6 Main Benefits of ERP Software in the Construction Industry

Companies in the construction and construction industry must be able to prove themselves in a competitive and challenging market environment where the use of material resources and a high degree of flexibility in project management are very important.

Intense national and international competition increased administrative requirements and strong pressure to innovate require entrepreneurs to have the support of advanced business solutions that can simplify complex and unique construction processes.

ERP software offers a variety of integrated solutions that support all aspects of construction activity, from planning, project control, cost estimation and revenue. Here are six main advantages of ERP software in the construction industry.

1. Optimize planning

Poor planning as part of a construction business leads to the completion of substandard projects and even the downfall of the business.

Contractors can suffer heavy losses in the form of labour costs and loss of business due to the premature completion of goals. The delay in project delivery due to a lack of planning also reflects poorly on the goodwill of the company.

The planning of the required raw materials, the efficient use of the work, the architectural design and the schedules are essential to ensure a good canalization of the resources.

The construction ERP software can be implemented to plan expenditure control and budget allocation. It also helps to avoid unnecessary downtime and contractual problems with customers throughout the project.

2. Streamline project management

The division of tasks and the monitoring of the progress of projects in several workplaces have always been difficult in the construction sector.

With the help of an ERP system, construction managers can easily monitor the status of each project, create milestones, delegate tasks to the right staff, and track employee timelines with just a few clicks. Real-time data allows contractors to track the amount of time each staff spends on each task, making it easier for them to bill customers.

3. Facilitate the estimation of costs and revenues

Most construction companies work on a contractual basis with their clients. Before acquiring the tender for a project, they are required to bid for the project with their estimated costs.

Given that different clients have different priorities, the most appropriate offer is chosen based on the proposed design, the company's reputation, and most importantly; the estimated costs proposed.

ERP software can be used to determine the precise estimate required for raw materials, design, labour and project completion time so that the actual costs do not deviate significantly from projected costs.

In addition to estimating costs, the construction ERP software also allows contractors to determine the number of their revenues or the number of losses and profits they get from each project. They will be able to better manage the time and costs used for future projects.

4. Simplifying the Exchange of Information

Larger construction companies handle more than one customer at a time, because of which the exchange of information within the company can become tedious and confusing.

Managing and compiling data for many tasks in the form of Excel spreadsheets or PowerPoint presentations are very inefficient and impractical, not to mention this is not a safe way.

ERP software makes the data exchange easier through the resources and firewalls that support optimal data security. Contractors can also provide restrictions on their data; which one can be shared with the client or which one can be seen by the employees.

5. Improving the Decision-Making Process

The centralized system provides a comprehensive view of a particular situation prior to making decisions. Responses to data requirements for the supply of data and the supply of data in the supply chain.

For example, before making a purchase order for certain raw materials, the budget report has been submitted to the project manager, based on what they refer to the engineering team and the formulated construction design. Based on this design, the purchasing manager is the author of the purchase manager.

6. Increasing ROI

ROI can not only be measured in the form of money, but also in the form of other benefits. Regardless of how it is measured, contractors certainly want to increase their ROI from time to time. This can be achieved easily with the help of ERP software.

ERP software allows construction companies to eliminate manual, time-consuming and labour-intensive processes, reduce costs, reduce IT costs, get rid of unnecessary downtime, and meet project deadlines.

Cappiyo Construction ERP Software consists of modules that support the optimization of overall construction business operations, ranging from project and contract management, accounting management, inventory management, asset management, to HR management. 


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