How to Choose Construction ERP Software 

How to Choose Construction ERP Software 

The first thing to establish is that no single ERP software can handle all the different needs of a construction business. When choosing construction ERP software, the first thing is to understand where your organization fits in the field of construction.

For instance, if you are a developer, you will need to hire contractors to carry out almost all the construction projects. That means you have to control costs on all levels to enable you to make a profit. If you are a general contractor, you will probably carry out the main construction project with your staff and only hire subcontractors to complete some elements of the work.

With an understanding of where your business fits and the specifics of what you need to control, it becomes easier to choose the best ERP software that will work for you.

How Construction ERP Software Helps Businesses in the Field of Construction

Construction ERP software comes with numerous features. When choosing a product, you should consider how it can help your business. Ideally, a good construction ERP software tool should help your business facilitate different aspects of your operations, such as project planning and management.

It should also help to facility time management of projects and tasks completion; forecasting resources, risk forecasting, team targets, and thorough project and financial analyses.

Tips to Choose Construction ERP Software 

There are dozens of construction ERP software options in the market, which make it difficult to choose. The best way to make a choice is to choose based on the features that your business needs. Look at the core features of the construction ERP vis-à-vis your business needs.

If the software offers what you need, consider the budget and if it matches your budget, you can go ahead to buy it. Here are some standard features of construction ERP tools that you should consider when making a choice.

Financial Analysis and Budgeting: This feature helps you to calculate the exact cost of raw materials and labor hours of everyone working on your project. It also covers other contingency costs that may crop up during the project.

Construction Payroll: This should cover the cost of labor of architects and designers as well as the labor costs of personnel that perform community-related roles and quality control. Taxes and estimations versus final costs, and productivity reports will help an organization to determine their profit and loss. Your choice of construction ERP software should have a payroll module to accommodate construction-specific payroll.

Mobility: This makes it possible for your team to access information in the ERP while working onsite. Undoubtedly, communication is a critical part of any project management, especially for large construction sites where it is difficult to assemble all team members in a single place.

Equipment Management: Each project needs an established cost from the onset. This cost would include the designated equipment used for the project. To ensure a seamless flow of a project, it is crucial to keep track of the use of equipment on a project. This will help to forecast the specific time that it would require repair or maintenance.

Cost of Construction ERP

Construction ERP software

Many factors determine the actual cost of construction ERP software. Two major factors are the size of your business and your needs. Choosing and implementing ERP software can vary between $150,000 and $700,000 for mid-sized organizations.

The cost can go higher if you require more advanced features. Suffice to mention that you can find some ERP software options for free download online. Although these free tools can carry out some functions for medium and large enterprises, they may not be the best choice for your business.


Choosing the best construction ERP software depends on your needs and business size. It is a good idea to first perform an extensive analysis of your needs before choosing an ERP. You may also want to consider your future needs and goals when making a choice.