The construction industry has had to face multiple challenges in recent years: the growth of wage costs, the increase in materials, etc. These circumstances make efficient resource management more relevant than ever. Therefore, having an ERP in construction is essential help if you want to stand out from the competition. However, not all tools have the same functions.
ERP (Enterprise Resource Planning Systems) focused on construction must be able to control operations in real time, plan your projects, manage your accounting, and even the human resources of your company. We will talk about all this in depth in the following sections. We will also help you find the best ERP for construction companies, the one that fits your business depending on the type of work you need to carry out.
What is an ERP
The acronym ERP refers to enterprise resource planning. These programs are specifically designed to control the operations and processes of organizations. However, over the years these tools have acquired additional functions that allow you to do without other programs.
Furthermore, those that are essential to you, in many cases, can be integrated within the same platform. So everything is just a few clicks away and the information is very easy to interpret.
The greatest virtue of ERP software for construction companies is that it makes it possible to automate many daily tasks. This is possible thanks to the large amount of data it is able to collect daily, as well as its multiple applications within the company. This eliminates additional labor and reduces the risk of human error.
As a result, process duplication decreases. Since the program integrates with other platforms such as CRMs, data does not have to be entered manually into other applications either. All of this results in greater efficiency and considerable time savings.
Finally, ERP software for construction companies is also a powerful resource for information analysis. It facilitates the export of different automatically generated reports in which only the information needed at any given time is displayed. Thanks to them, it is possible to make the right decisions more quickly. Something vital when a work is unfinished or when the contract for a new project is acquired.
How it benefits having an ERP in a construction company
Not all companies have the same needs. Therefore, it is decisive to have an ERP in construction that meets the requirements of this sector . In the case of construction, it is a priority to focus on the management of the different projects. To materialize this, there must be the possibility of preparing budgets and invoices, but also that adequate monitoring of progress can be carried out. In addition, there are many other specific requirements of this industry that are also advisable to assess.
Cost control is another priority that deserves your attention, as well as the speed with which new materials are received. Construction should never be interrupted, otherwise valuable resources will be lost. Thus, this type of program should allow you to acquire the relevant materials quickly and at the best price. To this end, ERP systems for works and renovations are developed with the ability to generate orders automatically . However, human intervention is also vital in these cases. Therefore, it is possible to place both manual and autonomous orders.
Another notable characteristic of ERP programs for construction companies has to do with the management of human teams and the organization’s assets. Knowing which worker is on each project, sending the right personnel or the necessary machinery to carry out a certain task are vital functions. Finally, we must emphasize the financial management of the business.
This aspect is taken into account and ERP programs are capable of showing all material movements, but also different consumption or acquisitions. All of this with the aim of visualizing the real situation at all times in a very graphic and intuitive way. The ability of these programs to create graphs from the information they have in their database also contributes to this.
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Characteristics of the construction sector
The construction industry is in constant evolution and has particularities that do not affect any other sector. Next, we are going to delve into the most important ones so that you take them into account.
Project Duration
This is one of the most special characteristics of construction companies, and that is that the duration of the work is subject to great variability. You may come across a small renovation that does not require more than an hour of work, but there are also other medium-term projects such as, for example, a comprehensive renovation lasting several months. Or even others that have a longer ending and that can involve several fiscal years. This is the case of large public works, construction of complete buildings, etc.
Therefore, the planning of all these works must be carried out in a detailed manner, and must also be subject to certain changes. Sometimes weather conditions prevent outdoor work. This may lead to small delays that should be avoided if possible. Either by modifying the daily work report with other tasks that can be carried out or by sending workers as reinforcements to another job. Therefore, flexibility must be an active part of the daily routine.
Changes in costs
The variable costs of construction companies experience significant changes in a matter of a few days. The prices of materials are constantly changing and this can lead to inconvenience if a previous quote has already been provided. Therefore, it is advisable to attend to these aspects when billing clients and keep very precise control of all the costs associated with these situations. All this is easier and more agile by opting for the incorporation of an ERP for construction companies .
Subcontractors
Most construction companies use third-party companies to complete the works. Whether it is electrical work, plumbing or even metal carpentry, the completion of a work does not depend only on the company that acquires the contract with the client. In this sense, it is very important to properly manage these external resources.
Thus, it is necessary to write down each contract that is signed with other companies, as well as the completion deadlines for each of the jobs. All of this must be reflected in writing in the ERP for construction companies that you select.
Current legal framework in each job
Roaming is something intrinsic to construction companies. Most jobs are usually carried out in locations other than the company’s headquarters. This is because its area of influence is vast. Likewise, it represents a significant challenge in many cases, since regulations differ in each municipality.
The building permits, public road occupation licenses, etc., are different in each place. Not even the amounts of taxes are maintained equally in all places. Although it is usually the client who must be responsible for these payments, in many cases, the processing of permits corresponds to the construction company. Therefore, it is advisable to know the different legal requirements and have the ability to adapt to possible changes.
How to choose ERP for construction
There are several factors that can lead you to make the decision to work with ERP software for construction companies. We have already told you about all the peculiarities of this sector, and all of them must be taken into account when developing these programs. Next, we are going to show you some features that you should consider before opting for your ERP for construction.
Cloud operation
This is an essential feature that cannot be missing from your ERP for works and renovations. Cloud or cloud programs only require an Internet connection to function. This allows them to be used from anywhere and with all types of devices. On site it is not always possible to have a computer, so this aspect becomes decisive.
At the same time, the control of materials, construction progress or other technical aspects can be controlled remotely and in real time. Quantity surveyors, construction managers and other employees with middle management can know the current situation at all times without having to travel. When the number of projects is high , this function is highly appreciated and saves a large amount of time and money for the company.
Another advantage associated with cloud construction programs has to do with security. All data is stored remotely, so it is not at risk or exposed if an employee loses their cell phone or has their computer stolen.
Customization and scalability
Company growth should always be a priority, and the ERP program for construction and renovation that you select must be able to adapt to new circumstances. Therefore, it is imperative that it be scalable. That way, you will always be able to have the help of the program in your daily life and you will not be forced to change computer providers in the future. This is very important, since all workers will quickly become accustomed to using the tool, and any change can affect their productivity.
Helps control costs
The program you choose should be able to help you manage all your resources. This includes the materials required to undertake the work, the machinery you will need, the employees who will have to travel to the site or the subcontractors with whom you will work.
Likewise, it must be designed to manage all material purchases in order to optimize costs associated with shipping, discounts for rappelling or constant maintenance of stock.
Support and technical service
The company that develops the ERP for works and renovations is the one who knows its product best. Therefore, the ideal thing is that you can contact one of their customer service employees in a simple and comfortable way for you. Furthermore, the quality of care must be up to the task, given that the future of your business is at stake.
This valuable and efficient attention should be one of the main reasons when evaluating the implementation of the best ERP for construction companies that you can hire. In addition, the after-sales service must also be responsible for keeping the ERP software for construction companies permanently updated and must periodically report on new functions that are integrated into the application. All of this contributes to you obtaining a service with more added value and more useful for your business.
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