Enterprise Resource Planning (ERP) software has become a core component of enterprises around the world. In construction firms, however, the adaptation of ERP systems is well behind that of other industrial fields. The challenge of interconnecting projects is important because it is a highly heterogeneous sector with a great range of specialties and wide differences in the size of companies. The main objective of this research is indeed to examine the effect of ERP on the construction industry and to evaluate the aspects to assess the readiness of the ERP due to its implementation.
Construction ERP software combines various software systems into one complete solution, such that construction managers can have resources to manage a project’s entire lifecycle effectively, including:
- Estimation of Costs
- Management of bids
- Contract and Order of Procurement (PO) management
- Scheduling Project
- Control of inventories
- Management of the building and facilities
- Control of documents and workflows regarding draughts, RFIs and RFPs
- Monitoring for productivity/performance
- HR and processing of payrolls
As the use of inappropriate accounting, scheduling, and document management software will significantly impede the progress of construction projects and the growth of the business itself the connectivity of these modules is important. The consequences of having non-integrated systems and software solutions become increasingly harmful to the construction project as unforeseen circumstances arise. Let’s take a look at how you can better handle your construction company with an ERP system.
Construction firms still have so much to deal with from customer handling, project management, cost estimates, staff management to procurement management and this can become more and more difficult when you have a fast-growing company.
If you have many building projects going on and have several workers to handle, keeping up with all the moving parts is difficult. You will thus end up experiencing mistakes and errors.
Improving Internal Communication
The key to project success in the construction industry is excellent communication. However, one of the common challenges often faced by construction companies is maintaining effective contact between departments. Disconnections can slow down operations and business processors within departments, which can impact project deadlines.
An ERP system has built-in video capabilities for workers to communicate easily in chat forums. Through this, you will be able to strengthen the organization’s internal contact in a way you never thought was possible. The workers would be able to have group chats to communicate with each participant involved in the project via the chat forum. Thus, without any delays, everybody will be able to get updates and be part of the discussion and get useful information.
Can Operate from Anywhere at Any time
One of the major advantages of ERP software is that the device allows you to access information from anywhere at any time. With this the company will have the freedom to keep your systems online 24/7, enabling your workers from everywhere to access the required materials.
For example, from your laptop or mobile phone, you get the opportunity to access all the documents and information about a project regardless of where you are. This means that with photocopies of a text, you won’t have to take huge files around with you.
Efficiency in Making Decisions
All the information and activities of the company have been centralized by an ERP system, thereby offering a clearer view of circumstances before making decisions. The scheme allows you the power to track all the specifics of the situation, meaning that during the decision-making process, nothing is missed.
The system will help you extract all the essential information from various sources and provide the right requirements before fulfilling a request to make changes as needed.
Typically, construction firms conduct projects for their customers on a contractual basis. Companies have to bid on the project with their cost estimates to purchase a project. Here, based on client requirements, the company with the best concept and best-proposed cost estimate will have the project.
Precise Calculation of Costs and Revenue
When planning cost estimates, an ERP system is very helpful. It will allow you to measure the cost of raw materials, design, and labour accurately. And, overhead liabilities for projects that take several months to complete will be measured correctly. You would therefore be able to provide the customers with a reliable cost estimate where when carrying out the project, the actual cost does not deviate much from the estimated cost.
In this digital era, construction companies should hurry to embrace the new technologies that can take their industry to the next level. The construction ERP software will make operations go faster and easier, lowering costs while reducing the manual workload. AxolonERP is best among the top 10 providers of ERP in UAE, Qatar, Bahrain, Saudi Arabia, and Africa. We provide you with the absolute best construction ERP software with a great user experience. Click here to Request a free demo.