How ERP Systems Benefit the Construction Industry
More than $1 trillion in expenditures goes into the construction of structures each and every year. Because so much money is on the line, you need to allocate resources in the most effective way possible. All companies in the construction industry should look into adopting enterprise resource planning (ERP) software. There are several platforms you can look into for the projects you have on your hands. Read on to learn more about construction ERP software and how it can take your business, and all your projects, to the next level.
Why Using A Construction ERP System Can Be So Helpful
Technology is taking the construction industry by storm in a lot of ways, and ERPs are a big reason. An ERP is a type of software that lets you manage each and every aspect of a construction project. Here are a few of the reasons that these software platforms are beneficial:
1. You Will Be Better Able To Manage Your Construction Project Finances
Your construction accounting will be accurate and precise when you make use of an ERP. With so much money at stake, you’ll need your accounting to be as detailed as possible.
The software has built-in features to better estimate your project budget, materials costs, revenue, and more. As such, you will make better spending choices, and will have a better handle on where and how each and every dime is spent.
2. It Makes For Clean And Accurate Reporting
Reporting is a huge factor in any sort of construction project. It is the backbone and foundation of your decision making, so you’ll need accurate details and data every step of the way. Using an ERP allows you to have a huge reporting archive to draw from, which optimizes your construction projects and your ability to address challenges head-on.
3. Your Team Will Communicate Better And Stay On One Page
Perhaps the biggest reason to invest in an ERP is that it improves your communication and collaboration. Construction projects are broken down into teams that handle everything from cement work, architecture, engineering, electricity, plumbing, roof, demolition, and cleanup.
With so many different moving pieces, the best thing you can do is keep all of these teams on the same page. An ERP allows you to do that seamlessly since each segment will be able to log in and access pertinent information. Making this collaboration simple prevents mishaps and miscommunications that can hinder your construction projects.
4. Forecasts Can Be Made With Greater Precision
Having access to the right information makes it so that your forecasts are more accurate. ERP systems make use of algorithms and projections that are useful for your construction planning.
These software packages allow you to use the best tools, graphs, and forms of artificial intelligence (AI) to handle your forecasts with confidence. Whether you’re working on a single project or working on a series of developments, having access to an ERP will make you better at what you do.
5. These Systems Are Easily Integrated And Used On The Fly
One of the best perks of an ERP is that it is mobile optimized and able to be used across different platforms. The information is kept in a secure cloud account, letting people log in remotely on any sort of device.
This streamlines the way that you do business and prevents snags and delays in the process. You will have far fewer barriers to progress and will be better able to manage every aspect of your construction project in the process.
6. The Software Makes It Easier To Nail Deadlines
If you’re going to put together or maintain a solid construction firm, hitting deadlines is of the essence. You can lose time and money, and even face financial penalties when you miss deadlines.
Using an ERP allows you to stick the landing with your deadlines, which allows you to be more professional across all of your projects. What’s more, you will also have better human resources (HR) tools that will allow you to better track data, reportage, compliance, and pay your team on time and accurately.
In addition to better payroll, you’ll have a cleaner archive of all contractors’ paperwork and insurance information. ERPs also allow you to more easily log and report injuries and report payment grievances and other issues.
When you avoid hiring and HR snags, your construction company will be a lot more efficient as a whole. This lets you plan your future more seamlessly and take care of the necessary red tape that comes with these projects.
7. Improve Your Return On Investment Or ROI
The leading cloud ERPs designed for construction have clear and consistent pricing models. This means you know exactly what you are going to pay one year, two years, and five years down the road. You should ask your software partner to give you a five year ROI over your legacy system so that you can see the return for yourself. With cloud accounting ERPs, typically you don’t have surprise hidden costs like maintenance, per user licensing, and software upgrades and updates. Over time, this saves you money.
Last, you can save your team hours every week by automating and streamlining your processes using cloud ERP technology. This time can then be used to focus on higher-level, company-advancing projects that will bolster your company’s future in your market.
Invest In An ERP That Helps With Your Construction Needs
When you invest in a cloud construction ERP it will help you take all of your projects to the next level. The good news is, you have options! There are several ERP software platforms that are designed specifically for construction work. Let the experts at Bangert take a deep dive and analyze the needs of your business today.