The 8 Essential Features for Choosing the Right ERP for Construction

Last update:

October 25, 2024

5 minutes

We have selected 8 features that we believe are essential in a good ERP for the construction sector. We have ranked them from most important to optional:

Must-Haves

Project Management

This is THE essential feature for a construction ERP. Project management requires advanced logistics, regardless of your company’s size. You need a solution that integrates this need to simplify your tasks:

  • Tracking material usage
  • Real-time management of team schedules
  • Quick resource management according to needs and unexpected events
  • Coordination between teams on-site, subcontractors, and suppliers

Goal: Reduce waste, delays, and additional costs due to poor planning or communication errors.

In short, this feature ensures optimal and responsive management of your sites.

Supplier Purchase and Billing Management

Managing purchases and supplier invoicing helps improve relationships with suppliers by ensuring:

  • Clear management of payments, invoices, and deadlines
  • Reduction of errors or payment delays

This feature is major as it effectively controls costs, optimizes supplies, and ensures project fluidity!

Client and Invoice Management

By centralizing client information (quotes, contracts, communications), the ERP allows for:

  • Efficient management of business relationships
  • Anticipation of clients' specific needs
  • Tracking project evolution according to contracts

Invoice management helps:

  • Avoid errors and payment delays
  • Ensure better cash flow
  • Reduce financial risks

This feature is essential as it guarantees rigorous tracking of projects, from initial negotiation to final billing.

Smart Additions

Purchase Catalog Proposal

A purchase catalog in a construction ERP consists of:

  • Classified databases of products
  • A directory of suppliers containing various contracts for comparing supplier offers
  • Tools for managing purchase requests and purchase orders

By standardizing available products and services, it allows project managers to quickly select what they need while comparing prices and delivery times.

This optimizes purchases and reduces potential errors!

Tender Management

Tender management in a construction ERP is crucial for streamlining the acquisition process for new projects.

This feature allows you to:

  • Track tenders with automatic notifications
  • Compare different offers
  • Provide integrated costing and develop detailed quotes
  • Plan the project
  • Monitor budget evolution and manage subcontractors
  • Manage numerous documents: templates, archiving, digital signatures

A good ERP is crucial for enhancing competitiveness.

HR Management from Scheduling to Payroll

HR management via ERP can provide:

  • Management of recruitment and employment contracts (permanent, temporary, etc.)
  • Planning of HR resources with employee tracking
  • Employee management: attendance tracking, absence monitoring, payroll (worked hours, site bonuses, overtime)
  • Management of training and certifications (safety, CACES permits, electrical authorizations, etc.)
  • Monitoring of PPE and safety standards
  • Electronic document management and creation

Automating this HR function is not straightforward, especially payroll management. However, it improves productivity, reduces errors, and ensures employee satisfaction while staying within allocated budgets.

Good Integration with Other ERP Tool

Effective integration with other ERP tools is crucial in construction because it allows different systems (financial management, HR, purchasing, etc.) to communicate effectively.

This centralizes all important data in a single environment, reducing duplication of information and errors.

Your ERP doesn’t have to be optimal in all areas! It can simply complement the software you currently use in the areas where it is most relevant.

Monitoring Standards and Compliance

Monitoring standards and compliance in a construction ERP is essential to ensure that projects adhere to current regulations (safety, environment, construction).

By centralizing information related to standards, certifications, and permits, the ERP ensures that every stage of the site complies with legal requirements.

These are the 8 key features we have selected. You can now consult our selection of specialized construction ERPs and choose the one that best meets your needs!

Try Koncile today

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