Revolutionize Construction Industry with ERP

Hashmicro
Revolutionize construction industry with ERP

Construction Industry is huge and growing steadily over the last decade. This industry involves a lot of money, manpower and material management with rarely involvement of a software at an operational level. Though many Construction management softwares are available in the market, very few of them involve all aspects including the nitty-gritty of on-site data which is very difficult to digitize. But if an organization decides to implement ERP for its construction business, it will be able to manage the cost of the project and the entire project altogether. The operations can be a fully automated including all the stages of construction process and generate real-time reports. The organization can also upload the customer details into the system for future projects. The ERP can update the client with site photos and stages of construction process which will improve the organization’s performance and efficiency.

How to digitize construction industry?

Construction basically involves a pre-operational stage where documentation is completed before the work at the site starts. The documents can be scanned and each process can be authorized or marked “complete” by the authorized person. The time and money spent on this stage can also be accounted for, which be used by the Construction accounting software later for preparing accounting statements. Once the work starts, it can be divided into various stages like leveling, setting the boundary, piling, foundation, concreting, roofing, plastering etc. which will remain constant for each project. Construction involves multiple operational processes, categorized into stages and it is difficult to digitize the data generated during these. For this, basic needs would be availability of internet and the awareness of technology among the workers.With mobile and cloud computing, getting the system to the construction site will be comparatively convenient. Using systems integrated with biometrics or and electronic ID card system it will become easy to track the entry and exit of all workers. Rest of the site data can be handled by the managers with a well-defined process, which would include, inventory software used for managing the stock of construction materials and human resource management software to track the strength workers and their timings. Each stage of construction can be defined by the organization and the management can get the details at any given point. The planned and actual data can be viewed by the management and any corrective action required can also be taken on-time. The whole project can be synchronized and tracked using project management software especially designed for the construction industry.

How to choose the right ERP software for the construction industry?

Once the management decides to implement an ERP software for its construction company, different stages involved in the organization’s process should be explained to the prospective ERP solution providers. They will come up with a customised solution for the organization depending on the requirements. The cost of implementing the software and the time taken for implementation are also important, especially for live projects as it may cause a delay. Typically, a construction ERP software should have the following modules:

  • Organizational portal, showing all the completed, ongoing and upcoming projects of the company in order to take fresh enquiries from prospective clients
  • Payroll software for workers customized as per daily wages rates
  • Project management software
  • Customer portal which can be an additional service for the client
  • Equipment management software especially if the organization manages multiple projects in multiple locations
  • Construction software which can be used at the site
  • Accounting software to manage multiple clients
  • Field service and reporting over the mobile
  • Job costing software
  • Content management for various documentations
  • Customer service portal wherein the existing customers can report any service-related issues and request for a service
  • Management reports or Management Information System (MIS) providing consolidated data to the management and recording details at different levels

Once the requirements are clear, the ERP Company would provide the organization with a trial version of the existing software they have or come up with a sample of a new software. Once the trial or sample is approved, the cost, time and implementation parts can be discussed and finalized. The software vendor’s reliability could be decided based on experience in construction industry and otherwise, the resources they are projecting and few references, especially the after-sales support.

Implementing Business management software for construction industry can be quite challenging at the initial stages as it involves a lot of data entry for the ongoing and already completed projects.

Since the Project Management software includes planning and scheduling the activities of a project, it can be sent to the respective employees through the ERP where they can input the present data against the planned output. The Project Manager can get the real-time data at different stages of different projects. ERP software also assured a level of auditing if user logins and authorizations are properly set for each stage. Additional modules such as lease and property maintenance can be introduced at later stages if the construction company gets the contract for leasing and maintenance of the project. Many malls and buildings are now following this so that the construction company will have background information and right resources to maintain and manage the same.

Construction Industry is huge and growing steadily over the last decade. This industry involves a lot of money, manpower and material management with rarely involvement of a software at an operational level. Though many management softwares are available for the construction industry, very few of them involve all aspects including the nitty-gritty of on-site data which is very difficult to digitize. But if an organization decides to implement ERP for its construction business, it will be able to manage the cost of the project and the entire project altogether. The operations can be a fully automated including all the stages of construction process and generate real-time reports. The organization can also upload the customer details into the system for future projects. The ERP can update the client with site photos and stages of construction process which will improve the organization’s performance and efficiency.

How to digitize construction industry?

Construction basically involves a pre-operational stage where documentation is completed before the work at the site starts. The documents can be scanned and each process can be authorized or marked “complete” by the authorized person. The time and money spent on this stage can also be accounted for, which be used by the Construction accounting software later for preparing accounting statements. Once the work starts, it can be divided into various stages like leveling, setting the boundary, piling, foundation, concreting, roofing, plastering etc. which will remain constant for each project. Construction involves multiple operational processes, categorized into stages and it is difficult to digitize the data generated during these. For this, basic needs would be availability of internet and the awareness of technology among the workers. With mobile and cloud computing, getting the system to the construction site will be comparatively convenient. Using systems integrated with biometrics or and electronic ID card system it will become easy to track the entry and exit of all workers. Rest of the site data can be handled by the managers with a well-defined process, which would include, inventory software for managing the stock of construction materials and human resource management software to track the strength of the workers and their timings. Each stage of construction can be defined by the organization and the management can get the details at any given point. The planned and actual data can be viewed by the management and any corrective action required can also be taken on-time. The whole project can be synchronized and tracked using project management software especially designed for construction industry.

How to choose the right ERP software for the construction industry?

Once the management decides to implement an ERP software for its construction company, different stages involved in the organization’s process should be explained to the prospective ERP solution providers. They will come up with a customized solution for the organization depending on the requirements. The cost of implementing the software and the time taken for implementation are also important, especially for live projects as it may cause a delay. Ideally, a construction ERP software should have the following modules:

  • Organizational portal, showing all the completed, ongoing and upcoming projects of the company in order to take fresh enquiries from prospective clients
  • Payroll software for workers customized as per daily wages rates
  • Project management software
  • Customer portal which can be an additional service for the client
  • Equipment management software especially if the organization manages multiple projects in multiple locations
  • Construction software which can be used at the site
  • Accounting software to manage multiple clients
  • Field service and reporting over the mobile
  • Job costing software
  • Content management for various documentations
  • Customer service portal wherein the existing customers can report any service-related issues and request for a service
  • Management reports or Management Information System (MIS) providing consolidated data to the management and recording details at different levels

Once the requirements are clear, the ERP Company would provide the organization with a trial version of the existing software they have or come up with a sample of a new software. Once the trial or sample is approved, the cost, time and implementation parts can be discussed and finalized. The software vendor’s reliability could be decided based on experience in construction industry and otherwise, the resources they are projecting and few references, especially the after-sales support.

Implementing Business management software for construction industry can be quite challenging at the initial stages as it involves a lot of data entry for the ongoing and already completed projects.

Since the Project Management software includes planning and scheduling the activities of a project, it can be sent to the respective employees through the ERP where they can input the present data against the planned output. The Project Manager can get the real-time data at different stages of different projects. ERP software also assured a level of auditing if user logins and authorizations are properly set for each stage. Additional modules such as lease and property maintenance can be introduced at later stages if the construction company gets the contract for leasing and maintenance of the project. Many malls and buildings are now following this so that the construction company will have background information and right resources to maintain and manage the same.

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