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To find the best ERP for construction companies, we considered over 25 of the leading CRM providers in the space and narrowed it down to 16, which we then evaluated across five key categories and 21 different metrics. Our ratings consider factors such as transparent pricing, employee self-sufficiency, compatibility with third-party integrations, access to customer support and ratings. All ratings are determined solely by our editorial team.
The Best Construction ERP
Summary Best Construction ERP
What Is Construction ERP?
Construction ERP software is the digital backbone that supports your entire construction business, from the back office to the job site. Construction ERPs don’t differ that much from traditional ERPs—they come with all the document management, finance/accounting, CRM, HR management, supply chain management and workflow automation capabilities that you’d expect from an ERP.
Where construction ERPs differ from their vanilla counterparts is in the added functionality that addresses construction-specific problems. Construction ERPs are built around strong project, labor and asset management tools to keep jobs on track and under budget, and support special finance and accounting features to ensure every cost is accounted for. They also feature building information modeling (BIM) and purpose-built modules to enhance job planning and bidding.
Benefits of Construction ERP
The most noteworthy benefits of construction ERP include:
- Organize chaos: Managing any one facet of a construction company is a full-time job. Trying to juggle all of them is an impossible task. ERPs centralize disparate, interrelated business information including financial and accounting documents, contracts, permits and more. They also make it easy to keep track of inventory, manage contractors and subcontractors, and deal with risk.
- Enhance productivity: AI- and ML-powered analytics tools enable construction companies to automate processes and unlock insights that would go undetected by the naked eye.
- Better bidding: Poor planning all but guarantees poor outcomes. This is especially true in construction. Construction ERPs provide construction companies with the tools they need to estimate design, labor, materials, tools, equipment and other costs quickly and accurately.
How to Choose the Best Construction ERP
While most ERP solutions that target construction companies will offer similar features and functions, some are built with a particular customer in mind. The platform that is best for a small plumbing business might not be a great fit for a large general contractor.
When it comes to selecting the right ERP software for your construction business, you have to consider your specific field, business size, business goals, and business needs, and balance it with your existing IT budget and environment.
How Much Does Construction ERP Cost?
Construction ERPs don’t have a fixed cost. They range from hundreds of dollars to hundreds of thousands of dollars each year. Ultimately, the cost that you pay will be a function of the provider, the specific package/modules you buy, the number of licenses you purchase and additional IT requirements (such as labor and infrastructure to support the ERP).
One thing to keep in mind when you’re budgeting for a construction ERP is that it should at the least save you money, and at best, pay for itself. In other words, the cheapest option might not always be the best option. Sometimes spending more for the right system can help you save even more.
Methodology
Forbes Advisor analyzed specific criteria from over a dozen leading ERP providers to compile this list of the best construction ERPs. We compared basic functionalities, including analytics, forecasting, data storage and automation tools. We also considered purpose-built modules, such as those for finance/accounting, HR, logistics, manufacturing and sales/marketing departments. Pricing plans and real-world reviews were also taken into account.
Pricing – 10%
To assess pricing, we compiled pricing data that was made publicly available by the vendor. We also determined if a free trial was available, so customers could try it before they buy it. Typically, customers must contact the provider to obtain pricing information and free trials are rare. ERPs that had publicly available pricing information and a free trial received the maximum pricing score.
Key Features – 30%
The key feature score is based on the completeness of each platform’s core ERP functionality, including data storage features (cloud and on-premises), real-time reporting/analytics tools, plus accounting, warehouse management and software integration capabilities.
Unique Features – 20%
The unique features score evaluates each platform’s advanced and purpose-built features, such as automation capabilities, budgeting/financial management, forecasting tools, CRM and HR management, manufacturing features and supply chain management.
Third-party Reviews and Ratings – 10%
Forbes Advisor’s research team combed customer ratings and reviews from G2 and Capterra to determine the third-party reviews and ratings. Both the volume of reviews and rating scores were considered for this criterion.
Expert Score – 30%
Forbes Advisor’s team of experts and analysts scored each platform’s feature set, value for money, popularity and ease of use.
Frequently Asked Questions (FAQs)
What is an ERP?
ERP is a software system that helps organizations to manage and automate various business processes, such as financial management, supply chain management, HR and more.
How do ERP systems work?
ERP systems are comprised of integrated modules or applications that connect to one another and share a database. You can choose the modules that apply to your business.
What are examples of ERP systems?
There is no shortage of ERP providers, and many ERP providers offer ERP systems in several flavors to accommodate different customers. A few examples of an ERP system include Microsoft Dynamics 365, SYSPRO ERP and Odoo.
What is the importance of ERP in the construction industry?
ERPs are important to the construction industry because they serve as the digital backbone for supporting disparate, interrelated business information and processes. Without an ERP, it’d be very difficult for construction companies to keep projects on time and under budget.