What Is Construction ERP?  

What Is Enterprise Resource Planning (ERP) Software? 

Enterprise Resource Planning (or ERP) software is a comprehensive and centralised system which allows companies to streamline and manage their business operations. Supporting multiple functions across the organisation, ERP software allows businesses to manage their: 

• Finances 
• Project Management 
• Accounting 
• Manufacturing 
• Risk Management 
• Procurement 
• Compliance 
• Supply Chain Operations 

By consolidating and presenting all data and information within a singular platform, ERP software provides mid- to large-scale businesses with the means to synchronise all their departments, teams, and projects. This holistic approach enhances efficiency, transparency, and collaboration across the organisation, helping companies to become more efficient and increasing profitability. 

What Is Construction ERP Software?  

Designed for the specific needs of construction companies, construction ERP software enables the effective management of contractors, subcontractors, materials, plant and costs across multiple projects and sites.  

There are many moving parts to any construction project, presenting several management challenges especially when spread across multiple sites or regions. Construction specific ERP software takes the essential modules of standard ERPs and tailors them to project-driven approach of the construction sector. 

By providing construction-specific solutions, construction ERP software helps you to streamline and automate your key processes, enhancing your efficiency and unlocking profitability. 

How Is Construction ERP Different To ERP?  

Some larger ERP systems are more customisable by design and could be adapted to better suit the needs of a construction company. However, there are several unique features that separate construction-specific ERP from the standard offering.  

General ERP systems offer a wide variety of features and lend themselves naturally to traditional commercial or manufacturing businesses.  

We will delve into the specific features of construction ERP software a little later, but for now let’s discuss at a high-level what separates construction ERP from the traditional alternatives: 

 

1. Built For Projects 

The construction industry's project-centric approach is not only its defining characteristic but also what sets it apart from other sectors. The industry’s core approach to delivering these projects simultaneously across multiple sites makes project management extremely complex. 

Construction ERP software helps to streamline this by providing comprehensive project planning modules enabling you to estimate operational budgets, alongside managing materials, delivery schedules and your workforce.  

With increased workflow visibility, construction ERP software allows all your teams and departments to work seamlessly with one another, sharing data in real-time across all shareholders.  

 

2. Job Costing & CVR (Cost Value Reconciliation) 

A key stage of any construction project, Cost Value Reconciliation (CVR) allows you to compare the actual cost of your construction projects with their estimated cost.  

By integrating construction ERP software into your business, bespoke CVR modules can help your teams understand the margin movements of a project and to determine its profitability or suitability. Through powerful and insightful reporting, you can more easily identify any discrepancies and better allocate potential budget. 

 

3. Helping You Meet Current Regulations 

Operating and growing a successful construction company in today’s environment is a complex undertaking. With shifting industry demands and regulations, keeping up-to-date with the latest legislation can be a challenge to accommodate.  

With construction ERP software, specifically cloud-based ERP systems, your service package ensures that the platform is consistently updated in line with current regulations.  

Just recently, the UK government published a new set of standards for carbon emissions in both new and existing buildings in England. Under the new Part L regulations, It is vital for construction companies to keep detailed records of materials and methods used in the construction process. Alongside this,  photographic evidence should be collated in each step of the build. 

As a direct result of these changes, construction ERP software must now launch new functionality to help keep businesses compliant, through features such as geotagged photographic evidence and automated BREL reports.

Why Use Construction ERP Software?  

To efficiently and reliably deliver projects on-time and within budget, construction companies require full visibility and control over their materials, costs and their workforce. Construction ERP software is an integrated end-to-end solution designed to manage the full scope of a construction company’s operations.  

Some of the main advantages of using a construction ERP software include: 

• Single Data Source: ERP systems provide you with an end-to-end integrated system, which centralises all your data in one place. This helps teams to seamlessly share and exchange information in real-time, ensuring clear communication between all your project’s stakeholders. 
• Streamlined Workflow: Construction ERP software transforms workflow visibility by providing a real-time shared database accessible anywhere at any time. From managing your workforce to communicating with third-party contractors, construction ERP ensures that you can find real-time solutions to problems as they arise. 
• Cost & Financial Management: ERP systems enable you to generate accurate project proposals based on company and industry historical data. By integrating all aspects of project costs and finance, your company can accurately track projects, in order to keep them within budget. Furthermore, by using real-time operational and financial data you can make better business decisions. 
• Risk Management: The integrated nature of construction ERP software helps construction companies manage risk by proving best practice solutions for every stage of a project’s lifecycle. With regular updates made in line with regulatory changes, and full visibility of costs and risks across the business, you are always in control. 

Learn about the many benefits of using Construction ERP by reading our article : Benefits of Using ERP In The Construction Industry – Reviewing The Pros and Cons Of An ERP System

What Are The Key Features Of Construction ERP Software?  

Construction ERP software combines multiple core components into one comprehensive end-to-end system designed to help streamline your business operations. Here we will touch on the core features that define construction-specific ERP software, highlighting the ways in which they differ from regular ERP systems. 

 

Cost-Value Reconciliation (CVR) and Financial Management  

Traditionally a labour-intensive process, cost-value reconciliation involves creating a detailed estimate of costs for an upcoming project. By comparing the baseline budget of a project with the actual projected costs, project managers are able to identify discrepancies and take corrective measures where necessary. 

By using CVR reporting modules with construction ERP software, construction companies can automate this process, freeing up time for those traditionally involved. CVR reporting within ERP software also mitigates the risk of human error during the reporting process, circumventing miscalculations or incorrect costings. 

Want to learn more about CVR? Read our article: What Is Cost Value Reconciliation (CVR) In Construction?  

 

Procurement  

Construction ERP software automates and streamlines the procurement process, from requisition to purchase order creation. This reduces manual paperwork, minimises errors, and speeds up the overall procurement cycle.  

Additionally with real-time inventory management, ERP systems offer full visibility of inventory levels, allowing you to better plan and avoid under- or overstocking. With seamless integration into the financial modules, construction ERP software also provides a clear overview of costs at every step of the procurement process, improving the financial health of your projects. 

Explore our construction procurement solution >

 

Document and Drawing Management  

Construction-based ERP software improves the management of your documents and drawings, by providing a centralised platform for organising, storing, and accessing crucial project documents and drawings.  

Through remote access, relevant members of your team can collaborate on and share documents in real-time, supported by a comprehensive audit trail which provides transparency on any tracked changes.  

The end-to-end nature of ERP software also means that all documents and drawings are accessible between modules, allowing you to pull 2D drawings or 3D models into other modules.  

 

Materials and Plant Management  

Construction ERP software offers a comprehensive solution for tracking, managing, and optimising the use of materials and equipment. Through real-time visibility your business can streamline operations, reduce waste, and enhance project efficiencies.  

By providing an accurate insight into current inventory levels and equipment availability, teams can make informed decisions, preventing costly delays and overruns. Leading ERP software also includes demand forecasting, helping you plan for the materials needed to deliver your projects, ensuring that they are adequately supplied, minimising disruptions and keeping costs in check. 

Additionally, construction ERP software provides robust tools for monitoring the utilisation and maintenance of plant and equipment. By tracking usage patterns and maintenance schedules, teams can proactively address issues, extending the lifespan of assets and avoiding costly replacements. This level of control and insight empowers construction companies to maximise the return on their investments in materials and equipment, ultimately contributing to the success and profitability of projects. 

  

Labour Management and Payroll  

The construction industry has unique challenges when it comes to managing their workforce. As a sector that depends on third-party teams and sub-contractors, managing these disparate teams can become a challenging task.  

Construction-based ERP software provides a centralised platform, tailor-made to the construction sector, designed to efficiently allocate and track labour resources. The unique scheduling features, ensures that the right people are deployed to the right tasks at the right time, based on availability and skillsets.  

Additionally, the software automates payroll processes, accurately calculating wages, deductions, and overtime. This eliminates manual errors, ensures compliance with labour regulations, and can help HR teams save valuable time which can be spent more efficiently elsewhere. 

Furthermore, construction ERP software enables full transparency in managing your workforce. Supervisors can monitor attendance, work hours, and performance in real time, facilitating timely feedback and performance evaluations.  

 

Supply Chain Management  

Construction-based ERP software offers real-time visibility into the procurement process, enabling accurate demand forecasting and inventory optimisation. This leads to reduced lead times, minimised excess inventory, and improved cost control. Additionally, the software automates procurement workflows, streamlining purchase requisitions, approvals, and order processing. This not only saves time but also ensures compliance with procurement policies and industry regulations. 

Most importantly, construction ERP software enhances communication and collaboration, by ensuring that everybody involved has access to the same information. No matter which point in the supply chain you are in, suppliers and contractors are connected by the same infrastructure. 

This leads to smoother transactions, fewer disputes, and stronger relationships with your suppliers.

When Should A Construction Business Consider ERP Software? 

Implementing an ERP system is a substantial investment, and it's important to approach it with careful consideration. It's worth noting that a construction company should reach a certain size before contemplating the adoption of a comprehensive ERP system.  

This typically involves having the necessary IT infrastructure and staff in place to adopt and maintain the software, along with being able to support the initial costs. These costs include the initial set-up, training and ongoing hosting costs, which mean it can be a considerable cost for those not ready for this transformation. 

In essence, ERP is not a one-size-fits-all solution, but rather a strategic tool tailored for companies poised for growth and digital transformation. 

For construction businesses, the decision to implement ERP should align with their operational scale and aspirations. It's best suited for companies that have already reached a level of maturity, have the resources to support and maintain the system, and are actively seeking to propel their business forward through digital innovation.  

By carefully evaluating your company's size, infrastructure, and growth trajectory, you can determine the optimal time to embark on the journey to ERP system integration.

Access COINS ERP Is Built For The Construction Sector 

Access COINS is an easy-to use, fully integrated, modern solution that brings everything construction teams need together in one place with a single login. 

• Take control of your construction projects 
• Connect your team with our cloud-based software and achieve the next level of collaboration 
• Boost profitability with accurate real-time financials and forecasting dashboards 

Talk to our construction software specialists about how Access COINS ERP can transform your construction business and see the power of COINS in action.