Shortlist UK’s Best Construction ERP Software

Use our finder tool to easily shortlist Construction ERP Software that meets your project, site, and contractor management requirements.

What Is Construction ERP Software?

Construction ERP Software is an end-to-end planning and management solution that focuses on each phase of the construction process. It integrates and consolidates core operational data, from bid management and project planning to compliance tracking and billing.

A construction ERP mitigates project delays and cost overruns by driving real-time visibility across projects and sites. With a focus on materials management, waste reduction, and labour costs, total project spending is reduced by 10%. While on-time project completion rates increase by up to 20%.

ERPs integrate core business functions in a single platform to streamline and better manage operations. This principle applies to construction ERPs too, yet they’re purpose-built for construction and engineering firms.

That means – on top of accounting, CRM, and inventory management – construction ERP systems deliver modules focusing on project, multi-site, bid, contractor, subcontractor, and materials management.

UK’s Top 6 Construction ERP Systems

How Much Should You Budget For Construction ERP Software?

Estimated first-year budgets for Construction ERP Software range from £10,000 to £500,000. This total takes into account both initial investment costs and ongoing costs, such as:

• Software licenses and ERP implementation
• Specific deployment services like data migration from legacy systems
• Change management services
• Integration with existing external platforms like accounting applications
• Customisation
• Training and support
• Yearly system maintenance

On the lower end of the budget scale are smaller construction firms. These firms have fewer than 20 users (Project manager, Procurement manager, Site manager, Design Coordinator, etc.) and require only the basic ERP functions.

At the end of the scale are multi-site organisations with a turnover of more than £50 million. These firms will have at least 100 employees using the system, and it will require high levels of customisation, integration, and change management.

What should not be overlooked when budgeting is the potential return on investment (ROI). For construction and engineering firms, ERPs increase productivity by 15%, reduce labour and material costs by 15%, decrease admin time by 30%, and increase on-time completion rates by 20%.

Overall, firms can anticipate a meaningful ROI of up to 25% within three years of implementation.

9 Standout Modules and Features For Each Construction Phase

1. Bid Management/Estimating (Planning)

View the progress of bids, track proposals, and track tenders in real-time using CRM, compliance tracking, and document management features.

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 overruns upon completion.

Use construction ERP systems to auto-generate bids following approval workflows and model risk scenarios such as delays and cost overruns.

2. Resource Planning (Planning)

Better plan and allocate labour, equipment, and materials across multiple projects. Scheduling modules are used to assign labour based on skills, availability, and location. This helps to forecast labour costs months in advance.

For equipment allocation, construction ERP systems enable the tracking of heavy machinery and tools. Taking into account maintenance schedules and downtime, project managers know what equipment is available and when.

Using BOM and inventory management features, forecast the amount of materials needed based on deadlines and delivery dates.

3. CAD Interface/Modelling (Planning)

CAD ERP integration easily allows 3D modelling data to be stored, shared, and communicated with the right departments. This feature alone helps save 20% more time on Bill of Materials transfers.

Linking CAD data with costs, procurements and resource planning helps to auto-generate project schedules and cost estimates.

4. Contractor & Sub-contractor Management (Procurement)

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.

It stores profiles, insurance, and past performance data, ensuring you’re hiring qualified subcontractors for the job. As well as contract data that is linked directly to timelines and project budgets.

In the execution phase, this module is used to track project tasks and real-time progress. As well as monitoring KPIs and logging labour hours for automated payment workflows.

5. Inventory Management (Procurement)

Site managers gain a holistic view of all raw materials, tools, heavy equipment, and workers across sites and warehouses. With access to location, usage, and inventory stock data, site managers can reduce waste and improve asset reliability.

Construction ERP Software reduces inventory waste and over/under-stocking scenarios, meaning lower carrying costs. It can be integrated with MRP tools to ensure materials are available when needed.

6. Project Management (Execution)

Project management features are the backbone of construction ERP systems. They drive project visibility in planning, scheduling, budgeting, resource allocation, timelines, communication, and reporting.

This provides an end-to-end project management view that ensures projects finish on time and within budget. Gaining an oversight across all open projects.

7. Site Management (Execution)

Gain greater control over each construction site by having daily operations, back office communication, compliance, and resource data in one platform. This module is used by site supervisors to track daily activities associated with labour, materials, and equipment.

Site managers can log safety incidents, track workers, log material receipts, assign tasks, and access drawings.

8. Safety Management & Compliance (Execution)

Health and safety modules are used to reduce workplace incidents, improve compliance (HSE, ISO 45001, etc.), and drive a proactive safety culture on site.

Identify technicians with the right skills, make safety procedures and heavy equipment manuals readily available through mobile access, and easily manage risk management and incident reports.

Site managers can instantly log safety incidents and accidents for a faster response to root cause analysis. This leads to follow-ups and preventive action to mitigate any safety concerns.

9. Financial Management & Billing (Post-construction)

Contract management, audit trails, and payment tracking are utilised to accelerate billing cycles and enhance cash flow visibility. The financial management module of a construction ERP ensures all payments are tracked, paid on time, and accurate.

This module is essential for reducing admin through automation and templates. Auto-apply VAT, region-specific taxes, billing reports for HMRC, contracts, and invoices.

4 Sectors That Benefit From Construction ERP Implementation

Four construction sectors benefit most from an enterprise resource planning system;

• Residential
• Commercial
• Industrial
• Infrastructure

Residential Construction

Residential construction firms use an ERP system for controlled project, budget, and time management to inform stakeholders of progress. They will use modules, such as:

• Project management for tracking timelines, budgets, and housing units.
• CRM integration for contract and buyer management.
• Subcontractor management to assign and track workers per unit or block.
• Financial management for automated invoicing and billing.

Commercial Construction

Commercial construction firms use ERP to ensure seamless communication across all functions on large-scale projects. These projects include hotels, offices, restaurants, medical facilities, and sports arenas. They utilise features like:

• Bid management to track estimates and win rate analytics.
• Contract management to store original contracts and track versions.
• Document control for managing contracts, blueprints, drawings, and safety procedures.
• Labour scheduling to assign and track workers across buildings and sites.

Industrial Construction

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). ERP modules that focus on these requirements include:

• Resource planning to manage the assigning of machinery, labour, and logistics.
• Compliance tracking to ensure quality assurance and quality control checks.
• Inventory management for managing high-value materials and tracking purchasing costs.
• Maintenance integrations for scheduling and tracking preventive maintenance of heavy equipment.

Infrastructure Construction

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). These firms benefit most from modules like:

• Site management for tracking global projects across multiple locations.
• Billing to manage milestone-based payments.
• Subcontractor management to track compliance and SLAs (Service-Level Agreements).
• Sustainability reporting for documenting environmental impact and accessing certificates.

How Ready Is Your Firm For Construction ERP Software?

A colour-coded system can help you better understand when it is best to implement Construction ERP Software.

Construction ERP Software FAQs

What Industries Benefit Most From Implementing Construction ERP?

• Core construction sectors (residential, commercial, industrial, and infrastructure)
• Engineering firms (civil, structural, and MEP)
• Real estate developers
• Manufacturers of raw construction materials

Construction ERP vs. Construction Project Management: What’s the Difference?

Construction ERP Software integrates all core business functions across the entire construction company. Whereas a Construction Project Management (CPM) system will focus specifically on managing the individual tasks of a project.

Both solutions differ in terms of the key features provided, purpose, and outcome too.

Key Modules/Features

• Construction ERP: inventory, financial, bid/estimates, site management, equipment management, resource allocation, MRP
• CPM system: Scheduling, subcontractor assigning, quality control, task management

Purpose

• Construction ERP: Unifying data and information across the entire construction operation to enable strategic decision-making at the highest level.
• CPM system: Ensure singular projects are completed on time, within budget, and to the intended standard of quality.