Why cloud-based ERPs are building the future for construction companies

Tim Ryley
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A guide on how to use job management software to keep construction projects on the right track

In a recent report on the New Zealand construction industry, two of the key causes of disputes were reported as poor-quality documentation and delays in work or extensions of time on project.

Construction projects can be complex, especially if a business lacks the internal resources to plan them efficiently. When they involve a wide range of tasks and stakeholders, that complexity increases.

Recent research by McKinsey found that delays are a major challenge for the construction industry. Large building projects take normally 20% more time than expected, while budget overruns appear in 80% of the cases.

Not only that, but the construction industry often struggles with project rework (7-15%) and efficiency rates (30%). Taking into account the fact that construction is one of the most important industries for the economies of Australia and New Zealand, it's clear that delivering construction projects on time and budget is crucial.

The advent of the Covid-19 era has seen many people in both countries out of work. So it's clear that the success of the construction sector will be critical for economic recovery and employment numbers.

What it comes down to is that the construction industry needs to be supported, and that means harnessing the kind of technology that can help them meet their biggest challenges.

Clearing the two biggest construction industry hurdles – time and budget

Projects that stretch timelines and budgets can damage a company's reputation, as well as having a negative impact on future business prospects and that all-important profit margin.

So, what’s the answer?

The good news is that often, working to solve just one of these issues will create a positive flow-on effect across the other. For construction companies, a clear view of what is happening across the business, its subcontractors and supply chain is the best tool you can have.

In an industry where speed and accuracy are highly valued, choosing a cloud-based solution is no longer just a nice add-on – it’s essential if you want your construction business to move forward and grow.

We've developed a new eBook: Information: the most powerful tool for construction projects. It looks at the key challenges construction companies face, including:

  • What could be causing projects to go over time and budget
  • What strategies can be used to overcome project budget and timeline challenges
  • What tools are available to streamline business processes and foster growth

Bringing a robust enterprise resource planning (ERP) solution on board that’s been specifically designed for the construction industry will help overcome time and budget challenges by:

  • Connecting teams and improving collaboration
  • Solving issues faster with real-time visibility
  • Keeping clients constantly up to date
  • Accurately estimating and forecasting project costs
  • Automating and streamlining to keep costs down

With integrated functionality catering specifically to the needs of those working in the construction industry, an ERP system developed with construction projects in mind will ensure your business gains complete control over your projects, keep your teams connected, and make sure your projects stay on time and in budget.

Learn more about how the right construction ERP can keep projects on time and budget, and download our eBook, Information: the most powerful tool for construction projects.

Want to be our next success story? Let's talk.