Making the Switch to Dedicated Construction Management Software
ByWondering if now is the right time to make the switch from a generic project management software package to a dedicated construction management software package? There is never a clear answer, and your decision will largely depend on how much you want to go from simply recording job data to proactively managing jobs, deadlines and costs.
Here are some questions to ask yourself or from your company before making the switch.
First, you need to be aware that upgrading your software costs more than the price advertised by the vendor. Beyond the actual cost of the software, you need to be prepared to provide the funding for training. If you aren’t prepared for the investment in intense training on top of the software price, now may not be the time to switch.
Further, you need to be able to commit the necessary time and resources to get the new software up to date with current and old data. If not, the software’s capabilities will be limited.
Also consider why you’re considering new software in the first place. Have you had bad job experiences that resulted from poor tracking? Do you currently have real-time job cost tracking? Or do you want new software just because it seem like a good idea?
Progress billings are another thing to consider. Do you create them separately from your accounting system and need a way to integrate them? Does your current system ensure that all costs incurred are billed? Would you benefit from automating that process?
What about purchasing controls? Does your current system monitor your committed costs in relation to your estimated costs?
How do you handle estimates currently? Do you use a spreadsheet-based method? Would you benefit from a more powerful estimating system or are you getting by just fine with what you currently use?
Do you have new management that is pushing for new software? One of the biggest reasons that companies switch software is that a new set of management comes in and recognizes the need for a better software system. Sometimes, new management is brought is specifically for that purpose.
Other things to consider are the growth rate or predicted growth rate of your company. Will your current software be able to handle the growth in an efficient manner? Or should you upgrade before you risk losing productivity in the future?
Finally, consider how much you can spend to acquire new timberline software. If you can’t afford an initial investment of around 2-3% of your current net revenues, you may want to delay the expense. On the other hand, if the additional benefits of real-time data reporting will dramatically increase your net revenues, the steep up front cost may be worth it.
If you plan to make the switch, you need to figure out how you’ll find the best software for your company. A quick web search will point you to more software that “looks” like it will work than you can possibly sort through. The challenge becomes creating a short list of possible solutions and choosing between them. Of course, many companies struggle with step 1 – getting the short list. This is where it can be hugely beneficial to check out construction software reviews that will allow you see beyond the marketing hype that all vendors apply to their products. What this really means is that you need to find a person or a team with the capability to perform this difficult task.
Picking the right person to head up the search for new software should be done with care. Don’t pick somebody simply because they have the most free time or will be the cheapest. Likewise, stay away from people that don’t have experience working directly with construction software, like accountants.
Ideally, you will be able to find a person in your organization that understands both the accounting and operational sides of your business, has strong communication skills, and is trusted by upper management.