What Is Construction ERP?  

What Is Enterprise Resource Planning (ERP)? 

Enterprise Resource Planning (or ERP) is a complete digital system, either hosted on the cloud or on-premise, which provides companies with a centralized solution to manage activities such as accounting, procurement, supply chain management and day-to-day operations. It is designed to streamline and manage business operations, enabling a seamless flow of data between each area of your organization.   

Most ERP software on the market today include features to manage your:   

• Financial management 
• Project management   
• Accounting   
• Field service management 
• Risk management   
• Inventory control 
• Regulatory compliance 
• Supply chain management   

ERP consolidates a company’s data and information within one platform, providing mid-to-large-scale businesses with the means to integrate all their departments, teams, and projects into a central space.   

The holistic approach of an ERP provides companies with better efficiencies, transparency, and collaboration across the organization. Today, ERP has become a critical part of many businesses of all sizes, becoming an indispensable part of their operations. 

What Is Construction ERP Software?  

Construction ERP is a sub-category of ERP (Enterprise Resource Planning) which has been designed specifically for the needs of the construction sector.  

With processes and features tailored to the project-oriented construction and service landscape, construction ERP enables the efficient management of contractors, subcontractors, materials, equipment and costs across multiple projects and sites.     

Construction projects present several unique challenges to contractors and construction professionals, who are frequently being spread across multiple sites. Construction-specific ERP platforms build on the essential modules provided by standard ERPs, tailoring them to the construction sector.    

By choosing construction-specific solutions over generic ERP systems, companies within the built environment can better streamline and automate their key processes, enhancing efficiencies and unlocking hidden profitability.   

How Is Construction ERP Different To Generic ERP?  

There are a number of key differences between Construction ERP and generic ERP systems.  

1. Construction ERP is Built For Projects and Services

The construction industry's project-focused approach to work is a defining characteristic that also sets it apart from other sectors. Most commonly, construction businesses are responsible for managing multiple complex projects simultaneously across multiple sites. This makes project management extremely complex for general contractors.    

Construction ERP streamlines this by providing comprehensive project planning modules enabling teams to estimate operational budgets, manage materials and schedule and dispatch technicians. 

Many construction ERPs also have specific modules to handle the dynamic capture of construction projects, such as change order management and RFI management.   

With increased workflow visibility, construction ERP systems field-teams and back-office departments to work seamlessly together, sharing data in real-time across all project shareholders. 

2. Construction ERP is Built with Compliance in Mind 

Operating and growing a successful construction company in today’s environment is a complex undertaking. With regulations shifting from state-to-state, keeping your business compliant with current regulations can be a challenge.  

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

Furthermore, leading construction ERP platforms provides automated regulatory features, providing you with the right restrictions for your area. With built-in risk management, construction ERP helps to keep your entire organization compliant and responsible. 

3. Job Costing and Cost Value Reconciliation (CVR) 

Unlike generic ERP systems, construction ERP includes robust job costing functionalities that allow detailed tracking of costs associated with each project phase.   

This can include labor costs, material expenses, equipment usage, and overheads specific to construction projects.  

Additionally, construction-specific tools such as Cost Value Reconciliation (CVR) provide real-time visibility into project profitability by comparing actual costs against estimated values throughout your project’s lifecycle. 

Read more in our guide to Construction ERP Vs Generic ERP 

Construction companies require full visibility and control over their materials, costs and their workforce to efficiently and reliably deliver projects on-time and within budget.  

Construction ERP is designed as a complete end-to-end solution, purpose-built to manage the full scope of your construction company’s operations.     

To help you decide if Construction ERP is the best solution for you, here are some of the main advantages of using a construction-specific ERP:  

1. Single Source Of Data 

ERP systems provide you with an end-to-end complete system, which centralizes your data in one place. Seamlessly share and exchange information in real-time, ensuring clear communication between all your project’s stakeholders whether they’re in the back-office or in the field.    

2. Streamlined Workflows  

Construction ERP transforms workflow visibility by providing a real-time shared database accessible anywhere at any time. Manage your workforce and communicate with specialist contractors more effectively, as construction ERP provides real-time solutions to problems as they arise.    

3. Accurate Forecasting 

To keep your business profitable, you need to understand your project’s margins and costs at a glance. ERP systems generate accurate project proposals based on current and historical data to help forecast your costings. Accurately track projects, with a platform that reevaluates costs when any changes are made, helping you monitor your margins.     

4. Risk Management 

Construction ERP helps construction companies manage risk by proving best practice solutions for every stage of a project’s lifecycle. With automated regulatory processes  and full visibility on your wider business, you are always in control.    

Construction ERP is a comprehensive suite designed to provide a central management system for your business. From daily operations to HR and accounting, construction ERP is a complete tech stack built into an integrated platform.   

Here we will touch on the core modules that can be found in leading construction ERP today, highlighting the ways in which they differ from regular ERP systems.    

Financial Management  

Traditionally a labor-intensive process, managing project margins and reconciliation processes are built into construction ERP. With automated tools for comparing your baseline with projected costs, project managers are able to identify discrepancies at a glance and take corrective measures where necessary.    

Moreover, construction ERP provides contractors with powerful tools to track, manage and forecast project earnings, monitor budgets and generate invoices. Supported with company-wise real-time data and being fully integrated with other modules, contractors always have what they need on-hand. 

Read more about Access Coins Construction Financial Management > 

Procurement and Inventory Control

Construction ERP automates and streamlines the procurement process, from requisition to purchase order creation. With automated functionalities for the most repetitive tasks, construction ERP reduces manual administrative work, minimizes errors, and speeds up the overall sourcing process.  

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

Read more about Access Coins Construction Procurement >

Document and Drawing Management  

Improve document management with Construction ERP, designed to store, track and manage your documents and drawings. The centralized platform organizes and monitors access to crucial project files, ensuring they are only available to those that need them.     

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

The complete and fully integrated nature of ERP systems also means that all documents and drawings are accessible between ERP functions, allowing you to pull 2D drawings or 3D models into other modules. 

Materials and Equipment Management  

Construction ERP offers a comprehensive solution for tracking, managing, and optimizing the use of materials and equipment. Streamline operations, reduce waste, and enhance project efficiencies with complete visibility across each of your business areas.  

With built-in demand forecasting, you can more readily plan the materials required on each of your projects, ensuring that they are adequately supplied and minimizing disruptions in the event of a shortage.  

Additionally, construction ERP provides robust tools for monitoring the utilization and maintenance of your equipment. Track usage patterns and maintenance schedules, to proactively address wear and tear, extending the lifespan of assets and avoiding costly replacements.   

This level of control and insight empowers construction companies to maximize the return on their investments in materials and equipment.  

Read more about Access Coins Construction Equipment Management >

Labor Management and Payroll  

The construction industry has unique challenges when it comes to managing workforce. Dependence on outsourced work and third-party contractors requires businesses to be fully aware of each individual skillsets and qualifications.     

Construction-based ERP systems provide a centralized platform, tailor-made to the construction sector, designed to efficiently allocate and track labor resources.   

The unique scheduling features ensure that the right people are deployed to the right tasks at the right time, based on availability and training and qualifications.     

Additionally, the platform automates payroll processes, accurately calculating salaries, deductions, and overtime pay. With a growing number of labor laws and compliance issues being introduced across the United States, it’s even more essential your chosen solution supports compliance and regulatory standards.    

Read more about Access Coins Construction Workforce Management >

Supply Chain Management  

Construction-based ERP offers real-time visibility into the procurement process, enabling accurate demand forecasting and inventory optimization.   

With powerful features to report and track various aspects of the supply chain in real-time, construction ERP helps to ensure everything is running smoothly and identify issues when they occur.  

This results in reduced lead times and improved cost control. Additionally, the system automates procurement workflows, streamlining purchase requisitions, approvals, and order processing. This not only saves time but also ensures compliance with procurement policies and local regulations.    

Most importantly, construction ERP 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 platform.    

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

Read more about Access Coins Construction Supply Chain Management >

For almost every organization, the implementation of an ERP system is a substantial investment both in terms of cost and labor.  That’s why it’s so important to approach it with careful consideration. Because of the tasking nature of implementation, most companies should endeavor to reach a certain level of scale before contemplating the adoption of a comprehensive ERP system.     

For most, this usually involves having the necessary IT infrastructure and staff in place to adopt and maintain the system post-implementation, alongside being able to support the upfront costs.  

Read our guide on how to implement a construction ERP system >

The costs of construction ERP include the initial set-up, training and ongoing hosting, which can quickly results in a total capital investment that some smaller businesses may not be ready for.  

In the end, 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, who already have the resources to support and maintain the system. These companies should also be 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.   

Read our guide to the cost of construction ERP >

Access Coins is an easy-to use, fully integrated, modern solution that brings your organization’s data and tools into a complete and powerful single platform. With Access Coins construction businesses can: 

• Take control of their construction projects   
• Connect  back-office and field teams with cloud-based software and achieve next level of collaboration   
• Boost profitability with accurate real-time financials and forecasting dashboards   

Talk to our construction software specialists today about how Access Coins can transform your construction business.