Enterprise resource planning (ERP) software is used in business management to store and analyze data related to a company’s business operations. They feature a database that can be accessed by multiple departments (such as sales and accounting), and are used to track everything from online purchases to payroll to inventory.
Because businesses in different industries have unique requirements, ERP software is rarely “one-size-fits-all,” and it’s important to use a platform that’s built for your industry. In this article, we’ll look at ERP software that’s designed for the construction industry, including examples of five ERP platforms that you can use for your business.
What is construction ERP software?
First, why is it so important to use an ERP platform that’s specialized for you? Partly, so that you’ll be able to accurately reflect all of your business activities.
The main purpose of ERP software is to help you see the big picture and how all of the parts of your business fit together. ERPs can help you automate recurring tasks, reduce friction between departments, and streamline your workflows.
With a generic ERP, you may have some of the components you need for your industry, such as inventory management and human resources management, but not all.
With construction ERP software, you’ll have additional tools that you can use to manage contractors and subcontractors, track purchase orders, receive bids, and more.
Construction ERPs can help you plan ahead, creating accurate budgets and timelines for your projects so you can purchase the raw materials you’ll need.
Managers can delegate tasks and view time sheets, even if their teams are distributed across multiple work sites or projects.
And, you can use your ERP to exchange information directly with clients and vendors, granting them access only to the data they need.
Even within the construction industry, though, different types of businesses may have their own set of requirements in an ERP. For example, a general contractor will have a different organizational structure and workflow than a developer.
That’s why it’s so important to understand how the different modules fit together, and which ones are most relevant for your team.
The following ERP modules are especially useful for construction companies:
Most construction ERPs will have a range of modules, including core features that come standard with the software, and additional options for more niche uses.
Inventory modules offer tools for tracking equipment, monitoring costs, calculating the materials used, and more. For example, you could use a wireless management system (WMS) to track the movement of equipment using a handheld scanner.
Logistics modules handle shipping and tracking, route management, sales orders, and other operational tasks. This might include loading up a truck, determining an efficient route and shipping schedule, and monitoring its progress to the destination.
Project management modules are used to get your projects completed on time, with tools for shop floor routing, waste management, subcontracting, and more.
Supply chain management modules cover procurement, purchase orders, point of sale transactions, sales order labels, and supplier relationship management.
Workforce modules deal with scheduling, time tracking, and task management.
Other modules, such as accounting and customer relationship management, are used in many industries, but can also be incorporated into your construction ERP.
The key to a successful ERP design is that everything is connected to a central database. If your teams have to log into multiple applications to do their job, then that defeats the purpose of having a centralized data repository.
A unified ERP design, in which data can be easily shared between departments, cuts down on data silos and reduces the complexity of day-to-day operations.
Here are five construction ERP software programs you should consider.
If you’re looking for an off-the-shelf ERP that’s designed specifically for the construction industry, these 5 ERPs are considered some of the best on the market.
But keep in mind that off-the-shelf ERPs, no matter how industry-specific, may still have limitations on how they can be customized and which modules are included.
Sage
Sage 300 is designed for use in the construction and real estate industries, with a focus on end-to-end construction and property investment.
The software is best for medium to large businesses with an interest in:
- Property management
- Job cost tracking
- Estimating compliance
- And more
Sage 300 offers mobile and cloud-based tools, such as document management, that your team members can access from their desks or on the construction site.
They also offer a product called Sage 110 Contractor, which is designed for smaller construction firms and can take the place of accounting tools like QuickBooks. For example, you can track overtime hours, unexpected material costs, and more.
Other features include Sage Service Operations, a customer service module that can be integrated with Sage 100 and 300 to improve communications with clients. There’s also ToolOps, which helps you avoid losing your tools by keeping track of them in the cloud, and ensuring that your teams have access to the gear they need on-site.
Epicor
Epicor is one of the most customizable off-the-shelf construction ERPs, with the option to install it locally and host it on your own machines, or deploy it to the cloud.
While more and more ERPs offer cloud deployment, that wasn’t always the case, and many legacy ERPs still require the customer to invest in physical infrastructure.
The benefit to hosting your ERP in the cloud is that your ERP vendor will be responsible for maintenance and security.
Cloud connectivity also ensures that you’ll be able to access your database in a wider range of cases, including on mobile devices and IoT (Internet of Things) devices.
You can also stay connected with your global workforce, with country-specific features that help you comply with regulations no matter where in the world you are.
With Epicor, you’ll also have the option of adding on additional modules, such as CRM or PLM, to further integrate your business operations across teams.
Maestro
Maestro is a Canadian company that offers construction ERP software with a focus on accounting and project management. It’s designed for heavy and civil contractors, trade contractors, service contractors, and more.
As with many new ERP platforms, it’s cloud-based, allowing your distributed team to access a “virtual office” any time they need to.
Maestro can handle everything from supply chain management to payroll, with built-in tools to monitor union rates and time sheets.
Their accounting tools use construction-specific cost codes, so you don’t have to keep track of your expenses using generalized accounting terms.
You’ll start off by choosing your core modules, then add on additional modules to meet more specific needs, such as dispatching and inventory management.
Penta
Penta is one of the oldest construction ERPs around, with over 35 years of experience building software for contractors. Of course, it offers plenty of updates to keep up with the pace of modern construction software and mobile devices.
Penta can handle payroll, accounting, project management, and more. It also has tools for business intelligence, including customized reporting and OLAP analytics.
You can use Penta for mobile field inspections, such as managing the inspection tasks in your work orders, creating question sets, and logging deficiencies.
Penta offers both a customer portal and an employee self-service portal, so you can cut down on postage and paperwork. Deliver online pay statements and company news to your employees, and share documents with customers using the same ERP.
Penta can be used by concrete contractors, industrial contractors, electrical and utility contractors, and more, with customizations available for specific niches.
Microsoft Dynamics SL
Dynamics SL is an ERP produced by Microsoft that is not specifically designed for the construction industry, but for any project-based business.
Still, many construction companies use it because of its versatility, with tools for project costing and materials management that are suitable for contractors of all kinds.
Prices vary depending on the number of users, and whether you deploy the software in-house or to the cloud. You can also add on modules from Microsoft’s suite of tools, making it a good choice for teams that have their hands in a variety of sectors, from private industry to government contractors.
Dynamics SL is built for collaboration, with role-specific access so you can share data with clients, or grant Light User access without paying the full user subscription fee.
Or you can build your own.
In some cases, none of the existing software options are just right. Maybe you work in a very specific niche in the construction industry, and you want an ERP that’s built to your specifications. Or maybe you just want one with more engaging UX design.
In the end, it may be more cost-effective to build an ERP than to pay a subscription fee to an SaaS platform, especially if you add more users as your company scales.
Whatever your requirements, the team at Zibtek can develop a custom ERP solution for your business. Zibtek can either design a new ERP from scratch, with all of the modules you need, or upgrade your legacy ERP into a shiny new user-friendly model.
Either way, you’ll end up with a customized platform that helps you track and streamline your business operations and boost your ROI. Reach out to Zibtek to get started building your new construction ERP today!