How ERP will boost productivity in your construction business

Lorge Blog

The construction industry is experiencing technological disruption. With competition increasing and very complex administrative requirements, there are many challenges facing the construction industry. The pressure is on for your construction business to innovate to meet industry standards.

Businesses that tackle these challenges straight on and embrace this as an opportunity to innovate will inevitably experience significant growth. Technology, like an ERP system, will provide your business with a software solution that simplifies your complex processes. Whether you are a contractor or an architect, an innovative ERP solution has something to offer your business.

What can ERP do for you?

The main benefit of an ERP system is the increase in productivity across your entire operation. This is a key challenge within the construction as productivity has remained stagnant over the last 50 years, according to a Construction Owners Association of America (COAA) study.

This stagnation is because most direct labour time on construction projects is spent waiting for materials and equipment, traveling to the area, and planning how to do the work. An effective ERP system will optimise all of these inefficiencies that affect your bottom line.

Construction ERP will allow you to properly channel all your resources in one centralised platform with access at any time, from anywhere in the world. From planning, project control, to cost and revenue estimation the right ERP system will optimise your workflow and increase your overall productivity.

Cost Control

With every construction project there are several cost factors that need consideration such as raw materials, designs, labour, and the duration to carry out a project. With larger projects, these factors become increasingly complex.

Before securing a client, you are required to bid on the project with your estimated costs. ERP software enables you to easily take into consideration the cost factors across your business and generate an accurate estimation. You can bid on projects knowing that you are backed by accurate data that ensures your business avoids any unwanted and unanticipated expenditure.

Your business can also use ERP software to note the losses and profits associated with each project. These insights will allow your business to constantly improve the time and costs used for future projects.

Planning and analysis

Failure to plan, is planning to fail. Correct planning is the foundation of any successful construction project. Improper planning can lead to substandard projects and delays in completion, which will damage your reputation and business viability.

In construction, it is of vital importance that you know which raw materials are required and exactly how much manpower is needed. Using a good ERP solution will make it significantly easier to utilise your resources in the most efficient way possible.

A modern ERP will allow your construction business to plan and analyse in real-time the raw materials required, labour requirements, architectural design, and schedules. After implementing construction ERP software, you can make provisions for controlling your expenses and budgetary allocation; this will help your business steer clear of any contractual complications for the duration of your project.

Project Management

Construction projects require extensive management to keep the all moving parts working together. Monitoring project progress and distributing assignments across locations has always been a challenge for construction project managers. A modern ERP system makes this easier than ever before.

ERP software offers your business a flexible and robust system which enables project managers to keep all data in one centralised platform. You can easily track and monitor projects, delegate assignments and keep track of timesheets in just a few clicks. It also makes billing clients easier as you can see the time spent on each task, throughout the entire construction project from planning to competition.

As all data is captured and stored in real-time so you always have a holistic and accurate picture of your projects. This also means you can track and coordinate the array of factors that are involved in a successful construction project.

Effective communication

A breakdown in communication can be extremely costly, effective communication is essential to any project’s success. Projects can span several years and if you are a large construction company, you may be handling more than one client at a time. The exchange of information is vital to ensure projects are completed timeously and that errors are avoided.

An effective ERP solution will ensure that internal communication stays on track so that your external communications follow suite. Traditional communication channels rely on a variety of disconnected spreadsheets and presentations that are often impractical and inefficient. With a centralised platform, your data is secured and can be exchange more easily.

You are safeguarded with the latest data security and can provide restriction on who can and cannot access the data. For example, data to be shared with clients versus data that can only be seen by your staff. The real-time functionality also means that all data is accurate and up to date throughout the entire construction process.


The construction industry is at a crossroads – stay stagnant with dated processes or embrace technological disruption as an opportunity to grow. Construction companies that do not adapt are sure to struggle in an increasingly digital era. An effective ERP system will bolster your company into the digital age and help it grow through increased productivity and efficiency. Find out how to implement the best ERP system for your business today.