Implementing ERP system for construction companies: What, How & Why.

By Admin

ERP systems have become an integral part of IT infrastructure across many industries. On the other hand, the construction sector needs to catch up in terms of technological advancements as compared to other similar industries like Manufacturing

Construction businesses now recognise the need for technological adoption for improved efficiencies and business outcomes. However, a rushed decision to digitally transform a construction business can also cause havoc to the existing processes. In this article, we have tried to float the basics of implementing an ERP system for construction companies so that you make a very informed decision to transform your construction business digitally.

What is an ERP system for construction?

In general, an ERP system is a software platform combining different modules, each module solving a specific business problem. The details of an ERP system vary highly depending on the nature, size & needs of the business entity.

ERP systems for construction companies can be a package of different modules functioning together to manage and optimise all the business operations like procurement, site management, financial planning, health and safety management, payroll management, and more.

A well-designed custom ERP system always helps improve business productivity and equips managers with practical managerial technology tools for better planning and management. Implementation of custom ERP software demands a considerable investment of money and time. Thus every ERP system for any business should be composed and implemented meticulously to prevent failure. Let’s briefly examine the ERP implementation process and its phases.

How is an ERP implemented for construction businesses?

You must have understood by now that implementing an ERP system is neither easy nor straightforward. The foremost thing to ensure is an excellent custom software development partner onboard with you if you plan to implement an ERP system for your business. Look for a software development partner with a proven track record of successfully designing and implementing custom software for construction businesses.

Standardised software development comprises six implementation phases, and so does the ERP implementation. Each of these phases has its own set of goals. Depending on the software development partner, these phases might change. Still, you must ensure that all the milestones and criteria are covered in their process.

The following are the six phases of ERP implementation:

  1. I. Discovery & Planning

    II. Design

    III. Development

    IV. Testing

    V. Deployment

    VI. Support & Updates

Depending on the development methodology you choose, certain phases might iterate internally. For example, if design faults are found after testing, the complete cycle has to move back to the design phase.

Now that we have understood what the ERP system is and how the implementation of an ERP system is done let us quickly run you through why you should implement an ERP system for your construction business now!

Why should you implement an ERP system for your construction business?

  1. • Improved productivity

    ERP systems bring all business management under one umbrella. Cloud-based ERP systems enable managers to supervise all the business information in real-time from anywhere. Better management leads to better optimisation, which eventually improves business productivity.

  2. • Better collaboration and information exchange

    Another significant advantage of implementing an ERP system is better collaboration between different organisational units. As mentioned earlier, an ERP system is a comprehensive software packing other modules together. Thus organisation-wide data and information can be readily available to anyone with needed authorisation, improving cross-functional collaboration.

  3. • Stop using off-the-shelf software

    Off-the-shelf software is a great quick fix, but it cannot be seen as a permanent fixture as they need to be more flexible and scalable. Running an organisation dependent on off-the-shelf software means letting a 3rd party dictate the nature and modes of operation in your business. An ERP system is specifically designed for your business, allowing you to operate in a manner that suits you the best.

    These are the significant advantages you can get after a successful ERP implementation for your construction business. If you want to know more about how we can help you implement custom ERP software for your construction business, then feel free to contact us anytime.


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