Our recent blog looked at the 3-must have features when it comes to choosing construction management software. But, when it comes to maintaining detailed control of your contracts, you will want to look at the bigger picture and consider other elements.
Here, we’ve taken a close look at, contract value reconciliation, contract procurement and subcontractor and timesheet management…
Contract Value Reconciliation
When reviewing the construction industry ERP solutions on the market, make sure it includes functionality to report and manage month end contract cost and revenue accruals or Cost Value Reconciliation (CVR).
Why? CVR is a specific process to every construction business, allowing Contract Managers or Quantity Surveyors to compare costs against sales at month end to provide a running account of the project profitability. Because it directly compares cost and value, the areas of a job which are going over projected cost, or providing the poorest value, can be identified early on, giving you time to take corrective action or to prevent the repetition of such issues
Top Tip: If you typically have large jobs, look for a solution which allows for direct export and import routines to Excel with customer specific CVR templates
It’s important for Construction Industry ERP systems to effectively manage Subcontractors. When selecting a software package, you should consider whether the solution:
- Is HMRC recognised
- Has the ability to cater for timely payments & approval processes
- Is compliant with current legislation
- Can store historical information on subcontractor’s performance (allowing you to make future decisions on Subcontractors with ease) Has the ability to raise subcontractor orders with detailed information
- Provides comprehensive retention management and reporting
Any construction management software solution should allow for concise management of Contract Procurement. This should include contract specific discounts, contract procurement schedules, real time visibility of committed and accrued costs and detailed analysis of variance from budget.
What’s more, Contract Procurement systems should have various levels of approvals of requisitions, orders, invoices and payments, including multi-level approvals, such as QS to Contract Manager to Director. It often amazes us that construction companies will often have very poor or non-existent purchase approval processes in place, potentially exposing the company to fraudulent or unnecessary costs!
Timesheet Entry and Analysis
A Timesheet Entry system that ensure easy and efficient allocation of workers’ time to jobs is key. Correct resource time allocation is vital to analyse costs against budgets and for contact cost analysis, along with real-time updates into the contract ledger.
Top Tip: You will also want the ability to enter Timesheets remotely and, on any device, such as tablets and phones.
Want More Information? Our eBook looks at all the ‘Must-Have’s’ when it comes to Construction Management Software.