HomeIndustriesERP6 Main Benefits of ERP Software in the Construction Industry

6 Main Benefits of ERP Software in the Construction Industry

HashMicro’s ERP system for construction companies consists of modules that support the optimization of overall construction business operations, ranging from project and contract management, accounting management, inventory management, and asset management, to HR management.

In addition, you also need HashMicro’s Construction ERP Software pricing scheme calculation to help you gather all information about the costs of construction software and also the features in the demo.

Companies from the construction industry, as well as construction-related industries, must be able to prove themselves in a competitive and challenging market environment in which the use of material resources and a high degree of flexibility in project management are very important.

Intense national and international competition, increasing administrative requirements, and high pressure to innovate require contractors to have the support of advanced business solutions that are able to simplify complex and unique construction industry processes.

Therefore, implementing an ERP system for a construction company is an option to keep companies at a competitive edge. It is also important to mark that once you decide to use this software, you are also going to need the best construction industry software pricing scheme to help you calculate the costs.

ERP system for a construction company offers a variety of integrated solutions that support all aspects of the construction business, from planning, and project control, to cost and revenue estimation. After understanding the functions of ERP software, here are six main benefits of ERP software in the construction industry:

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What is the Construction Industry?

The construction industry is a sector that consists of various activities related to the development, improvement, and maintenance of physical structures such as buildings, roads, bridges, and other infrastructure. Activities in the construction industry include planning, design, procurement of materials and equipment, construction implementation, as well as maintenance and renovation of existing structures.

The construction industry plays a crucial role in the economic growth of a country by providing large employment opportunities and improving the quality of existing infrastructure.

download skema harga software erp
download skema harga software erp

Types of the Construction Industry

  1. Residential: an industry related to the construction of houses and apartments.

  2. Commercial: an industry related to the construction of commercial buildings such as office buildings, shopping centers, hotels, and others.

  3. Industrial: an industry related to the construction of factories, warehouses, and other industrial facilities.

  4. Infrastructure: an industry related to the construction of public infrastructure such as roads, bridges, railways, and airports.

Benefits of ERP Software in the Construction Industry

1. Optimizing Planning

Improper planning in the framework of a construction industry company leads to the substandard completion of projects and even the downfall of the company. Hence, contractors can incur heavy losses in the form of labor costs and loss of clientele due to the untimely completion of targets. Moreover, the delay in the project delivery due to lack of planning also reflects poorly on the goodwill of the company.

Planning for the raw materials required, effective use of labor, architectural design, and schedules is critical for the proper channeling of resources. In addition, an ERP system for a construction company can be implemented to make provisions for controlling expenses and budgetary allocation. So it helps avoid unnecessary downtime and contractual issues with clients throughout the duration of the project.

ERP for Construction software can also provide guidance on what you should do to improve construction performance. ERP software can calculate what percentage of progress contractors get from their performance. In addition, an ERP system for construction companies can also manage employee salaries regarding bonuses, overtime, and basic salaries. That is why the construction industry today is in dire need of ERP software.

2. Streamlining Project Management within Construction Industry

Distributing assignments and monitoring project progress across several work locations has always been challenging in the construction business. Meanwhile, with the help of an ERP system, construction industry managers can easily monitor the status of various activities. It can the status of each project, create milestones, delegate assignments to the right staff, and more activities.

Real-time data enables contractors to track the time each staff spends on each task. Furthermore, the ability also makes it easier for them to bill clients. With the right CRM system, you are able to boost your sales team’s productivity.

Monitoring sales and purchases of construction goods are sometimes often negligent and not noticed by construction industry managers. This can make the company’s finances become large so that production costs become out of control. That is why Singapore construction software is here to solve this problem.

Construction ERP software can provide convenience for contractors to manage construction industry projects effectively and efficiently. ERP system for a construction company is one of the software that many businesses in Singapore use. This is because they see that ERP software is a mandatory system for them to improve company performance.

Related article: How to Simplify Construction Project Management Processes

3. Facilitating Cost & Revenue Estimation

construction industry

Most construction industry companies work on a contractual basis with their clients. Before acquiring the tender for a project, they are required to bid on the project with their estimated costs.

Different clients have different priorities
. The most suitable bid chosen is based on the design proposed, the reputation of the company, and most importantly; the estimated costs proposed.

ERP for construction companies enables you
to determine the accurate estimation required for raw materials, designs, labor, and the duration to carry out a project. So that the actual costs will not deviate much from the projected costs.

Therefore the construction ERP software also allows you to know about the amount of revenue and loss of profit from each project. So they will be able to manage the time and costs used for future projects more wisely.

Also read: 5 Important Software Systems for Construction Companies

4. Simplifying the Exchange of Information

Larger construction industry companies handle more than one client at a time. That way, it makes the exchange of information within the company become tedious and confusing. Managing and compiling data for many tasks in the form of Excel spreadsheets or PowerPoint presentations are very inefficient and impractical, not to mention this is also not a safe way.

ERP software makes data exchange easier through resources and firewalls that support optimal data security. Contractors can also provide restrictions on their data; which can be shared with the client or can be seen by the employees.

The Singapore construction ERP system is a system that can maintain company data more effectively and efficiently. In addition, using ERP Singapore software can also make it easier for you to analyze what percentage of project performance. This can help construction industry managers in determining the best decisions to improve company performance.

5. Improving the Decision-Making Process


A centralized system helps improve efficiency by providing a comprehensive view of a particular situation prior to making decisions. Whenever staff requires to correlate information from different sources, the ERP for construction software assists in extracting data. It can also provide relevant criteria that require adjustments before fulfilling a request.

For instance, before making a purchase order for certain raw materials, the budget report has been submitted to the project manager
. It’s based on what they refer to as the engineering team and the formulated construction industry design. Besides that based on this design, the purchasing manager creates the purchase order. This situation must then be screened by the accounting department before getting approved. You could get help from accounting software for this as well.

6. ERP System for Construction Company Enables You to Increase ROI

Contractors naturally want to increase their ROI over time. ROI can also be measured in terms of money but also in the form of other benefits and ERP software for a construction company can help in the process of achieving that. The large value of projects in the construction industry makes them definitely need an investor to fund their projects. However, before an agreement is reached with investors, contractors will definitely see the value and benefits they will get when recruiting investors as financiers.

This is what causes ERP software to become mandatory software that companies must have. Construction ERP is one of the mandatory systems in the construction industry. This is because ERP software can easily calculate what percentage of ROI they will get after recruiting investors. This will certainly make it easier for companies to assess and determine what price they will give investors. That is why today, construction ERP applications are mandatory applications for the construction industry.

Also read: 16 Best ERP Software in Singapore You Should Know in 2023


ERP system for construction companies allows them to eliminate manual, time-consuming as well as labor-intensive processes. So it can control expenditures for raw materials and employees, reduce IT costs, get rid of unnecessary downtime, and meet project industry

HashMicro’s ERP system for construction companies consists of modules that support the optimization of overall construction business operations, ranging from project and contract management, accounting management, inventory management, and asset management, to HR management.

In addition, you also need HashMicro’s Construction ERP Software pricing scheme calculation to help you gather all information about the costs of construction software and also the features in the demo.

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HashMicro is a software development and enterprise resource planning (ERP) company. Consequently, we often provide articles about ERP and other systems that all businesses need.

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