How the right construction ERP can keep projects on time and on budget

Ask yourself some hard questions

Construction is a fast-paced industry, especially now. Across New Zealand and Australia, construction is one of the most important industries for the countries' economies, and a key to post-Covid economic recovery.

Keeping up can be a challenge for individual construction businesses. If that's something you've been concerned about, it's time to ask yourself the following:

• Can your competitors offer better service, quicker completion, and lower prices than you?
• Can you effectively coordinate the people, materials, consents, costs, and timing of projects - small, medium and large?
• Are you experiencing a drop in productivity because your teams don’t have access to the programs they need to work effectively?
• Is morale slipping due to frustration and dissatisfaction?

If you've answered 'yes' to any or all of these questions, then not only will you continue to struggle to complete projects on time and on budget, but you'll fall behind your competitors and suffer significant reputational damage.

What’s busting your time and cost budgets?

Despite dramatic shifts in the construction industry's operating environment due to the impact of Covid-19, little appears to have changed in terms of the drivers of project delays and busting budgets. Why is this?

1. Fragmented teams
   Anyone working in the construction industry will know that fragmented teams contribute significantly to a variety of issues. On-site and office teams can take an almost adversarial approach to communication, collaboration and information sharing.
2. Siloing of departments and disjointed systems
   This leads to information being buried. Accessing a true understanding of the state of the project can require hours – or days – of manual data management, as some teams collate information into hard-to-read spreadsheets or disparate tools.
3. Clients out of the loop
   Keeping your clients updated throughout the project is a critical – and often overlooked – part of keeping construction projects on time and budget. Without timely updates, clients are ambushed by timing and budget issues that have already spiralled out of control.
4. Inaccurate budgeting
   Of course, the key to delivering projects on time and within budget is to ensure the timelines and budget are correct in the first place. With so many factors at play, larger construction projects can be at risk of inaccurate budgeting. While expert and experienced team members can help guide this process, nothing can replace real data.
5. Complicated workflows and manual processes
   Many construction teams use multiple software systems, alongside spreadsheets and other manual options, to manage different aspects of their work. That doesn’t just create complicated workflows, it’s also a recipe for unnecessary manual work, errors, delays and re-work.

Being able to manage information more effectively is key to addressing the delays and budget overruns that plague construction businesses. How do you achieve better information management?

Five critical steps to overcoming budget and timeline challenges

The solution is a specialised enterprise resource planning (ERP) system designed and built for the unique needs and requirements of the construction sector. The right one will ensure that although people, materials, and equipment are constantly moving in different directions, they can still be managed cohesively.

The right ERP system will also make sure that the data relevant to managing the business operations is optimised to enable construction projects to be completed on time and on budget. It will also allow the office, field team, engineers, project owners, subcontractors, and others to connect and collaborate in real time.

Backed by MYOB’s premiere cloud Enterprise Resource Planning (ERP) platform, MYOB Advanced Construction Edition is the latest industry-focussed solution in MYOB’s mid-market portfolio and follows on from the release of MYOB Advanced Manufacturing Edition. It's designed specifically with the needs of a construction company in mind, and will help meet the above five challenges by:

1. Connecting teams and increasing collaboration
   MYOB Advanced Construction Edition solves the issues of fragmented teams by facilitating information sharing and communication. Teams can work together to resolve issues; managers can move seamlessly between on-site and the office and everyone – even contractors – will access the same up-to-date information. This gives people an understanding of how their work affects colleagues and the wider project, which can increase job satisfaction, empathy and a better workflow.
   
   The Construction Edition increases collaboration across teams, as the Project Management feature provides an instantaneous information flow between your project management team, back-office workforce, and management.
   
2. Solve issues faster with real-time visibility
   When it comes to siloed departments and disjointed systems, a construction-focussed ERP changes the picture dramatically. With all information feeding into the system, you’ll have real-time oversight of every element of your project at every stage – from anywhere.
   
   This lets you identify issues early and make contingency plans if you suspect things are heading off-track. It’s the information you need to make better-informed decisions about budget, avoid costly errors and hold-ups, and keep an eye on the progress of each stage to improve management timelines. With real-time insights into project costs, you can also jump on potential budget overruns early and work with the client to find a solution.
   
   The Construction Edition's Daily Field Reports feature streamlines field management, while the Project Management feature means you can get a complete view of your project details including real-time field updates.
   
3. Keep clients constantly up to date
   A cloud accessible platform specifically designed for construction businesses is instrumental in streamlining communication by giving clients secure access to the relevant areas. With real-time information, they’ll understand what decisions need to be made when and are forewarned about any potential hurdles. This means they can work with you to keep things ticking along; choosing between options, seeking additional funding or helping to reduce scope.
   
   
   The Job Costing and Commitments features of the Construction Edition will give you the timely access you need to update clients and manage expectations in an efficient manner, including allowing the client to access information directly. Most importantly, these features ensure you always have the correct answers for any client questions.
   
4. Accurately estimate and forecast project costs
   The Construction Edition provides built-in benchmarks and detailed job costs information that will help accurately estimate future jobs and ensure you’re factoring everything in. Your project quoting will become more accurate, with insights collected from past projects fed through into the estimates.
   
   
   
   The Construction Edition's Job Costing feature also provides seamless customer billing, driven by real-time project costing, including up-to-date costs on labour, material, equipment, and more. You'll also have access to detailed job cost information, enabling you to identify problem areas and accurately estimate future projects.
   
5. Automate and streamline to keep costs down
   With a solution designed for the construction industry, you can automate manual tasks or whole workflows, streamlining administrative work and saving time and money. It frees your team to focus on tasks that keep the project running smoothly and within budget. Automation also helps to eliminate errors, so your financial reporting offers more reliable insights into keeping your current project to the estimated budget.
   
   The Construction Edition allows you to easily manage AP workflows, from entering an invoice through approval routing and cutting checks. You can manage and track all activities, issues, changes, project documents, and job costs from one central area. With integrated functionality catering specifically to the needs of those working in the construction industry, the Construction Edition helps users gain complete control over their projects and connect with their teams, with key features solving common pain-points.
   
   

   Book a demo of MYOB Advanced Construction Edition