ERP for construction

ERP for construction

No two construction projects are the same. Every project has its own schedule, budget, materials and stakeholders. As the number of projects grows, it becomes increasingly difficult to maintain an overview, leading to budget overruns and delays.

An ERP system gives construction companies the control they need. It brings all processes together within a single centralised system. From the office to the building site: this ensures everyone is working with the same up-to-date data.

On this page, you can read about what ERP actually means for construction companies, which features are important, and how to choose a system that suits your organisation.

These ERP suppliers specialise in construction:

Simplicate Software B.V.Wolters Kluwer Belgium NVSoftwareshakerDiginavAiden Netherlands BVOracle netsuiteECI Software Solutions BVSidekick online project softwareOracleOffimac NVBouwmakers BVAfasScherpthe BVOrganiBuild-SoftwareGMI Group NVdigifiersExactSAPInforBluace B.V.Huss B.V.TogetrInmoteProdware Nederland B.V.DTNEXT B.V.Eqeep Benelux B.V.Nessi NVDelaware Consulting B.V.BouwflowMicrosoft Dynamics 365ETS InformaticsSageIsah Business SoftwareCegekaSocialERP B.V.Smart Value B.V.4D Vision NVDigiMedioOdooAardugAntaras ERP Solutions

Why construction companies choose ERP

Construction companies operate almost entirely on a project basis. To manage a project smoothly from start to finish, it is essential that planning, materials and people are continuously coordinated..

Projects that go over budget, final cost calculations that arrive too late, materials that aren’t delivered on time or hours that aren’t recorded correctly: for construction companies, this is an everyday reality..

ERP software for construction companies tackles these challenges systematically. It brings all departments of the company together in a single system: project administration, procurement, planning, time recording and finance all operate from the same database..

Disparate Excel spreadsheets and separate systems are no longer sufficient. The modern construction company uses an ERP system that is also available on-site, where everyone works with the same, up-to-date data..

Twee medewerkers in een fabriek

The 7 most important ERP modules for construction companies

Over the years, ERP suppliers have specialised in specific sectors, including construction. As a result, ERP systems for the construction industry feature modules that take into account project-based working, subcontractors, material flows, safety regulations and documentation. The most important modules are:

Project management

Tracking budgets, planning and progress for each project

Costing and quotations

Preliminary costing, final costing and cost price calculation for each project

Stock, procurement and materials management

Managing materials, tools, purchase orders, deliveries and materials consumption by project or site.

Time tracking

Linking employees’ and subcontractors’ hours to projects.

Financial module

Invoicing per project, payments, instalment statements and insight into margins.

Quality, safety and certification

Centrally recording certificates, inspection reports, safety documents, handover points and project documentation.

Business Intelligence (BI)

Create reports and analyses for real-time insight into performance, costs and variances per project.

When choosing an ERP system, also consider scalability: if you receive more contracts or take on new staff, the system must be able to scale accordingly.

The key benefits of ERP for the construction industry

An ERP system gives construction companies control over project planning, the materials used and the hours worked by staff and subcontractors. Specifically, these are the key benefits:

  • Fewer projects going over budget, as costs and progress are continuously monitored
  • Better cost analysis, enabling you to draw up future quotations more accurately
  • Greater control over hours worked on site
  • More efficient procurement through better insight into material requirements per project
  • Less administration as projects and finances are automatically linked
  • Greater control over cash flow through insight into invoices and outstanding payments

The risks of choosing software too hastily

Implementing ERP software is a major investment. If you choose too hastily, you’ll be stuck for years with software that doesn’t fit your work processes: a difficult implementation that runs over time, staff who avoid the new system, and customisations that quickly double the initial price.

For construction firms, every project is unique, and the software must adapt accordingly. A system lacking robust project management, mobile access or integration with cost estimation tools simply fails to reflect the reality on the construction site.

These are the most common mistakes made during the ERP selection process:

  • Failing to compare enough ERP suppliers
  • Choosing on the basis of an impressive demo, a well-known name or time pressure
  • Opting for generic software without construction-specific configuration
  • Underestimating the complexity of integrating with existing cost estimation and drafting software
  • Underestimating the total cost of the project (implementation, training, licences and maintenance)
  • Involving staff too late or not enough in the decision-making process

A good, well-considered choice therefore starts with an honest analysis of what your organisation needs – not just now, but also in three to five years’ time.

Comparing construction software

Countless suppliers and ERP systems, each with their own strengths: how do you choose the ERP package that best suits your business? Need help with this search? With our selection tool, we map out your software requirements based on a series of questions. This enables us to make a targeted selection of the most suitable suppliers.

Twee fabrieksarbeiders achter een laptop

Frequently asked questions

Here you’ll find the most frequently asked questions about ERP Guide and how we work

How long does an ERP implementation take in the construction sector?
A straightforward implementation can easily take three to six months, whilst more complex projects can take over a year.
When does a construction company need ERP?
As soon as you lose track of project costs, scheduling or materials, or when managing multiple projects simultaneously becomes difficult, it’s time to make the move to ERP.
Can an ERP system help prevent budget overruns?
Yes. Because costs, hours and materials are tracked in real time for each project, you can spot deviations early enough to take corrective action.
How much does an ERP system for construction companies cost?

The costs depend on the size of your business, the number of users and the features you require. In addition to licence fees, implementation and maintenance costs also play a part.

Due to the need for project administration, the tracking of hours and materials, and often multiple sites, construction ERP systems are generally slightly more expensive than the market average. The total investment over the first three years varies significantly depending on company size and required functionality; our selection tool will provide you with an estimate tailored to your specific situation.

Can’t find your question here? Please feel free to contact us.

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Find the most suitable software suppliers

Compare ERP software

Choose your sector

Why this matters in your ERP selection: When making your selection, it is important to take your sector into account. A system must perfectly align with your business processes. These processes differ per industry. For example, a wholesale company operates differently from a construction company and therefore requires different functionalities.
Marc
Mark Sanders
Software Expert

What type of manufacturing are you specialised in?

Why this matters in your ERP selection:

When selecting an ERP, it is important to take different types of manufacturing into account. Each sector has its own specific requirements for an ERP. For example, if you work with perishable goods, the ERP must be able to handle FIFO and best-before date data. Are you in fashion? Then colour/size matrices are important, etc.

Marc
Mark Sanders
Software Expert

How are your production orders planned?

Why this matters in your ERP selection:

In stock-driven production processes, items are manufactured based on sales forecasts. You want to keep inventory as low as possible without running into delivery problems. You then need ERP software that monitors stock levels and helps with reliable forecasting. Is your production customer-order-driven? Then orders must be taken into production quickly. The ERP must also take any customer specifications into account.

Marc
Mark Sanders
Software Expert

What does your production process look like?

Why this matters in your ERP selection:

In discrete manufacturing, you need an ERP with strong capabilities for building bills of materials. If you only do assembly, you are in luck: this typically requires less complexity from ERP systems. For (semi) process industries, these systems are not suitable. Here, the software must be able to handle formulas and recipes (ratios, mixing, etc.). Finally, project-based production is a completely different discipline and requires strong project management functionalities.

Marc
Mark Sanders
Software Expert

What production volumes do you work with?

Why this matters in your ERP selection:

In unit production, items are produced one by one (weighing, artisan products, etc.). In this case, ERP software must be able to accommodate many customer specifications. When products are made in multiple quantities at once, we refer to batch or series production. Due to the larger runs, inventory management functionalities are important. In continuous production, the production process is kept running as much as possible. As a result, ERP software must excel at calculating optimal capacity utilisation.

Marc
Mark Sanders
Software Expert

What type of trade are you specialised in?

Why this matters in your ERP selection: When selecting an ERP, it is important to consider what type of trading company you are. Each sector has its own specific requirements for an ERP. For example, if you work with perishable goods, the ERP must be able to handle FIFO and best-before date data. Are you in fashion? Then colour/size matrices are important, etc.
Marc
Mark Sanders
Software Expert

Do you have a webshop that needs to be integrated?

How many physical stores with point-of-sale do you have?

Do you also import goods?

Do you also export goods?

What type of customers do you supply to?

Why this matters in your ERP selection:

Even among ERP systems for trading companies, there are major differences. How you answer the above questions determines which solutions are more or less suitable. If you import or export goods, you may for example need to deal with customs formalities. Do you supply to consumers? Then different legal regulations apply that you need to take into account.

Marc
Mark Sanders
Software Expert

What type of retailer are you?

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider what types of products you sell. Each sector has its own specific requirements for an ERP. For example, if you work with perishable goods, the ERP must be able to handle FIFO and best-before date data. Are you in fashion? Then colour/size matrices are important, etc.

Marc
Mark Sanders
Software Expert

How many physical points of sale do you have?

What type of customers do you supply to?

Do you also import goods?

Do you also export goods?

Why this matters in your ERP selection:

Even among ERP systems for retailers, there are major differences. How you answer the questions determines which solutions are more or less suitable. If you import or export goods, you may for example need to deal with customs formalities. Do you supply to consumers? Then different legal regulations apply that you need to take into account.

Marc
Mark Sanders
Software Expert

What type of service provider are you?

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider what services you provide. Each sector has its own specific requirements for an ERP. For example, if you organise events, the correspondence with suppliers and staff scheduling must be well organised. Do you provide consultancy and invoice by the hour? In that case, a good time tracking system is essential.

Marc
Mark Sanders
Software Expert

Is time tracking important to you?

Do you work with hourly rates and/or fixed rates?

Is HRM an important part of your business?

Does your organisation work on a project basis?

What is the average lead time of your projects?

Do you mostly supply to businesses or consumers?

Why this matters in your ERP selection:

Even when it is clear what type of services you provide, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

What type of logistics services do you offer?

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider what type of logistics services you provide. Each sector has its own specific requirements for an ERP. Do you specialise in sea freight? Then a connection with Portbase may be important. Do you specialise in road transport? Then trip planning and route planning are important.

Marc
Mark Sanders
Software Expert

Do you organise loads in the following way?

Groupage / Part loads (LTL)
Groupage/part loads consolidated at a hub for multiple clients
FTL
Full loads for multiple clients
Dedicated Logistics
Transport for a single client
Why this matters in your ERP selection:

You will be using an ERP system, among other things, to track goods to be transported. Naturally, the ERP system must properly understand how you work and for whom you are transporting. Therefore, indicate how you organise your loads so this can be taken into account in the ERP selection.

Marc
Mark Sanders
Software Expert

Do you have your own fleet?

Do goods need to be transported under refrigeration?

Do you import goods?

Do you also export goods?

Why this matters in your ERP selection:

These questions are important for making a more refined selection. When importing or exporting, you will need to deal with customs formalities. The ERP system must be able to support you by providing the right data and documents. Do you have a fleet? Then it needs to be maintained and depreciated correctly. Do goods need to be transported under refrigeration? Then you need functionality for temperature monitoring and control.

Marc
Mark Sanders
Software Expert

Government and NGOs

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider what type of government services you provide. Each sector has its own specific requirements for an ERP. Let us know what activities you carry out, and we will find vendors with the right references and experience in that specific area.

Marc
Mark Sanders
Software Expert

Do you work on a project basis?

Do you want a membership administration?

Does the ERP system need to be connected to other softwares?

Name of the software integration(s):

Does the ERP system need to be available on mobile?

Why this matters in your ERP selection:

Even now that it is clear what type of government role you fulfil, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

What type of healthcare are you specialised in?

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider what type of care you provide. The processes in a hospital differ greatly from an organisation involved in nursing or social services. Therefore, each branch of healthcare has its own specific requirements for an ERP.

Marc
Mark Sanders
Software Expert

Do you want to use the ERP system for client registration as well?

Does your organisation offer overnight stays?

Does the ERP system need to be connected to other softwares?

Name of the software integration(s):

Do you provide care on location?

Why this matters in your ERP selection:

Even now that it is clear what type of care you provide, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

What type of construction are you specialised in?

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider the construction activities you specialise in. Each sector has its own specific requirements for an ERP. Property developers need very complex functionalities for risk management and (financially) monitoring the budget and progress. Civil engineering companies are characterised by the frequent need for a maintenance and certification module for the deployment of heavy equipment.

Marc
Mark Sanders
Software Expert

Does your organisation work on a project basis?

What is the average lead time of your projects?

Do you often work with many different parties?

Does your organisation manage real estate?

Why this matters in your ERP selection:

Even now that it is clear what type of construction company you are, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

Do you carry out a lot of maintenance work?

Do you also want to be able to schedule assets?

Do you want time tracking for your employees?

Why this matters in your ERP selection:

Even now that it is clear what type of construction company you are, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

What type of education do you provide?

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider the type of education you specialise in. Each sector has its own specific requirements for an ERP. Corporate training is more commercial than other forms of education, which may make CRM functions more important. In regular education, the ERP must handle the tracking of students (student tracking system).

Marc
Mark Sanders
Software Expert

Do your customers have a membership with you?

Do you also want to use the system for student registration?

Do you also want to use the system for HRM?

Why this matters in your ERP selection:

Even now that it is clear what type of education you provide, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

Do you also teach remotely?

Do you work with timetables and location planning?

Does the ERP system need to be connected to other softwares?

Name of the software integration(s):

Why this matters in your ERP selection:

Even now that it is clear what type of education you provide, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

Are you an installation company or a service company?

Why this matters in your ERP selection:

These questions are important for making a more refined selection. There are many different ERP systems that specifically target the installation and service industry. By answering the above questions, it can be determined which vendors are more or less suitable.

Marc
Mark Sanders
Software Expert

Do you want the ERP system to be ready for IoT (Internet of Things)?

Do you want an integration with key suppliers?

Do you also carry out maintenance work?

Do work orders need to be entered on mobile devices?

Why this matters in your ERP selection:

These questions are important for making a more refined selection. There are many different ERP systems that specifically target the installation and service industry. By answering the above questions, it can be determined which vendors are more or less suitable.

Marc
Mark Sanders
Software Expert

Does the system need to be accessible offline?

Do you need to be able to monitor machines remotely?

Do you also work on a project basis?

Do you need to register refrigerants?

Why this matters in your ERP selection:

These questions are important for making a more refined selection. There are many different ERP systems that specifically target the installation and service industry. By answering the above questions, it can be determined which vendors are more or less suitable.

Marc
Mark Sanders
Software Expert

Do you carry out maintenance regularly?

Do you work with Service Level Agreements?

Does the ERP system need to be connected to other softwares?

Name of the software integration(s):

Do you work on a project basis?

Do you want to record hours in the system?

Why this matters in your ERP selection:

There are many ERP systems that specifically target the rental sector. Answer the above questions to determine which vendors are more or less suitable. If you regularly maintain your assets, it is important to choose an ERP system with maintenance planning functionalities. Do you work on a project basis? Then project administration functions give you insight into the revenues, costs and margins of one or more projects.

Marc
Mark Sanders
Software Expert

Can you provide a brief description of your business activities?

Why this matters in your ERP selection:

To keep the selection tool manageable, we have chosen which sectors are listed by default. There is a chance your sector was not included in the overview. You can still use the selection tool. Provide a precise description of your business activities. The more you share, the more accurate the selection will be.

Marc
Mark Sanders
Software Expert

Does the ERP system need to be available on mobile?

Does the ERP system need to be available offline?

Is time tracking important to you?

Do you work with hourly rates and/or fixed rates?

Why this matters in your ERP selection:

Since you did not select a standard sector earlier in the selection tool, we cannot ask industry-specific questions. However, by answering these questions you can still make your ERP search more specific. The questions are independent of your sector and help determine which ERP software suits you best. The more information you provide, the more accurate the selection will be.

Marc
Mark Sanders
Software Expert

Is HRM an important part of your business?

Does your organisation work on a project basis?

What is the average lead time of your projects?

Do you mostly supply to businesses or consumers?

Does the ERP system need to be connected to other softwares?

Name of the software integration(s):

Why this matters in your ERP selection:

Since you did not select a standard sector earlier in the selection tool, we cannot ask industry-specific questions. However, by answering these questions you can still make your ERP search more specific. The questions are independent of your sector and help determine which ERP software suits you best. The more information you provide, the more accurate the selection will be.

Marc
Mark Sanders
Software Expert

Does your organisation have multiple locations?

How many warehouses do you have?

Do you work with multi-currency?

Do you operate internationally?

Is the head office located in the United Kingdom?

Do you have any specific requirements we should take into account? (Optional)

Why this matters in your ERP selection:

Although these questions are not about activities within the company, the answers are of great importance. Most vendors use this information to determine whether they can meet the requirements of your implementation. For example, some vendors cannot handle international implementations or work exclusively with a single currency.

Marc
Mark Sanders
Software Expert

Enter the number of employees

Why this matters in your ERP selection: When making your selection, it is important to know how many employees there are and how many people will be using the software. As a general rule: the larger the organisation, the more complex the implementation. This is not only because all users need to be trained, but also because decision-making often differs compared to smaller companies. With larger businesses, the vendor must be better able to handle longer communication lines and implementation timelines.
Marc
Mark Sanders
Software Expert

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