Operating a construction company is like conducting multiple sophisticated orchestras at once since they are intricate organizations with a lot of moving elements. Maintaining inventory of labor, tools, materials, and equipment; tracking payments and invoices; estimating and bidding for projects; keeping them on schedule and under budget; and handling unforeseen circumstances are all necessary tasks. Construction company management can be made simpler with the use of enterprise resource planning (ERP) technologies.
But it might be challenging to choose the finest construction ERP provider for your business—or even to decide if it needs one—because so many are on the market. Because of this, the professionals at Forbes Advisor have put together a list of the top construction ERPs available.
The construction ERP industry is specially made to meet the particular needs and challenges of this business. It functions as a complete tool that combines many facets of construction management, such as resource allocation and project planning, financial supervision, and compliance.
Businesses may assure smooth departmental coordination, which improves productivity, lowers costs, and improves project outcomes, by putting ERP software for construction into practice. Every building domain has its own distinct set of demands and criteria, whether it is for residential, commercial, industrial, or infrastructure projects.
Table of Contents
What is Construction ERP Software?
An enterprise resource planning system that is tailored to the particular needs of construction companies is called construction ERP software. The management of general contractors and subcontractors, strong financial management, specialist construction accounting, payroll processing, and the administration of service operations are just a few of the many features that are included in a construction ERP system. Construction organizations should expect improved productivity and streamlined operations thanks to the smooth integration of all these aspects into a single, consolidated database.
A customized enterprise resource planning system designed to meet the specific requirements of construction enterprises is called construction ERP software. In a single central database, these systems ought to manage general contractors, subcontractors, finances, construction accounting, payroll, and service operations.
Role of ERP in Different Construction Verticals:
- ERP solutions offer the flexibility and accuracy required for on-time project delivery and budget management in the residential building industry, where projects frequently involve several stakeholders and strict deadlines.
- These solutions provide the stability needed for large-scale projects in commercial construction, guaranteeing the smooth integration of different processes from project execution to procurement.
- The construction ERP software is essential for managing intricate operations, guaranteeing adherence to industry norms, and upholding the highest standards of quality and safety in industrial buildings.
- Similar to this, construction ERP systems offer the openness and accountability required for effective project management and stakeholder communication in the construction of infrastructure, which frequently involves the public interest and significant investments.
Construction ERP gives mid-to large-scale enterprises the ability to combine all of their departments, teams, and projects into one location by combining all of their data and information into a single platform. An ERP’s all-encompassing strategy gives businesses increased productivity, transparency, and internal teamwork. ERP is now an essential component of many companies of all sizes, playing a vital role in their daily operations.
Benefits of Construction ERP Systems
Construction ERP systems have many advantages, giving construction companies the control, adaptability, and vision they need to complete projects on schedule and under budget. Among the main advantages are:
Organization of Chaos: Managing multiple facets of a construction company at once can be extremely challenging. ERP systems simplify the management of inventories, contractor tracking, risk assessment, and other corporate operations by centralizing business information, including financial papers, contracts, permits, and more.
Enhanced Productivity: ERP systems come powered with AI and ML-powered analytics that automate processes and produce insights that might otherwise go undetected. Businesses can operate more intelligently rather than more laboriously as a result, increasing organizational productivity.
Improved Bidding Process: Planning is inextricable from success in the construction industry. Poor project planning frequently produces subpar results.
Real-time Insights: The capacity of construction ERP software to offer real-time insights is one of its most important advantages in the construction sector. Managers get real-time access to job progress tracking, schedule updates, and modification requests.
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What should you Look for in Construction ERP Software?
Construction ERP functions similarly to a master control room for managers of construction companies managing intricate projects involving numerous contractors. It serves as a single location from which to oversee and manage all of your workflows, including project management, materials management, effective supply chain management, communications, and teamwork.
The following are important attributes to search for in building construction ERP software:
- Streamlined Project Management Software: Efficiently oversee projects from start to finish
- Financial Oversight: Monitor all financial aspects, ensuring budget adherence
- Supply Chain Coordination: Effectively oversee the delivery and acquisition of materials
- Equipment Tracking: Keep up on the availability and utilization of equipment.
- Mobility Features: Access data from a distance and on-site.
- Real-time Communication: Encourage prompt decision-making and stakeholder coordination.
- Error Reduction: Systems that reduce errors and omissions
- Improved Instruments for Cooperation: Encourage collaboration between various teams and contractors
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What are the Key Features of Construction ERP Software?
The all-inclusive suite of construction ERP software is made to give your company a full business management solution. Construction ERP software is a full tech stack integrated platform that covers everything from day-to-day operations to HR and accounting.
1. Financial Management
Construction ERP includes reconciliation and project margin management, which has historically been a labor-intensive procedure. When project managers have automated methods to compare predicted costs with baseline, they can quickly spot differences and take appropriate action.
Additionally, construction ERP gives contractors strong capabilities for managing, tracking, and project earnings forecasting, as well as for creating invoices and keeping an eye on budgets. With the support of real-time data specific to the organization and complete integration with other modules, contractors always have what they need on hand.
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2. Procurement and Inventory Control
The procurement process is automated and streamlined by construction ERP software, from the development of purchase orders to requisitions. Construction ERP lowers errors, expedites the sourcing process overall, and reduces manual administrative labor by automating the most repetitive operations.
ERP systems also provide complete insight into inventory levels through real-time inventory management, which helps you more accurately predict business requirements. Construction ERP software improves the financial health of your projects by offering a comprehensive perspective of expenses at every stage of the procurement process and integrating seamlessly with the financial modules.
3. Materials and Equipment Management
An all-inclusive solution for monitoring, controlling, and maximizing the utilization of supplies and machinery is provided by construction ERP software. Obtain total visibility into every aspect of your organization to improve project efficiencies, streamline processes, and cut down on waste.
You may more easily plan the materials needed for each of your projects with integrated demand forecasting, ensuring that they are sufficiently supplied and reducing disruptions in the event of a shortage.
Furthermore, construction ERP software offers powerful features for keeping an eye on your equipment’s upkeep and usage. To proactively address wear and tear, extend the lifespan of assets, and save expensive replacements, track usage patterns and maintenance schedules. Construction organizations may optimize their material and equipment investments with this level of control and intelligence.
4. Labor Management and Payroll
The personnel management difficulties faced by the construction industry are distinct. Businesses need to be completely aware of each person’s skill set and qualifications because they rely so heavily on third-party contractors and outsourced jobs.
Construction-specific ERP software offers a consolidated platform for labor resource tracking and allocation that is specifically tailored to the construction industry.
Based on availability, training, and credentials, the distinct scheduling elements guarantee that the appropriate individuals are assigned to the appropriate tasks at the appropriate times.
The software also computes salaries, deductions, and overtime compensation properly by automating payroll procedures. It is even more crucial that your software supports compliance and regulatory requirements because there are an increasing number of labor regulations and compliance difficulties being implemented across the United States.
5. Supply Chain Management in Construction
The construction business faces unique human management challenges. Because businesses depend so significantly on independent contractors and outsourced work, they must be fully aware of each employee’s skill set and qualifications.
Construction ERP software designed exclusively for the construction sector provides a centralized platform for labor resource management and allocation.
The specific scheduling components ensure that the right people are assigned to the right tasks at the right times based on availability, training, and credentials.
By automating payroll processes, the program also accurately computes salaries, deductions, and overtime compensation. The fact that more and more labor laws and compliance challenges are being imposed nationwide makes it even more imperative that your software complies with regulatory requirements.
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The 10 Best Construction ERP Software
These amazing construction ERP software options are up to the task of assisting construction managers in staying competitive in such a fast-paced setting.
1. SAP Business One Professional
The purpose of SAP Business One Professional is to facilitate communication, lower risk, and increase productivity for construction managers. Businesses and construction organizations can manage their finances, operations, and customer connections with the help of SAP’s many features. Building managers adore SAP’s capacity to enhance project planning and execution, allowing them to lower costs and increase their profit margins.
You can improve teamwork and communication by centralizing all of your operations in one location, ensuring that everyone is constantly in agreement. SAP may be the answer for individuals working in construction businesses’ financial management and enterprise resource planning to increase productivity, profitability, and efficiency.
SAP Business One Professional’s best features
- Easy to connect to your target and get a live response
- Provides a stable and reliable environment for construction companies to work within
- All building needs are provided in one space with the ERP system
SAP Business One Professional limitations
- Some users would like to see quicker speeds across the ERP system
- Some users would prefer a more intuitive interface
2. Procore
Procore Construction Management Software is easily accessible to companies worldwide. Procore aims to revolutionize the way construction organizations function, not only manage jobs. Procore differs from other construction ERP software due to its dynamic project management tools. With its sophisticated scheduling tools, it can manage intricate projects with varying priorities and unanticipated adjustments.
Strong accounting tools and effective document management features also make monitoring your budget simple while navigating all those changes. Utilize Procore’s chat and videoconferencing features to work together with colleagues and clients. Managers in the construction sector now have a partner in Procore to help them optimize processes, encourage teamwork, and reach previously unheard-of levels of efficiency.
Procore Best Features
- Outstanding customer support
- Helpful onboarding and training (so your IT company does not have to do the training)
- Up-to-date overview and status of all project elements at any time (i.e. inventory management, enterprise resource planning, document management, and financial management)
Procore Limitations
- Bidding tool needs improvement compared to other ERP system solutions in this list
- Unable to sync projects manually in real time
- Some of its company-level information is not available in the mobile version
3. ClickUp
You can do more with ClickUp’s Construction Project Management software! Thanks to its infinite users, tasks, and project management feature set, it scales up beautifully to support the expansion of your business. With the aid of ClickUp AI, you can proofread and review documents, keep track of job sites using Map View, and quickly create new documents using any of our project management templates.
By automatically calculating things like expenses, material estimates, and inventories as you input data, those templates help you expedite your workflow. Afterward, you can easily switch from managing client connections using ClickUp’s extensive CRM tools to managing sales with your accounting hat on.
Do you like using Gantt charts in software? You will adore ClickUp’s Gantt chart View, which enhances productivity and efficiency in prioritizing, managing dependencies, and working together. Check out ClickUp’s Statement of Work Template as well.
Effective workplace project management software and collaboration solutions are crucial for success. Some of the greatest tools for corporate collaboration available anywhere are included in the ClickUp Enterprise Plan. ClickUp is our top choice if you’re searching for the highest caliber construction ERP software with limitless features that may assist you in effectively managing construction projects.
ClickUp Best Features
- Everything in ClickUp’s software is highly customizable, from project statuses to product categories
- Add templates to incorporate client relationship management, architectural design, meeting minutes, and more
- Collaborate with your team from anywhere or manage your projects offline when you’re out of cell range
ClickUp Limitations
- The mobile app lacks a table view
- Project management suite may be overwhelming for some in the construction industry used to a more bare-bones ERM system
4. Acumatica
Acumatica is an ERP program designed for the construction industry that combines cutting-edge business analytics with practical features. Acumatica can support the seamless operation of your construction projects whether you’re working on them on the job site or from a desk.
Utilize role-based, real-time dashboards to get immediate access to data. Next, use Acumatica’s sophisticated machine learning and artificial intelligence capabilities to process all of that data and automate decision-making in light of your results. For instance, there are modules for project management requirements, payroll, inventories, and financials. Each provides various AI-powered tools and automated workflows.
Acumatica prioritizes instantaneous communication, serving as a link between field workers, office personnel, and geographically dispersed teams. All of those moving components are kept in peak functioning condition without all of the paperwork hassles thanks to its document management features.
Businesses benefit from unmatched visibility and control with Acumatica. Cloud access allows users to view important project details on any device, at any time, anywhere.
Acumatica Best Features
- Accessible from any device so you can work from anywhere
- Scales well as your business grows to any size
- Outstanding finance management
Acumatica Limitations
- Needs significant user input to generate key data
- Lacks basic reporting features, so information is sometimes difficult to access
- Some reviewers feel the program needs more development to handle day-to-day needs
5. Sage
Sage offers a complete solution designed specifically for the building sector. Sage improves construction management’s fundamental areas with efficiency and functionality. Its project management tools allow you to allocate resources, keep track of deadlines, and monitor project expenditures. The ERP system tracks inventory levels, supply chain movements, and material sources as simply as it manages invoicing, payments, and budgets.
You can safely grant role-based access to all of your contracts, architectural drawings, and project requirements by storing them all in one location using Sage’s document management and collaboration capabilities. With the chat and video conference tools, you and your team can work together in real-time on all that data.
The software promises improved operational efficiency, real-time insights for decision-making, cost savings through automation, simplified industry compliance, and flexibility to meet different business needs. Sage Construction software is a solid option for construction organizations that value efficiency and transparency.
Sage Best Features
- Very customizable when it comes to different kinds of coding
- Takes most people a significant amount of time to master the software
- Impressive real-time financial management data in the ERP system
Sage Limitations
- Limited features on mobile app
- May be expensive for some construction companies
- May be unnecessarily complex, requiring more time investment than some feel it should
6. Microsoft Dynamics 365 Business Central
With Microsoft Dynamics 365 Business Central, go beyond conventional business management. It offers specialized solutions to organizations of all sizes, but it also has cutting-edge AI-driven forecasting and risk management analytics. Its interactive dashboard makes it easy to move from lead management to project detail oversight. Additionally, its built-in compliance-check capability guarantees flawless adherence to industry norms, protecting corporate interests everywhere.
Microsoft Dynamics 365 Business Central Best Features
- Easy-to-use, entry-level software for inventory management and business processes
- The MS Office team always available to assist with issues
- Wide range of tools and functionalities in the ERP system
Microsoft Dynamics 365 Business Central Limitations
- Can’t integrate with some company systems
- Reviewers report that the mobile app can be buggy and slow
- May not be an out-of-the-box solution for most construction management companies
7. Oracle Fusion Cloud
Utilize Oracle Fusion Cloud to advance your building operations.
Its main component, the Smart Construction Platform, is made to increase productivity and boost project profitability. Its user-centric design guarantees that even the trickiest tasks can be easily completed.
Its integrated predictive analytics provides real-time information to help you stay ahead of possible problems, which makes it a vital partner for expanding construction companies and enterprises.
Oracle Fusion Cloud Best Features
- Easy-to-use tracking and location features
- Spreadsheet friendly
- Robust ERP system that integrates well with other Oracle Fusion products
Oracle Fusion Cloud Limitations
- Setup is time-intensive and may not be a good investment for smaller businesses juggling multiple projects
- Some reviewers report it is slow and cumbersome
- Doesn’t allow for modifications, which may hinder some business processes
8. PENTA
With PENTA, learn about a complete approach to construction. This comprehensive solution reinvents the construction process in addition to providing consolidation. Pentax provides comprehensive labor management and actionable analytics. For those times when you’re on the run? No matter where you are, its mobile field software makes sure you’re informed, connected, and able to make decisions.
PENTA Best Features
- Sometimes slow to update with the latest technology
- Allow your IT department to easily create reports
- Exceptional financial capabilities and functions
PENTA Limitations
- Can be difficult for people not accustomed to using ERP technology
- Multiple reviewers mention difficulty with integrating the software
- Steep learning curve that prevents key people, such as stakeholders, from using it
9. Viewpoint
Viewpoint shines as a leader in efficient construction management in a time when real-time collaboration is critical. What distinguishing feature does it have? An all-in-one communication package that promotes real-time chat and video interactions in addition to document sharing. No more delayed choices or unclear instructions. You can make sure that everyone is, both literally and figuratively, on the same page with Viewpoint.
Viewpoint Best Features
- Store documents, drawings, and pictures
- Multi-level security access to project participants
- Accounting functions are user-friendly with excellent data recovery
Viewpoint Limitations
- Some missing key features leave many users requesting updated functions
- Each user needs their license, which can make collaboration difficult
- Less customization available than other options
10. RedTeam
RedTeam is the unknowing ally you need for contractors who want to take their game to the next level. Beyond RedTeam ERP’s core construction management features, it is an environment built to empower.
It provides unmatched capabilities for making decisions that are based on real-time data and insights. Whether you are a seasoned general contractor in the commercial sector or a budding subcontractor, RedTeam makes sure you are well-equipped, productive, and constantly changing.
RedTeam Best Features
- Customer service, including IT, is consistently excellent
- Makes the billing process smooth and crystal clear
- Consolidates various documents for all phases of the construction workflow
RedTeam Limitations
- Doesn’t function at its best on iPhones
- Occasional program bugs and flaws, but these are addressed quickly
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7 Signs of the Right Construction ERP Software
Instead of a construction ERP that wastes time and creates headaches, you want one that increases ROI and the bottom line. The seven elements that a construction ERP ought to have are outlined below, along with how they solve typical problems that contractors run into when conducting business.
1. Construction ERP Should Serve All Users
The fact that not everyone who needs to utilize generic ERP can get the most out of it is one of the main criticisms against it. You need a construction ERP that is versatile and meets the needs of each user, as different software functionality and capabilities may be required by executives, back-office specialists, and field operations users.
2. Construction ERP Should Provide Cost Controls
A precise picture of ongoing job costs must be offered by an ERP for the construction industry. To remain on top of things, get in touch with the right individuals, and make modifications as needed, you should ideally be able to view numbers for actual, predicted, committed, and pending costs in real-time. You might run into a ton of issues if your ERP software isn’t equipped to do this.
3. Construction ERP Should Integrate Billing Systems
Your billing system should not be an independent program; rather, it should be integrated with the rest of your software. Lack of integrated billing in your ERP software can quickly result in errors, inefficiencies, payment delays, and other possible issues. One of the greatest time-savers is an integrated billing system, which may be programmed to interact automatically with other building software features. You also won’t have to stress over bills that aren’t sent on time by someone.
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4. Construction ERP Should Automate Approval Workflows
Speaking of inefficiencies, inadequate communication and time lost searching for necessary papers can bog down approval workflows in the absence of a construction ERP. When looking for ERP software, automated document approval workflows that include digital access to source documents are a far better option.
6. Construction ERP Should Provide Digital Field Reporting
There is a place and a time for writing things down on paper, but it’s not always in the field, especially if the material being written down is significant. The construction sector is shifting toward digital document management systems and cloud-based access and sharing capabilities, even though a large portion of the sector still uses paper documents. Regretfully, even though digital field reporting has to be a fundamental component of your construction ERP, a lot of generic ERPs do not facilitate simple electronic field reporting through laptops, tablets, and other devices. Information may be entered considerably more rapidly and error-free when the field team is connected, reducing the possibility of data loss.
7. Construction ERP Should Include Tailored Functionality
As we previously stated, the various components of your construction company probably have distinct needs. Flexible features that make it simple to manage tasks like materials management, equipment management, and service management should be included in the ideal construction ERP software. This kind of customized construction solution streamlines business processes throughout your company and improves everyone’s quality of life.
Interpreting the Difficulties in the Construction Sector
Construction ERP solutions are made to address a wide range of complex issues that the construction sector deals with. The following are some of the main problems that ERP solutions try to solve:
Ineffective Procedures: Many construction companies continue to employ antiquated procedures that take up time and resources, from the bidding process through construction and the final walk-through. ERPs take their place with automated, simplified processes that have the potential to greatly increase productivity.
Overspending on the Budget: The construction sector frequently faces complicated and erratic budgeting. ERP software gives businesses precise, up-to-date financial data, allowing them to closely control their expenditure and avoid going over budget.
Communication Breakdowns: Delays or breakdowns in communication across several teams might result in expensive mistakes or delays. ERP solutions provide a single platform where all users can keep informed and in sync as well as real-time communication features.
Inaccurate Tracking: Inaccuracies frequently arise when labor, tools, supplies, and subcontractors are manually tracked. ERP systems give users accurate tracking tools, which improve the accuracy and dependability of project results.
Compliance Challenges: A wide range of rules and requirements for compliance must be negotiated by construction companies. The built-in capability of an ERP system guarantees that you stay compliant in many jurisdictions.
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Conclusion
Construction ERP (Enterprise Resource Planning) systems are a whole suite of software that unifies daily business activities, financials, and operations of your company on a single platform. Concurrently, the term “Construction ERP Software” describes ERP programs with capabilities tailored to the needs of the construction industry and created especially for construction enterprises.
One of the biggest and most complicated sectors in the world, the construction sector offers a vast range of goods and services to clients. To complete projects on time and within budget, a wide range of stakeholders—including architects, engineers, contractors, subcontractors, suppliers, and others—must collaborate effectively throughout the building process.
Software created especially for construction enterprises is known as construction ERP. It is intended to assist the business in managing all construction-related operations, including project management, scheduling of production, obtaining building materials, inventory control, and accounting.
Automating the entire construction process is the main goal of construction ERP. For instance, since all project data is kept in one location, the organization can keep track of every activity associated with a specific project. Additionally, the program gives the business the ability to track each employee’s performance and provide reports on it. Additionally, it enables remote project progress viewing for staff members.
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Resources:
TheAccessGroup | Kohezion | ViewPoint | Deltek | ERPFocus | ERPSoftwareBlog | Forbes | ClickUp
For all the pictures: Freepik
