Positioning Yourself to Implement New Construction Software

When construction companies begin to entertain the thought of implementing new construction management software, it is critical that they take a long, hard look at their current business processes, procedures, management controls, data protocols, and other related construction company functions, in order to be solidly positioned to institute software solutions.

Some construction companies, depending mostly on overall size and budget, will make feeble attempts at selecting and implementing new construction software without even thinking about their current “state of affairs.”  That is, they tend to think the software will fill any voids and make up for any lack of perfection in current business processes and procedures.

Unfortunately, construction management system software cannot fix all the imperfections; it’s that simple.  Thus, it is imperative that construction companies thoroughly examine, evaluate, redesign and improve upon current processes and protocols; in an effort to bring those up to date and into alignment with current best practices and construction management system software design parameters.

Rather than try to make the construction software fit old and outdated processes and procedures, Construction companies should always be looking to keep their business practices current with the latest Construction industry benchmarking and best practice philosophies.  That way, construction companies can keep their competitiveness keenly honed, and their proposals and project management endeavors will represent their attention and desire to being the best they can be.

How to Select your Construction Software Champion

You’ve decided your company needs new construction project software and have started looking at options. The question is: Have you designated someone in your company to be the software champion?

Every company, large or small, needs someone to lead the charge for improved efficiencies through better software. This software champion must have certain traits to ensure that the company achieves the expected return on investment.

Here are 5 critical traits that your software champion needs to have.

1. Experience in Software Implementation
Learning the ins and outs of software evaluation and implementation on-the-fly will jeopardize your initiative. That’s why your construction software champion must have prior experience evaluating and implementing software. Keep in mind that the scope of previous experience needed to make a sound decision increases with company size and complexity of operations.

2. Knowledge of Company Operations
Your construction software champion must understand how your company operates. If he/she doesn’t, taking the time to learn the processes and operations well enough to know what questions to ask vendors during demos is crucial.

3. Full Support from Management
Choose a construction software champion you can trust. Committing time and money to a complex evaluation, selection, implementation and training process is not a place for wishy-washy management that doesn’t fully trust their champion to complete the project successfully. When full support is provided to the champion, you won’t be tempted to pull the plug when the going gets rough (which almost always happens at some point in the project).

4. Respect of Peers
Without the respect and confidence of his/her peers, the construction software champion won’t get the cooperation needed to gather information and data to move to a new system. Choose a well-respected individual.

5. An Advocate for Change
Most people don’t like change and implementing new software is about as traumatic as it gets for the company’s accounting, project managers and IT departments. Your construction accounting software champion should have the skills to properly prepare and motivate personnel for change, while helping them feel less threatened by the new system. This requires sensitivity to people’s needs within the new software environment, as well as the ability to make the evaluation, selection and implementation of new software a team effort. Without a sense of participation, many employees will not “buy into” the new software and may even try, in subtle ways, to sabotage the initiative.

Summary

Your construction software champion is critical to a successful software implementation. He/she is the person with the most software experience and, once chosen, deserves full management support while leading to a final decision. There are many potential pitfalls along the way; trust your software champion to know where the mines are buried and how to avoid them every step of the way.

Test Your Construction Software Selection IQ

Think you’re well-prepared to launch your search and selection for new construction management software? Take our quick quiz to test your construction software selection IQ!

Question: Which references are more valid?

1. Companies who have used the construction software for many years
2. Companies who have installed the system within the last 12–1 8 months

Answer: 2. Recent references are best. The older ones have worked out any problems long, long ago.

Question: What one factor below has the best chance of guaranteeing your software selection success?

1. Buying at the right price
2. Getting good references
3. Past experience working with a system
4. The database it uses
5. Number of installations
6. None of the above

Answer: 6. A single factor cannot guarantee your success. Although this may seem like a trick question, you’d be surprised how many people think otherwise!

Question: You really can’t go wrong buying a recognized brand name with thousands of installations — True or False?

Answer: False. There are plenty of unhappy people using well known systems.

Question: The system’s database doesn’t matter as long as the software does what you need it to do — True or False?

Answer: False. Eventually, older databases stop being supported or become incompatible with more current operating systems (like Windows Vista). They may also lack full Windows conventions like opening multiple windows, performing searches, optimizing communication and navigating the screen.

Question: Who is the best person to lead an construction software selection project?

1. IT Manager
2. CFO or construction manager
3. CEO
4. Outside consultant
5. The person with the most time to work on the project
6. It depends

Answer: 6. The best person to lead your software search is the one who has relevant experience evaluating and implementing software and thoroughly understands your company’s needs. Choose that person wisely.

Question: What is the main reason why a software initiative fails?

1. Not enough time is allowed for proper training and installation
2. Bad fit for the business
3. Employee resistance to change
4. Staff turnover
5. Vendor misrepresents product capabilities
6. Lack of due diligence

Answer: 6. Although a failed construction software initiative is usually the result of a combination of all six factors, the most important reason is lack of due diligence on the part of the buyer.

Question: A Web demo of the construction software is the best way to begin your evaluation — True or False?

Answer: False. Requesting a Web demo is actually one of the last things you should do when evaluating construction software. Schedule demos only after defining your requirements, checking construction software reviews, and screening possible vendors using targeted questions.

Question: What is the most important criterion when selecting your software vendor?

1. A lot of installations
2. A large vendor with deep pockets so you know they’ll stay in business
3. Local support
4. A well-delivered demo presentation that answered your questions
5. A good recommendation from a reference
6. None of the above

Answer: 6. No single factor can guarantee satisfaction with your software vendor. Consider a variety of criteria when choosing a technology partner.

Question: A 30 or 60-day guarantee is adequate protection for your investment — True or False?

Answer: False. It is virtually impossible for any buyer to discover enough about the software within 30-60 days to know if it will be a satisfactory long term solution. But even if a vendor offered you a one-year guarantee, why would you want to invest 12 months of your time and resources without getting any return on your investment – even if you could return it? Do your homework up front and the 30-60 day guarantee won’t matter.

Is Your Construction Software a Profit Center or an Overhead Expense?

In the competitive world of construction, profit margins are tight. Jobs, service calls, employee productivity, and even your business tools must contribute to company profitability. This article highlights several critical capabilities that will help you determine whether your current construction software is a profit center or just another overhead expense.

Job Cost
The core of a profitable contracting business is job costing. The more accurate your cost in-formation is, the better you will be at managing your jobs for profitability.

Capabilities checklist:

* Job cost projections are easy to produce on a regular basis
* Provides early warning system for jobs that are off track
* Real-time access to actual costs is readily available

Project Management
Project management is all about detail tracking. Let a few RFIs or change requests slip through the cracks and you might find your crew working for free. Automated construction project management software will ensure that changes to the original contract are documented, approved, and invoiced for profit.

Capabilities checklist:

* Tracks job details in a single, easy to access database
* Change orders are tracked from initial RFI or directive to invoicing
* Forms provide turnkey production of submittals, RFIs, change requests, and more

Service Management
For contractors that perform service work, technology is readily available to support technician performance, enhance customer service, and automate billings. Taking advantage of this technology can produce a significant ROI while enhancing your company’s reputation as a cutting edge service provider.

Capabilities checklist:

* Dispatching allows for greater technician efficiency
* Streamlined billing for fast payment turn-around
* Advanced technology such as GPS tracking of service trucks or mobile communication with technicians that allows for real-time data exchange

Reporting
How well does your software deliver the information you need to make critical and timely business decisions? Catching problems such as cost over-runs early is imperative to maintain profit margins. Reporting should provide easy access to real-time information and offer the flexibility to customize delivery to meet your unique business objectives.

Capabilities checklist:

* Comprehensive standard reports and inquiries
* Custom reporting options to meet specific needs
* Owner/management overviews available for at-a-glance job assessment, with drill down to detail

Integration
Solid communication between your accounting, operations, and service staff is the glue that binds construction to profitability. Integrating your core technologies makes this communication possible.

Capabilities checklist:

* Single database equals single data entry, flexible reporting
* Allows for enterprise wide collaboration between accounting, service and operations by putting everyone on the same financial page
* Lowers administrative overhead

Profit or Expense: You Decide
Take time to evaluate how well your software streamlines work flow, automates processes, and provides real-time job information for informed decision making. If your program doesn’t provide you with many of the capabilities listed here, it may be time to consider whether your construction management software is a profit center or overhead expense.