What is Construction Software?

Construction management software is a combination of applications to aid project

managers, engineers, general contractors, and architects in improving decision-
making in performing the necessary planning, building, and assembling task
management in construction projects. Tools include project and contractor
management, estimating and bidding, and job cost accounting to organize jobs, win
more bids, and ultimately make work more profitable.

Cost accounting capabilities help project managers determine the project costs of a
construction job by analyzing labor, materials, equipment, and
subcontractors. Construction project management (PM) capabilities
coordinate planning, scheduling, resource allocation, quality
management, time tracking, and collaborative document
sharing. Together, these features help construction businesses to plan and control
their build process more effectively.

Buildertrend uses a cloud-based project management platform to provide an overview of your

residential construction work.

Features of Construction Management Software

 Feature Functi
Construction Accounting Tracks revenue and expenses.
accounts payable, accounts re
general ledger.
Job Costing Facilitates the assignment of c
categories in order to enable i
profitability analysis. Such cos
labor, equipment, materials, an
Estimating Builds cost models for executi
functionalities such as takeoff
orders required to complete a
Project Management Coordinates the execution of p
planning, plan markup, equipm
scheduling, resource allocation
tracking, and collaborative do
members, clients, and specialt
Document Management Keeps digital copies of all doc
one secure and easy-to-acces
Bid Management Streamlines the entire constru
process, such as project plann
templates. Handles RFIs and s
members and any change ord
Project Scheduling Assists in project scheduling b
labor and resources to create
and Gantt charts measure pro
accurate completion date.
Customer Relationship Management (CRM) Keeps detailed information on
customers, and prospective le
According to our recent Construction Technology Trends survey, two-thirds of
construction software buyers desire project management tools for job costing,
project tracking, and project estimating.
Beyond the core construction management features desired, nearly half of respondents
wanted to improve their takeoff and estimating process.

Best Construction Management Software Benefits

Home builders, remodelers, and other users of construction management software
can improve their business workflows in a number of ways. Benefits include:

Eliminate Time-Consuming Manual Processes

Manually tracking projects in a spreadsheet or jotting down cost estimates with

paper and pencil might be a familiar or comfortable way of running a business, but
it’s not the most efficient. It also leaves you open to human error. Construction
management software optimizes how you schedule your workers and predict project
timelines. And with cloud-based apps, you can even make updates from mobile
devices while out in the field.

Control Over Job Costs

Cost management tools help to keep project expenses in line with functionality such
as job costing, project tracking, project estimating, material take-off, time and
materials billing, bid management, and purchasing. With real-time updates, you can
see how you’re spending your budget before going over. And you can make updates
to the final bill for accurate invoicing at the end of each project.

Procore shows detailed information about construction job costs to better manage your
budget.

Stay Organized with Document Management

Construction management software offers a broad, consolidated view of the business

in one spot. This can help construction professionals make more effective use of their
time through project tracking, reduce expenses through job costing, and collect on-
time payments through simplified billing and invoicing.

Properly organizing and storing physical documents on an active jobsite comes with
a lot of risks. Construction software provides document management tools for easily
storing and retrieving digital versions of all your most important documents, from
project bids to final invoices. Project teams can immediately collaborate by creating,
sharing and archiving documents to show real-time progress.

Work On-Site and Away from the Office

Construction software can provide collaboration in real-time so users can access and
upload project contacts, plans, drawings, and photos at any time, from any location.
Project teams can also improve their project collaboration via punch lists created in
the field. Punch lists let project teams conduct efficient walkthroughs and inspections
to close out faster.

Schedule out all construction tasks by order of priority with Fieldwire.

Construction Management Software Costs

The starting cost of cloud-based construction management software ranges from $7
per month to $200 per month when using a subscription-based pricing model.
The total SaaS price is generally dependent on the number of users and the level of
applications needed. There are some free construction management software
options, though there are often associated costs for additional users or specific
functionality.
43% of companies surveyed said they spend about 1-2% of their annual revenue on software
expenses.
Our construction buyers trends survey found 43% of construction
businesses spend 1%-2% of their revenue on software, making it a worthwhile
investment. “With rising material and labor costs, firms will likely struggle to
maintain their margins in the coming year,” according to Construction Dive in a
review of construction industry trends. Construction management software helps
businesses trim those costs and ensure profit margins aren’t squeezed.

Types of Construction Software

Most construction project management software is created with a specific scope of
business in mind, such as accounting or project scheduling. Depending on your size,
you might weigh certain project management solution features above others:

Small Builders and New Companies

If you’re small or new, job costing will be the most important feature to help you
manage your basic accounting much easier. Most basic construction accounting
software should offer some sort of cost management functionality for making general
estimates on upcoming projects.

Mid-Level Companies
Growing and established companies looking to upgrade will likely desire a more in-
depth functions beyond basic accounting software, such as estimating tools and
some level of bid management. These functionalities are best provided by an
industry-specific construction management solution or from a vendor specializing in
software implementation in construction environments.

Large Construction Companies

Companies in need of a full suite of functionalities should look

towards construction ERP solutions to provide enterprise-level construction
management. These will be popular software solutions with a long proven track
record of assisting construction companies. Advanced ERP software can have a level
of custom-development to make them more in-tune with a company’s estimating and
bid management needs, to ensure the solution works along the project lifecycle as a
complete all-in-one system.

In our recent technology trends survey, 37% of construction businesses identified

ease of use as the most important consideration when buying construction software.
Other notable considerations include: