Benefits of ERP Software in Construction Industry

ERP (Enterprise Resource Management) is an integrated process of gathering and organizing business data through a consolidated software suite. Construction ERP Software helps managers to design comprehensive and extensive plans for successful engineering of projects from the beginning of project work till the outcome and during the entire construction lifecycle.

Construction Software has been customized in different sectors including sales, material management, tendering, purchase management, general contractors, and many else.  Construction Management ERP Software is an advanced technology software that combines all construction business processes like accounting, payroll, purchase management, inventory management etc in one database and takes care of all the business components by removing paperwork and making manpower more productive.

ERP software for the construction industry maintains all the necessary data or information regarding projects, profitability, conversion and revenue generation.

Below are the key benefits of ERP in the Construction Industry:

1. Cost Estimation

Implementation of Construction ERP software can reduce your technical costs and enhance workflow in an efficient way. ERP for the construction industry is really helpful in estimating the cost of the project to plan for future work according to the budget. Some construction companies work on a contract basis and before getting tender, they bid for their projects for better cost estimation.

2. Real-Time Project Tracking

The advanced construction ERP software solution gives reliable analytical reports from real-time data and as a result, it allows the construction head to track ongoing project progress and take necessary action in case of any variance. And therefore, a construction ERP software helps in reducing risk, unnecessary time as well as improve the efficiency of work.

3. Planning and Analysis

Proper planning and analysis of architectural work are always essential to increase the reputation of any organization. Construction ERP software allows the analysis of contract management, purchase management, project design, the raw material which is beneficial for financial budgets. It also helps to avoid contractual problems with the vendors and sub-contractors.

4. Increasing ROI

Construction ERP software allows construction & infrastructure companies to avoid manual, time-consuming, and labor-intensive processes, control expenditures for raw materials and employees, get rid of undesirable operating costs, remove unnecessary downtime, and meet project deadlines. And helping the organization get maximum ROI.

5. Optimize Project Management

To optimize Project Management, a construction ERP software solution has the capability to monitor information, storing data & accurate analysis of raw material, manpower utilization & resource allocation. Construction ERP Software allows access control for the authorized customers to get all the information from anywhere across the world. It avoids the unnecessary time, cost & waste of money during the project duration.

NWAY ERP provides an ERP software solution that can help your construction business to acquire all the above benefits and fulfill your construction business needs. If you want to know more about how our smart ERP software helps you to build your construction operation, fill out our demo form and consult with Nway’s 15+ years domain experts.

Implementation of ERP Systems in the Construction Industry

Today, construction industry has become more challenging and competitive. All the construction firm are in the search for any mean to boost productivity, accomplish integration and stain competitiveness. Enterprise Resource Planning (ERP) system is an Information Technology (IT) business solution that enables construction companies and their contractors to manage capital projects effectively and efficiently throughout the project lifecycle.

Enterprise Resource Planning can allow companies to enhance their business processes and allows for necessary management. That’s why ERP can be said as business management system software that can integrate numeral activities in a project & deliver a simultaneous result for bettering performance, reduce cost, and increase profits.

construction ERP software provides cost optimization, incorporate design changes, consistent quality conformance, Reliable, Faster and on time delivery, incorporates value engineering, Collaborative work environment, team tracking facility.

When evaluating your potential solution, you will need to understand how the functions will integrate and benefit you but there are 3 core elements that you must ensure are provided.

Features for Construction Management:

  • Procurement and controls
  • Accounting
  • Specialized Cost Ledgers
  • Payroll and Labor Costing
  • Plant and Equipment Costing
  • Contract Cost Reporting
  • Business Intelligence
  • Document Management
  • Time and Attendance Systems
  • Human Resource Management
  • Enterprise Accounting

Top 3 key Elements your construction ERP Must Have:

1. Planning & Estimation

Be prepared for unforeseen changes by analyzing previous reports to realizing the repetitive constraints. Mark your budget limits with timely alerts on exceeding limits. Ensures a project is achievable, measurable, specific, relevant and in the bound of time. Share the planning and ideas with customized groups in a centralized system making it a more Accountable and Consortium system.

2. Contract management

Contract management is the management of contracts made with customers, vendors, or partners. The strange challenge for a construction ERP is to manage a scope of work that can be fluid relating to a complex asset and maintain a list of contractors and track the progress. Contract management needs to go for multiple changes and be structured to handle workflow approvals, contract changes and revisions.

3. Cost control

A construction ERP must be able to handle such diverse elements as resource allocation, payments on milestones, sub-contractor costs and plant and equipment. The time at which major cost savings can be achieved is during planning and design for the project. The date reports, business intelligence and revision of the project will assist on maintaining control of costs and, of course, margin.

Nway ERP software for construction industry are used across all industries but the ones that are built for the unique needs of construction companies help manage contractors, financials, and service operation.