Construction Software Comparisons

Businesses looking to make the switch from a generic accounting package to a system that is dedicated and designed specifically for construction companies have a lot to consider. This is no easy task, and companies need to consider the required time and expenses carefully. However, the benefits of being able to proactively manage projects, costs, and deadlines with the help of industry-specific software are often worth it. If you read construction software comparisons, many will point out the merits and pitfalls of various systems to help make your decision a bit easier.

Before jumping in and dedicating yourself to full-on construction software, consider the following questions to determine if you're making the right decision:

First, are you able to commit the necessary time and money to ensure that all staff are properly trained to use the new software and that the software is properly implemented?

Second, switching to dedicated construction software, and being able to maximize its use, usually requires a good amount of up-front time spent inputting all job data and information in to the system as well as changing how and what kind of data you collect on jobs. Does your company have the time and resources to do so?

You should also ask yourself why you're considering construction specific software. Do you simply just think you need it because you're a construction company? Have you had bad experiences in the past that resulted from your current software's inability to track costs? Do you need a system that recognizes costs at the time of commitment versus when you either receive or pay the bills? If so, construction software is probably a good investment.

Also think about how you handle your progress billings. Are they created separate from your accounting system? How do you monitor whether or not all incurred costs are billed? What about your schedule of values - how is that maintained?

Does your current software allow you to have a subcontract system that can track job costs at the time of commitment? Most generic accounting packages do not have functionality nearly that advanced, but you'll find it in construction software. Further, how do you monitor your committed and estimated costs? Does your current system have controls that can automate that or will you benefit from construction software that does?

What about your estimating software? Are you using spreadsheets or have you developed specialized programs? Are you currently able to track estimates and revisions against the job ledger as easily as you could with dedicated industry software?

Will your company benefit from having a place to store all of your job files and documents that is easily accessible? Or do you have a current system that handles this issue adequately?

What about your company's growth? If your company is growing, you likely realize that your small business software will eventually reach its limit and will become a burden at some point...and you'll want to switch to a dedicated construction project management system before this critical mass is reached. As you grow, the improved efficiency that you gain from construction software will be a huge advantage. The better you can handle your projects, the more projects you can take on, and the faster you can grow.

Finally, you obviously need to be aware of how much you can afford. Some people suggest a budget of 2-3% of annual net revenues, but if you are struggling due to a lack of real-time data, you may be able to afford more with the idea that you'll gain much more than most companies.

If you've decided that dedicated construction software is right for your company, finding the optimal solution is a whole different project. Surfing the web, you'll likely find more products than you can sift through that seem like viable solutions. It is not uncommon for people to become more confused than when they began once they start learning about the ins and outs of various packages. This is why looking at construction software comparisons can be extremely beneficial.

You also need a responsible and informed individual leading the search. Don't select the person in your company with the most free time or whoever will be the cheapest to pay to do this important task. Further, most accountants lack the construction project management knowledge to know what is important.

Therefore, look for a person to lead the charge that understands the operations of the company as well as the accounting side of the business. They also need to have strong communication skills to talk with vendors and need to have full support of management. Often, finding this person is one of the hardest parts of finding the right software.