The Features & Functions of Implementing Construction ERP
ERP Software / September 2024
An ERP for construction and engineering firms offer a more streamlined management workflow by integrating on-site and off-site back-office functions.
What Is Construction ERP?
Construction ERP Software is an integrated cloud-based system designed to improve the operational workflow for construction and engineering firms.
It does this through modules such as project management, site management, contractor management, safety control, and finance management (bid management, estimating, payroll, etc.).
Construction and engineering operations openly highlight industry challenges such as managing risk, quality control, compliance, and time management (35% of professionals lose over 14 hours a week on non-productive activities). Three main challenges that the construction industry faces are:
- Meeting project deadlines/schedule
- Keeping project spending within set budgets
- Meeting set specifications from architects/owners
To combat these challenges, construction firms often use manual methods and spreadsheets. However this combination is often prone to errors, lacks room for growth or scalability, and can be more damaging to business operations.
The alternative is a modern, cloud-based, construction ERP system.
Packaged as ERP for engineering, construction, and infrastructure, Construction ERP Software improves the collaborative workflow of construction operations and tackles these challenges head-on.
Find the Right Construction ERP Software That Matches Your Site Management and Back-office Requirements
What Are Your Key ERP Requirements?
9 Key ERP Construction Features and Modules
1. Site Management
Enterprise Resource Planning systems promote greater construction site management by collecting real-time data on plants and assets, inventory, labour costs, and more. This allows data to flow throughout all business departments.
2. Bid Management/Estimating
View the progress of bids and track proposals in real-time. Estimates and approximations can be built using data such as material and labour costs, historical/standard costs, sales prices, Bill of Quantity (BOQ) and special pricing. An ERP can generate estimates as close to the final costs as possible to avoid cost array upon completion.
3. Project Management
Gain an end-to-end project management view from planning a project and allocating resources to managing project costs and mitigating risks.
4. Contractor & Sub-contractor Management
A construction ERP system acts as a one-stop shop for all communication efforts between contractors and subcontractors. This helps to oversee daily activities, align on project details, track costs, and ensure quality.
5. CAD ERP
CAD ERP integration easily allows 3D modelling data to be stored, shared, and communicated to the right departments (saving 20% more time on Bills of Materials (BOM) transfers).
6. Safety Management & Compliance
Identify technicians with the right skills, make safety procedures and heavy equipment manuals readily available through mobile ERP access, and easily manage risk management and incident reports.
7. Service Fleet Management
Track and manage the usage, maintenance, purchasing, and disposal of all construction fleet equipment. Reports detail heavy equipment that can be optimised to reduce downtime and increase availability.
8. Inventory Management
Site managers gain a holistic view of all raw materials, tools, heavy equipment, and workers across sites and jobs. With access to location, usage, and inventory stock data, site managers can reduce waste and improve asset reliability.
9. Logistics & Transport
Efficiently track the movement of equipment, tools, and raw materials between sites and jobs.
What Operations Benefit Most Using ERP Software For Construction Tasks?
Two construction sub-sectors benefit from construction ERP; building and infrastructure. The use of ERP in these two sectors can be broken down further:
- Residential
- Commercial
- Industrial
- Infrastructure
Residential construction firms use an ERP system for controlled project, budget, and time management to inform stakeholders of progress. Commercial construction businesses utilise ERP to ensure seamless communication across all functions of large-scale projects. These projects include hotels, offices, restaurants, medical facilities, and sports arenas.
Construction ERP Software is crucial for industrial construction projects due to its complex operations. All departments, contractors, and site managers must continuously meet safety standards and ensure compliance (60% of contractors use software for managing construction safety and inspections). This mainly applies to the construction of warehouses, power plants, and manufacturing plants.
Infrastructure construction operations bring great public interest and outside investment. An ERP allows for data to be accessed by all stakeholders for better communication, collaboration, and transparency when undertaking infrastructure projects (roads and bridges, water and sanitation, and civil works).
Construction ERP Vs. Construction Project Management Software
A construction ERP system encompasses all activities, departments, and actions of a construction and engineering firm. That includes:
- HR
- Payroll
- Inventory management
- CRM
- Risk management
- Supply chain management
Construction Project Management Software focuses specifically on the planning, execution, and delivery of construction projects. That includes:
- Project planning
- Resource and equipment allocation
- Site management
- Budget and purchasing control
- Invoicing and contract management
- Time tracking