Companies from the construction and construction-related industry 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 processes.
ERP software offers a variety of integrated solutions that support all aspects of the construction business, from planning, project control, to cost and revenue estimation. The following are six main benefits of ERP software in the construction industry.
1. Optimizing Planning
Improper Planning in the framework of a construction company leads to the substandard completion of projects and even the downfall of the company.
Contractors can incur heavy losses in the form of labor costs and loss of clientele due to untimely completion of targets. 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 proper channeling of resources.
Construction ERP software can be implemented to make provision for controlling expenses and budgetary allocation. It also helps avoid unnecessary downtime and contractual issues with clients throughout the duration of the project.
2. Streamlining Project Management
Distributing assignments and monitoring project progress across several work locations has always been challenging in the construction business.
With the help of an ERP system, construction managers can easily monitor the status of each project, create milestones, delegate assignments to the right staff, and keep track of staff timesheets with just a few clicks. Real-time data enables contractors to track the time each staff spends on each task, making it easier for them to bill clients.
Also read our related article: How to Simplify Construction Project Management Processes
3. Facilitating Cost & Revenue Estimation
Most construction 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.
Since different clients have different priorities, the most suitable bid is chosen based on the design proposed, the reputation of the company, and most importantly; the estimated costs proposed.
ERP software can be used to determine 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.
In addition to cost estimation, the construction ERP software also allows contractors to find out how much revenue or how much loss and profit they get from each project. This way, they will be able to manage the time and costs used for future projects more wisely.
4. Simplifying the Exchange of Information
Larger construction companies handle more than one client at a time, because of which the exchange of information within the company can become tedious and confusing.
Managing and compiling data for many tasks in the form of Excel spreadsheets or PowerPoint presentations is very inefficient and impractical, not to mention this is also not a safe way.
ERP software makes the data exchange easier through resources and firewalls that support optimal data security. Contractors can also provide restrictions on their data; which one can be shared with the client or which one can be seen by the employees.
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 are required to correlate information from different sources, the ERP software assists in extracting data and providing relevant criteria that require adjustments before fulfilling a request.
For example, before making a purchase order for certain raw materials, the budget report has to be submitted to the project manager, based on what they refer to the engineering team and the formulated construction design. Based on this design, the purchasing manager creates the purchase order which must then be screened by the accounting department before getting approved.
6. Increasing ROI
ROI can not only be measured in the form of money, but also in the form of other benefits. Regardless of how it is measured, contractors certainly want to increase their ROI from time to time. This can be achieved more easily with the help of ERP software.
ERP software allows construction companies to eliminate manual, time-consuming and labor-intensive processes, control expenditures for raw materials and employees, reduce IT costs, get rid of unnecessary downtime, and meet project deadlines.
HashMicro’s Construction ERP Software consists of modules that support the optimization of overall construction business operations, ranging from project and contract management, accounting management, inventory management, asset management, to HR management. Get a special discount of 10% for our comprehensive ERP system by including the promo code ‘Hash10 in the inquiry form.