How Construction ERP Software helps contractors execute projects with higher profit?

How Construction ERP Software helps contractors execute projects with higher profit

What is construction ERP/Management software?

It is a digital tool to streamline, simplify, standardize, integrate, automate, the construction workflow process, operations, workforce, and the resources to seamlessly manage the entire life-cycle of the construction projects from start to finish.

Why do contractors use ERP software for construction?

It’s one way to digitize and automate the whole construction process. As per McKinsey, construction companies accommodating digital technology and automation to conduct their business processes and operations are in an advantageous position to reap the benefits of the ever-vibrant sector.

Modern contractors are facing hurdles in the form of cut-throat competition. The three key areas that contractors find quite tricky to manoeuvre are;

  • Executing the projects within the schedule,
  • Executing them within the planned budget and
  • Minimising the overhead cost per project.

So in essence, a contractor stands to profit when the above-mentioned challenges are successfully addressed by a construction ERP software.

How does the construction management software support the construction team in maximising their profit?

erp

Enterprise-wide visibility on all projects – Construction ERP software integrates all the components of a construction project/unit under one digital platform that has 24/7 real-time access. 

Monitor and Control Project Performance – The construction management software that is built with BI (business intelligence) provides a birds-eye view of the project and operational life cycle that paves the way for the contractors to effectively mitigate adversaries.

Track the progress and usage of Men, machine and Material – At the site level, it is mandatory to maintain a fool-proof record that shows resource utilization. Construction ERP software not only provides a fool-proof record maintenance provision but also:

Helps project managers minimise material redundancy and subsequent wastage

  • Mitigates duplication of effort and data
  • Control project cost and escalations
  • Prevent delays and uncertainties by gathering data and presenting them in digital reports

Most construction management software is built with Lean Construction Principles to effectively reduce the misuse and over-exploitation of key assets and resources. This reduces pilferages and other slippages in the project workflow that may end up escalating the overhead cost to a great extent. The construction project management software achieves this by providing;

Tactive Construction ERP Software by experts in the construction domain is a powerful mobile and cloud-based platform that gives 24×7 real-time visibility and control over all your construction projects from anywhere.

benifits to contractors

Module wise Key benefits:

Tactive Construction Management Software consists of 8 modules that can be used as a whole or as a stand-alone product

Tender Management – Generate multiple proposals against each enquiry with internal cost workings & margins

Budget Scheduling – Plan LMP cost for every individual BOQs and manage indirect cost.

Project Management – Set limit to labour & subcontractor rate and quantity as per the budget. Do reconciliation for all your client and vendor invoices.

Procurement Management –  Centrally manage all material, equipment or machinery purchases using the procurement management module.

Inventory Management – Manage slow & fast-moving stocks with multiple warehouses.

Equipment Management – Monitor machinery wise productivity, diesel consumption, idle hours and preventive & corrective maintenance protocols.

Finance & Accounting – The balance sheet is generated whenever required by collecting inputs from all the other modules.

HR & Payroll –  Manage recruitment, on-boarding processes, Manpower Planning, Offer letter, Document management, Joining reports and Separation or exit processes.

Tactive can auto-generate 120+ reports that provide clarity on various slippages in project schedules, cost overruns, pilferages in the utilization of resources. If you are someone trying to revamp your existing construction operations to suite the future demands and requirements take a free DEMO of Tactive Construction ERP Software and see your profit raise.

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