The construction industry is beginning to embrace the idea of digitisation and project management software. New solutions are being developed that are geared to the unique needs of the construction industry. A solution that construction firms are finding particularly valuable is modern-day enterprise resource planning (ERP) software. ERP software allows organisations to better manage day-to-day business activities, from finances and accounting, payroll and human resources (HR), to analytics and procurement.
Why do we say modern day? Traditional construction ERP solutions were built in a time of disk-based computers. They had certain architectural constraints that meant they could only be built in a certain way. Also, they were deployed on-site, so required software installed on servers that were maintained by the company’s IT gurus or an outside vendor.
Traditional construction ERP tools required regular updates and costly hardware investments. But modern construction ERP solutions are cloud-based and don’t require on-site hosting. Instead, they’re housed in the cloud — a data centre owned by the ERP vendor.
Modern ERPs also allow for higher levels of automation and customisation. New construction ERP solutions for the construction industry aim to digitise processes for improved efficiency, easier project management and enhanced communication across all teams — in turn improving a construction firm’s profitability.
What Can Construction ERP Software Do for You?
ERP software is beneficial for the construction industry in many ways. These construction-industry-specific solutions allow for improved productivity and efficiency in all aspects of a company’s day-to-day functions. The benefits of ERP in the construction industry are nearly limitless. Cloud-based ERP solutions give all stakeholders access to the most up-to-date data and information, any time and anywhere. This enables improved planning and analysis, better cost control capabilities, increased productivity, efficient project management, enhanced team collaboration and efficient time management.
Related: Is Cloud-Based Construction Software Worth It?
ERP Modules for Construction Companies
Modern ERP software can be developed as independent modules. That’s great for the budget because you get what you actually need and use, and you aren’t stuck with pieces of software that you never touch. There are several types of construction ERP software modules, but we’ll be taking a look at the top five.
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Accounting & Finance
With construction accounting software, you’re able to streamline accounting and finance tasks. In the past, companies had to rely on separate accounting software to manage financial tasks. But newer, digitised ERP solutions are designed with intuitive accounting systems. They include tools and features that give you better insight into your financials, by allowing you to manage your:
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- General ledger
- Purchase ledger
- Contract accounts receivable
- Contract/Job Costing
- Cashbook
- Subcontractors ledger
- Fixed assets
- Cashflow Forecasting.
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HR & Payroll
In 6 Reasons to Manage Payroll Digitally, we discussed the importance of digitising HR and payroll tasks. With ERP systems for the construction industry, you can ditch the time-consuming paper timesheets, costly cheques and tedious accounting tasks. Tap into the power of construction ERP technology for time-saving efficiency and improved accuracy, both of which positively affect your bottom line. HR & payroll management ERP modules typically have a set of key features to help streamline the processes, such as:
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- Direct deposits
- Accounting and time management
- Reports (reconciliation and payment deduction analysis)
- Tax management
- Compliance management
- Expense management.
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Business/Data Analytics
Big data analytics in the construction industry is a big topic. In the construction industry, there’s no shortage of data to view and analyse, and it’s stored in multiple locations. So, how do all of this efficiently and what do you do with all that valuable information? Construction technology data analytics help you to analyse all of your data easily and to leverage the numbers for insights that can help you guide your business. Construction data analytics software provides tools and features, such as dashboards and reporting, that allow you to sort and analyse data easily, to make better business decisions.
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Procurement
Procurement systems in construction projects help your business to manage the orders you place with your suppliers more easily. Construction procurement software tracks the orders you place, produces matching goods received notes and stores the supplier’s invoice. The system makes it simple to view and manage orders by displaying each order’s status. This also ensures transparency and helps to control supply chain risks. When you have better inventory management, you’re better able to avoid project and work order delays and project overruns. Features often include:
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- Bulk orders and call-off orders
- Orders for stock, contracts or overhead items
- Total for goods delivered and not received
- Analysis against cost heads, plot or operations
- The ability to place orders electronically.
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Estimating and Surveying
One key solution for construction project management success is accurate cost estimation, which is crucial for the bottom line. While in construction projects it’s understood that an estimate isn’t the final number, its accuracy or inaccuracy can make or break your profitability.
Construction estimating software will help you produce more accurate cost estimates for materials, plant, labour and subcontractors. You can also use it to calculate overhead liabilities on lengthy projects. This will help you to provide a more accurate cost estimation, where the real cost deviates little from the initial estimate as the project moves through its lifecycle.
Invest in Modern ERP Software for Construction
Together, RedSky and our construction ERP Solution provide all of the benefits a construction company needs to succeed in today’s digital world.
Modern ERP software is your ticket to efficiency, productivity and a better bottom line. ERP solutions like RedSky’s cloud-based ERP are fully integrated and user-friendly. They help you make better decisions based on real-time data. They improve communication, both across the company and for all stakeholders, while also enabling you to optimise your supply chain management. Ultimately, this will improve operational efficiencies, productivity and profit margins.
Ready to invest in the most recent ERP solution that gives you the power to streamline your processes, and improve decision-making and communication? Let us help. Learn more about how RedSky’s construction ERP solution can improve your profitability by requesting a demo. You can also get in touch through our contact form or by giving us a call at +44 020 3002 8600.
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