ERP in the construction industry:
services, integrations & deployment tips

ERP in the construction industry: services, integrations & deployment tips

August 22, 2023

Konstantin Pilkevich
by Konstantin Pilkevich, Head of Itransition's ERP Center of Excellence

ERP in construction is a specialized ERP platform that enables construction companies to manage core business processes, from raw materials budgeting and subcontracts onboarding to project execution and payroll. With 10+ years in ERP services, Itransition delivers scalable and cost-effective solutions to help its clients orchestrate key workflows and minimize operational risks.

About Itransition

50+ completed projects of different scales across various industries

Hands-on expertise in delivering out-of-the-box, custom, and hybrid ERP solutions

An Odoo Silver Partner

A NetSuite Solution Provider

Client spotlight

Acumatica construction edition development

400%

growth in the platform use

Itransition helped Acumatica customize its cloud-based ERP system to adapt it to the needs of the construction industry by streamlining document management, automating construction project management, and more.

ERP for repair and maintenance business

2x

faster work order management

Itransition deployed an Odoo-based ERP solution to help the customer reduce the time for the purchase order approval, automate the management of various enterprise processes, and accelerate work order management.

Key construction ERP features

Enterprise resource planning systems are modular solutions, so your company's needs, requirements, and goals define the choice of features. Here, we’ve outlined some capabilities commonly implemented by construction firms:

Contractor & subcontractor management

Automating general contractor and subcontractor management processes from onboarding to invoicing, to focus on project execution, profitability, and growth.
  • Contractor and subcontractor data storage (insurance data, health and safety data, training and skills data)
  • Contractor and subcontractor registration
  • Quotation management
  • Work orders creation and issuing
  • Work progress tracking
  • Tracking of billable tasks with completion status
  • Tracking of scheduled and change work order statuses from request to approval
  • Running account bill generation
  • Performance monitoring
  • Bill and payment tracking
  • Analytics and reporting (contractor/subcontractor performance, rate analysis, snag list report, job costing, etc.)

Are you looking for a reliable tech partner for your construction ERP project?

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Essential integrations for construction ERP systems

ERP solutions should be well-integrated with the company's IT environment. To ensure uninterrupted data flow across all departments and business processes, we recommend integrating construction ERP platforms with the following systems:

Key integrations
CRM
BI software
Building information modeling tools
Project management software
Communication tools

CRM

Integration with customer relationship management software enables sales teams to access relevant data on the cost of work, project progress, and received payments quickly to manage sales relationships and customer service better. ERP-CRM integration also makes customer and prospect data (quotes, plans, agreements, invoices) available company-wide.

BI software

When integrated with business intelligence software, ERP facilitates advanced analytics capabilities for all authorized parties across the enterprise, automatic generation of custom reports and dashboards, planning what-if scenarios, and running predictive analytics and modeling.

Building information modeling tools

Safe and quick transfer of buildings’ virtual models from BIM to the ERP database aids in accurate construction project planning and costing. Meanwhile, reporting on construction issues helps prevent similar challenges in future projects.

Project management software

This integration helps oversee projects in progress, employees and teams involved, ongoing and scheduled works, and project timeframes for improved work scheduling, and task prioritization.

Communication tools

This integration leads to enhanced collaboration between different departments and employees, as well as a quick exchange of information between a company and its partners and customers.

Best construction ERP software on the market

Netsuite is an integrated cloud-based ERP service for automating core business processes across industries, including construction.
Key features
  • Finance management and accounting
  • Service and marketing automation
  • Human resource management
  • Billing
  • Asset management
  • CRM
  • Sales order management
  • Opportunity management
  • Planning and budgeting
  • Revenue recognition
  • Financial analytics and reporting
Limitations
  • Price hikes in the long run

Construction ERP project lifecycle

1

Business analysis

Identification and analysis of key processes, workflows, and technology environment

Definition of industry regulations and compliance requirements

Elicitation of business goals, end-user needs, and expectations

Definition of software requirements for the future ERP system

2

Design & technology selection

Conceptualization of the ERP solution

ERP solution architecture design

ERP integration scope definition

Optimal technology stack selection

3

Planning

Definition of the project scope and deliverables

ERP projects scheduling and budgeting

Data migration strategy development

User onboarding planning

Risk management strategy development

4

Customization/Development

Customization of the off-the-shelf ERP or development of a custom ERP solution

Platform integration using custom code, pre-built connectors, or APIs

5

Testing

ERP functional and security testing

Usability testing of the ERP solution with focus groups

ERP performance and compatibility testing

Bugs and issues resolution

6

Deployment & handover

ERP solution deployment to production

Data migration from corporate systems and apps to ERP

User acceptance testing

User training and onboarding

7

Post-launch support (L1-L3)

Platform users and infrastructure support

ERP system fine-tuning in line with customer concerns or suggestions

ERP system troubleshooting

Technology upgrades

Сonstruction ERP benefits

Construction data consolidation
Automatic centralization of all data across business processes in an integrated secure database to enable real-time data transfer between departments and seamless access to the required records within seconds.
Accelerated project planning & management
End-to-end project visibility helps managers and executives plan effectively, define realistic project schedules, allocate resources, as well as manage projects across several locations without delays and cost overruns.
Risk management
Continuous project monitoring with real-time alerts and automatic tracking of compliance with state, national and international regulations to help identify and mitigate construction projects risks as soon as they emerge.
Accurate cost & revenue estimation
Generating accurate project estimates and quotes for successful bidding and accurate planning and management of the budget for raw materials, equipment, labor, etc.
Improved decision-making
Interactive dashboards, regular and on-demand reporting capabilities to help gain end-to-end visibility and real-time insights into business workflows get to support each decision with data.
Cross-department collaboration
Construction ERP simplifies the tedious and confusing information exchange process. It helps seamlessly connect your site and back office teams regardless of time and location for real-time collaboration, knowledge sharing, etc.

ERP for construction: considerations before the adoption

Deployment model

When choosing an ERP solution for construction, one of the most critical decisions is cloud or on-premises hosting. This decision influences the pricing model, solution scalability, hardware investments, deployment speed, and more.

  • An on-premise construction ERP system is run on the company’s proprietary infrastructure, which means the organization faces high upfront investments in hardware, facilities, and an in-house IT team to manage solution’s customization, maintenance, security, upgrades, etc.
  • Cloud-based ERP software can be deployed and scaled faster and easier, as the company doesn’t need to provide the IT infrastructure and in-house expertise. Many companies consider the subscription-based model an undeniable advantage; however, in the long run, the subscription fee and ongoing support and maintenance fees can get too high compared to on-premises ERP.
  • A hybrid construction ERP solution, which combines on-premise and cloud ERP modules, is an alternative for companies looking to maintain the inherent scalability and flexibility of cloud solutions without losing the security of ERP modules running in-house. However, integrating and maintaining hybrid ERP requires advanced expertise and considerable investments.

Implement construction ERP with Itransition

Itransition delivers scalable and cost-effective construction ERP solutions as well as optimizes the existing ERP software to better digitalize and orchestrate core processes.

Implement construction ERP with Itransition

Itransition’s ERP consultants provide advisory support along the construction ERP implementation and optimization, helping you mitigate project risks and ensure high ROI by taking on:

  • Analysis of business needs and technology environment
  • ERP solution architecture design
  • ERP software selection
  • ERP strategy creation and roadmapping
  • ERP implementation support

We provide end-to-end construction ERP implementation services that include all or some of the following activities:

Entrust your ERP project to Itransition

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ERP implementation challenges we help solve

Resistance to change

We can conduct user training and help you work out a change management strategy to ensure minimal resistance from the user community and a seamless user experience.

Budget overruns

We don’t start ERP development until the project scope and interrelated costs are agreed upon. To help you find the most cost-efficient solution and be aware of the possible costing affecting your budget, we weigh on different deployment options and shortlist ERP vendors with a comprehensive overview of their products' cost structure.

Vendor selection

Our ERP consultants constantly monitor existing and emerging ERP platforms to determine the flexible solution with extensive functionality and customization capabilities to meet all your specific needs.

Data management

Since ERP implementation implies data migration from other corporate systems to a central ERP database, we can take this opportunity to sort out irrelevant or redundant data and correct and add missing information to ensure good data hygiene and data reliability.

Data safety

When delivering construction ERP solutions, we introduce comprehensive data security practices such as multifactor authentication, behavior monitoring, data encryption, and more to protect your corporate information.