downtime to make well-informed decisions about employees, projects, finances and more.
Enhances Marketing Strategy Executions
In-depth analytical tools permit you to craft more meaningful marketing tactics for your customer base. One example could be to leverage more social media-friendly ads to reach out to those who constantly utilize applications like Facebook, Twitter, Instagram and Snapchat. You can also detect client patterns, satisfaction rates and revenue over pre-set ranges.
Implementation Goals
|
Goal 1 Real-Time Access for All Devices |
Access cloud construction ERP on all devices from any location with a solid internet connection. Allocate invoices, pay employees, manage projects and more on the go. |
|---|---|
|
Goal 2 More Accurate Cost Estimation |
Utilize real-time data and reporting to craft practical project and job estimations. If your team wants to build a new restaurant but can't decide if you should develop it by the park or on the street with other apartments, you can evaluate costs and area to make better choices. |
|
Goal 3 Streamlined Project Management |
Superintending every facet of a construction project is every lead contractor's dream. A practical project management appliance ensures you monitor each project's step from start to finish. |
|
Goal 4 Better Planning and Resource Allocation |
Effective planning can mean the difference between a win and a loss with clients. These planning and resource allocation elements ensure you're utilizing the right amount of workers, equipment, materials and more to complete jobs. |
|
Goal 5 Effective Scheduling |
Implement this centralized module to plan the most intricate jobs and stay on top of projects and deadlines. |
Key Features & Functionality
|
Financial Management and Accounting |
Administer invoices, bills, work orders, accounts receivable and payable and more with a proper financial management apparatus. You can also purchase a separate accounting solution to streamline all of your bookkeeping necessities. |
|---|---|
|
HR/Payroll |
HR and/or payroll tools simplify how you manage employee information such as medical records, certifications and licensing, training, time tracking, pay stubs and more, by storing them all in a centralized location. You can also look at clock-ins and clock-outs, hours worked, PTO and sick days used. You can also buy separate HR solutions or payroll applications. |
|
Document Management |
Manage every construction document type in one hub, such as contract forms, project manuals, floor plans, plumbing designs, electrical drawings, demolition sheets and more. |
|
Project Management |
Govern all project stages from start to finish with an exemplary project management tool. This accessory tracks a project's progress, supervises timesheets and pinpoints incidents that can cost businesses large revenue losses. |
|
Obtain a snapshot of your resource inventory from workers to equipment and tools needed to complete a task. Some inventory/resource management accessories notify you when you're running low on items. You can also establish minimum amounts of certain stock and receive alerts when you hit these numbers, so you won't run out entirely. |
Advanced Features & Functionality
|
Reporting/Business Intelligence (BI) |
Oversee valuable KPIs such as cost vs. budget, project progress and milestones, complaints, incidents and accidents, productivity and labor, profits and more with the proper BI module. You may also invest in a separate BI system and ask vendors if it can merge with your construction ERP solution. |
|---|---|
|
Scheduling |
Construction scheduling software or standalone modules enable you to maintain and optimize project planning and progression. It offers service, project and budget management, bookkeeping, reporting, job scheduling and inventory management. |
|
Cost Estimation |
Evaluate and project accurate expenses for renovations, interior, external and reclamations. This software enables you to cipher time and materials, overall costs, actual vs. predicted fee comparisons and more. |
|
Facility and Equipment Management |
Supervise all of your facilities and equipment, such as dump trucks, bulldozers, cranes, cement and asphalt trucks, busses, trailers and more, in one centralized system. |
Key Market Trends
In addition to purchasing software, here are some various construction trends to consider implementing. These trends include cross-platform functionality, artificial intelligence (AI) and predictive functionalities, more personalized solutions, data gathering and more.
Integrations and Cross-Platform Functionality
Doing more is a pinnacle that all industries want to achieve. Construction is no exception. Contractors, leads and businesses want to reach more goals with the available tools. The best way to do this is to fuse construction programs with other software such as accounting, CRM, BI, HR, payroll, etc., so everything is accessible in one hub.
It's also valuable to access information on mobile devices and wearable tech (i.e., smart glasses, hard hats, boots, watches and more). Research and Markets expect the global wearable technology market to reach $118.16 billion by 2028.
Enhanced Collaboration
Construction companies work on several projects with various clients simultaneously. Companies need better collaboration methods to streamline communication, ensure efficient project management and relay vital information. MarketsandMarkets estimates the global enterprise collaboration market size will reach $85.8 billion by 2026.
Online video conferencing, data sharing and user permissions are a few examples of effective cooperative modules that expedite productivity while keeping everyone on the same page.
AI and Predictive Abilities
AI is the norm of our everyday lives, with Alexa, Google and Siri providing us with information, scheduling appointments and controlling our homes. It's also taking over significant industries to streamline production, such as manufacturing and accounting. Mordor Intelligence forecasts the AI construction market will reach $2312.8 million by 2026.
AI and predictive analytics can benefit construction in various ways. For example, you can embed predictive analytics in machinery and receive notifications through the internet of things (IoT) on maintenance, status and other analytics to maintain machinery, so it doesn't cause downtime.
AI and predictive capabilities are also helpful in scheduling and contingency planning through what-if scenarios and analytics to pinpoint productivity patterns.
The Internet of Things (IoT)
IoT, in a nutshell, consists of internet-based sensors that you attach to items for real-time information relays. When you connect these devices to your bulldozers, cranes, drones and other equipment, you can manage their status and when to perform preventive maintenance to avoid unexpected downtime. IoT, like AI, AR and VR, is a popular trend in other sectors, such as accounting, manufacturing and more.
MarketsandMarkets predicts the IoT integration market will reach a value of $9.2 billion in 2027.
Although COVID-19 has left the construction sector with fewer industry jobs, more work safety adaptations, supply chain interruptions and decreased global revenue, implementing these and other technological trends that align with your business necessities are vital to remaining relevant.
Software Comparison
The best way to conduct a software comparison is to gather all the ideal qualities you're looking for in a solution (i.e., deployment, modules and more) and see how each solution measures up. You can also review our thorough comparison guide and sophisticated requirements template to understand the market's top construction programs and features.
Cost & Pricing Considerations
Choosing the best construction ERP is no easy feat. Before you begin your search, there are specific considerations to address.
What's Wrong With Your Current Construction Procedures?
What problems arise with your construction operations? Are you not allocating resources evenly? Are you having trouble maintaining and finding the correct reports? Is it hard managing your budget and revenue?
Answering these and other questions will help you know why you need construction ERP software and give you an idea of what tasks you want it to perform.
How Much Do You Want to Spend?
New ERP costs anywhere from a couple of bucks to thousands of dollars, depending on the seller. Before browsing for new solutions, it's best to establish a budget and determine the cutoff price. Another way to ensure you stay within your budget parameters is to ask vendors if they offer subscription plans or one-time payments. Then, you can decide which method is best for you based on features, licensing, deployment and more.
How Big is Your Business?
Are you a small company or an enterprise? ERP can cater to different sizes. As you add more employees and resources, your software can provide scalability. You don't want a small business system if you're hoping to grow and become a global enterprise.
Conversely, you don't want a gigantic full-scale program for a company you wish to maintain at a mid-sized level—size matters, especially when perusing new software.
What Features Do You Need?
BI, CRM, project management and HR could be what you need. Then again, you might need more modules we haven't even covered, such as bidding, material requirements planning and risk management. The idea is to develop a list of features and requirements that match your construction practices and find a program that contains these modules.
The Best Construction ERP Software
Our research team took the time to find and gather construction ERP software examples to exemplify vital features and benefits. These five solutions streamline your practices and ensure your business runs smoothly.
CMiC
This construction ERP software offers extensive project management. It centralizes departments in one suite for automatic task management. Vital features include accounting and finances, project control, schedule management, document control and drawing management.
An example of CMiC's interface.
Procore
Manage all project sizes, simplify communications, trace economics and resources and superintend every project stage from development to allocation with Procore. Contract management, project management, time and material tickets, storage and bid management are some notable features.
A preview of Procore.
ConstructionOnline
Leverage this construction ERP to schedule, predict and govern projects. It's suitable for mid-sized and large organizations. You can allocate and review assignments with Gantt charts. Top modules include sales management, financials, communications, schedule management and project tracking.
An example of ConstructionOnline.
Buildertrend
Buildertrend facilitates straightforward business practices for builders, contractors and customers. It's available for iOS and Android devices and employs cloud or on-premise deployment. Top features include bid requests, estimations and proposals, to-dos, WIP reports, payment processing and budgeting.
A preview of Buildertrend.
Sage 300 Construction
Sage 300 Construction is a cloud-based solution that simplifies and assorts accounting, real estate, project management and more in one interface. Its top features include document management, real estate management, assembly databases and risk management.
An example of Sage 300 Construction.
Questions To Ask Yourself
Use these questions as a starting point for internal conversations:
- What's wrong with your current construction practices?
- How much are you willing to spend on a construction ERP?
- What features are most needed?
- How big is your company? Are you looking to expand it?
- Should you invest in an all-in-one solution or an ERP that integrates with your existing software?
- Who will be the primary user(s) of this solution?
- Do you want an on-premise or cloud program?
Questions To Ask Construction Vendors
Use these questions as a starting point for conversations with vendors:
About the Software
- Is this solution on-premise, on the cloud or both?
- Is this solution suitable for a company my size?
- Do your cloud solutions come with security measures like data encryption, two-step authentication, access controls and more?
- Is the program easy to use and learn?
- Does this software merge with my current solutions?
About the Vendor
- Have you previously worked with companies similar to mine?
- How many successful implementations have you had in the past three months?
- Are you familiar with the sector that my company serves?
- How effective is your support team?
- Do you offer subscription plans or one-time payments?
- Do you offer demos or free trials?
- Does your software also offer CRM, accounting, HR and other tasks?
- How long is the implementation process?
Last Words
Finding the right construction ERP software can be as tricky as finding your favorite bakery in the mall without a map. If you don't know what you're looking for, it's easy to get overwhelmed. Thankfully, this buyer's guide offers detailed information about standard features, benefits, trends, software and more, so your navigation is much more comfortable.
Top 10 Construction ERP Software Leaders by Analyst Rating (of 58 products)
(of 58 products) GET THE IN-DEPTH REPORT
Products found for Construction ERP Software (Page 2)
Narrow Down Your Solution Options Easily
closeApplying filters...
Search by what Product or Type or Software are you looking for