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ERP for Construction

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Increasingly, construction companies are using ERP software that has been specially developed to automate business processes in this sector. It helps construction companies to keep control of the construction project and the associated administrations. Read more here about why you would opt for ERP software for construction and which functionality an ERP solution would preferably have for that.

The construction industry

The most important advantage of an ERP solution that has been specially developed for the construction sector is that specific functions that apply to construction are part of the ERP package and unnecessary functions aren't included. Good ERP for construction integrates commercial functions, such as calculation, CRM and purchasing, with financial-administrative functions and the administration and processing of service-oriented activities, maintenance tasks and renovation projects.

Functionality

You can read below what is important to be supported by the ERP software.

Specifications and measurement statement

The specifications describe all the activities of a construction project, as well as the requirements that are set for its implementation. The details differ per project, for example in terms of materials to be used, dimensions and color and techniques to be used. But much is also standard. The content of the specifications influences the price and quality of the construction project. Its purpose is to guarantee the clarity of the project and to prevent unnecessary errors and misunderstandings. What exactly should be applied to materials is described in the measurement statement. This concerns details such as quantities of concrete, bricks, reinforcement, tiles, roof tiles or brickwork. Architects make both the specifications and the measurement statement, usually in spreadsheets. ERP for construction must provide for the automatic import of the measurement statements.

Calculation of the cost price

The cost price can be determined based on the specifications and the measurement statement. Labor costs are derived from a good estimate of the required personnel. Own staff, temporary workers, all possible forms of this must be included. ERP software can help with this.

Determining the selling price

Once the costs have been mapped out, you can start compiling a quotation. Your selling price depends on the margin that you want to achieve on the project. This can differ per part of the construction project. You get all customer data, contact details and the commercial history with the customer from the CRM part of the ERP solution. With all the information together you can compile your offer sharply and without unnecessary risks.

Project management

The management of equipment and supplies is essential when carrying out your construction project. Good ERP software provides this with a modern dashboard and also offers you the possibility to do the time registration of the construction project, as well as personnel planning. Because much of the information about equipment and people must be available continuously at the construction site, there are more and more mobile ERP solutions that make this possible. Track and trace solutions are very functional.

Administration of additional and less work

Many costs of a construction project can't be precisely determined in advance. During the execution of the construction project, these deviate from what was budgeted in the tender phase. You can prevent financial setbacks by having a continuous overview of current costs and costs that are still to be expected. With the calculation functionality of your ERP software you can keep a grip on this and your margins will be monitored.

Financial settlement

Clients of construction projects agree in advance with budgets and quotes, in which the final costs aren't yet fixed. The actual costs become clear during construction and must always be approved separately. After an agreement, invoicing can take place. There are almost always many different partial invoices to charge for all costs. ERP software for construction has been prepared and set up for this. For the processing and payment of purchase invoices it's important that the ERP software can link all cost items to the same construction project and that the legal provisions in this regard can be fully met.

How do you select an ERP solution for construction?

The number of ERP providers offering an ERP solution specifically for the construction sector is limited. At the top of this page, a number of ERP suppliers with a specialization in the construction industry are mentioned. As with other business software, the ERP solutions for construction differ in functionality, scalability, rates, whether or not they are available as a cloud solution, the configurability and the possibility to add custom functionality, design of the software, the links with other systems, etc. In addition to these technical aspects, the aspects related to the supplier are also very important.

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