Posts Tagged ‘construction companies’

In India, until a few years ago, the construction industry used to be counted as one among the unorganized sectors. But, in the recent years, with the entry of leading realty players in the market, the construction industry is increasingly and rapidly turning itself into an organized sector.

Being a part of the organized sector has its own advantages, one of them being access to the latest of tools and technologies that turn businesses more effective and powerful. One such tool is the constructions management software that is designed exclusively for the construction industry. The software streamlines business processes by automating the key functions of the construction business, thus turning them more performance-driven and profitable.

The constructions management software simplifies work by automating the tedious and error-prone aspects of the office work, like receipt generation, document management, work scheduling, etc. This is in addition to the ability of the software to comprehensively and entirely manage a project from the start to the finish. The software is also able to manage the lease and maintenance management of a project, once its complete construction is done with.

The constructions management software can also be integrated with other back office software like those of HR & payroll and financial management solutions. These automate and simplify the functions of the human resource and finance and accounting departments, which, in turn, take the excess burden off the departmental executives. The software is able to handle the functions of payroll management, employee leave management, appraisal management, bank account management, calculation of taxes, cost centre categorization, and so much more.

Constructions management software is a highly secure, scalable and customizable solution, with features that enhance the functioning and performance of construction companies. The high security of the software allows only the authorized users to access the system and make changes, if any. Scalability is a software quality by virtue of which the system can readily and gracefully accept increasing amounts of data. Similarly, customization of software allows it to be tailor-made as per the needs and requirements of a company.

It is, indeed, high time that construction companies deploy constructions management software for the benefit of individual companies as well as for the entire industry.

This article is posted by the webmaster of http://www.pingasolutions.com – a software development & design company India, provides the services for Real estate software, software Development Outsourcing.

Author: Rajendra Prasad
Article Source: EzineArticles.com
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Many construction companies and contractors still have not embraced construction estimating software technology as a required business survival tool. For that matter, many have not embraced technology period.

Remember in today’s brutal market, survival is directly related to being a leading company that stays ahead of the competition, maintains loyal customers, and always makes an above average profit. Proper automation and utilization of construction estimating software can allow a struggling construction company to get out of the doldrums and become seriously profitable.

Sadly, some surveys even indicate that staying on the cutting edge of technology was just not a priority with many construction companies. For those that do care, most of these companies are scrambling to catch up with computerization, construction estimating software, backend software management systems, etc. and are too often content doing the minimum to stay even with their competitors and customers.

One of your company’s goals should be to become a technology leader. Consider hiring only those project managers or superintendents who are totally literate in email, word processing, scheduling, and construction estimating software.

Failing to cater to your customer’s needs and demands for your implementation of technology can cost you business; it can make or brake your company. Over 75% of contractors use email to correspond with customers and 65% to communicate with architects and engineers. A growing number of contractors use the internet for job correspondence with other contractors, subcontractors, or suppliers. Virtually all construction buyers feel that contractors using construction estimating software provide more accurate quotes.

Many times contractors reluctantly follow their customers’ wishes, but don’t embrace technology for their own business and project management practices. Only about 10% use the internet to submit invoices or progress payments to customers, and virtually none use the internet to transmit their construction estimating software bids.

The construction industry is considerably behind the times compared to others. In the retail business, products are ordered, produced, shipped, paid for, and re-ordered without a single piece of paper.

Construction still requires paper invoices, original and notarized signatures, conditional and final lien releases, joint checks, architect and bank inspector approvals, and copies for everyone involved. This is distressing because most of these paper functions could be made completely paperless it the proper technology, processes and construction estimating software is implemented.

Computers are becoming more of a required tool as at least 50% of project managers carry laptops while only around 25% of field supervisors have or use a computer. Many of these computers are used only for email and basic communications but very few are using these computers to dynamically link their construction estimating software and backend systems to the field

About one half of construction companies use some type of scheduling software. Strongly consider upgrading your scheduling software to a more sophisticated, cutting- edge, comprehensive package that allows you to import bids from your construction estimating software. Your customers will quickly notice the difference between you and your competition and this distinction can be a key feature in being much more successful going to contract with a larger share of your construction estimating software bids.

Technology will save you cash.

Overhead expenses can most often be reduced by at least 25% by implementing and maximizing the use of technology and construction estimating software. It can help you become much more efficient as you eliminate paper, faxes, mail for project minutes, job correspondence, shop drawing tracking, subcontract logs, change order requests, daily job reports, and many other items.

It’s very surprising that only 20% of subcontractors and 33% of general contractors use a comprehensive project management software package. Regrettably, very few construction companies are dynamically linking their project management and scheduling software with their construction estimating software.

Remember, the construction estimating software bid in the start of every project. It is the heart of your business. You are assured of missing labor, materials, subcontracting, equipment and other miscellaneous costs and functions if you fail to dynamically link your entire project via the construction estimating software system.

Of course, all of these statistics may not really surprise you. Many contractors consider themselves computer illiterate, and most feel that they have only the most basic skills in using a computer. Maybe that’s not surprising when most contractors would say that their kids know more about computers than they do.

The world is changing and technology is a reality. Companies who realize these facts become leaders, while those who don’t fall behind and never catch up. Using construction estimating software coupled with other basic technology can make you more efficient, more professional, help you win more profitable contracts, keep track of job costs, and make you money.

Are you keeping up with technology?

Phillip P Gilliam has been helping professionals in construction estimating software, marketing, finance and business management for over 37 years. Phil has a wife and three daughters and resides in Florida. He attended WSU in Dayton, Ohio and obtained a CmfgE in Robotics. He presently is the CEO and President of Discover Software Inc. http://www.easyestimating.com

Author: Phillip Gilliam
Article Source: EzineArticles.com
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If you are like most small business owners, you don’t view yourself as a software technology expert. In fact, you probably approach new information technology (IT) projects with trepidation and hand it off to the back-office staff or third-party consultants. This is an understandable and healthy fear given that the majority of software projects fail.

This is also one of the reasons why small and medium size businesses lag behind large companies in software technology adoption. While the largest manufacturers, retailers, and financial services firms charge into the 21st century with optimized supply chains and web-based customer management applications, too many small or mid-size businesses are still struggling with inefficient, paper-based business processes.

The good news is that you probably already have the experience you need to change your company’s success with IT; the same skills that make you a good manager generally can be applied to software selection. Selecting software requires a detailed plan, an accurate budget and meticulous project management. Get over your fear of technology and you can be on your way to the first of many successful IT projects.

Why So Many Software Projects Fail

There are many reasons why IT projects fail, but we’ve isolated what we believe are the top five:

• Limited budgeting and planning;
• The wrong team for the job;
• Poor requirements planning;
• Lack of a rigorous selection process; and,
• Weak change management or training.

Ten Steps to Successful Software Selection

Now that we have identified the leading reasons for IT project failure, we will outline in ten clear steps how construction companies can manage an efficient selection process that ensures success.

1. Assemble the Right Team. Start with identifying an executive-level project sponsor who will ensure the project gets the right funding and attention throughout the organization. Next, you’ll need a project manager who will oversee all details of the project from start to finish. If you have an IT staff, they obviously have an important role to play in the process, but don’t let your software decision become exclusively technology-focused. Finally, you’ll need to identify end-users that will enthusiastically contribute their requirements and ideas for improving processes.

2. Establish Clear Goals for the Project. Once the team is selected and assembled, a good first step is to outline the goals of the project. These goals will justify the project expense and guide the team as difficult decisions arise. All choices during the project should be weighed according to how well they help achieve goals such as: “close the books faster and more frequently;” “improve my sales processes and pipeline tracking;” or, “provide more efficient customer service.”

3. Build a Detailed Project Schedule. The next step is to create a project schedule that outlines all the major activities and their sub-tasks. You should consider each activity’s various dependencies and resource requirements. Be sure to assign an owner to each activity and even to each task. The project schedule itself can be as simple as an Excel spreadsheet to track the various tasks or as sophisticated as using project management software to manage the project with Gantt charts and a Critical Path Method network diagram.

4. Create a Budget for the Project. An otherwise successful software project could be considered a failure if it comes in over budget. That’s why it is critical to have an accurate budget to work against. The biggest budgeting problems occur when the project team fails to account for costs outside of the software itself, such as: new computer hardware required to run the software; platform software requirements such as a new database; or, consultants to help install and customize the software.

5. Define Your Requirements. The next step is perhaps the most important in the entire process: defining the functional and technical requirements you have for the new system. As software selection practices have evolved, requirement planning has shifted from simply a list of features – often influenced by software vendor marketing – to a more deliberate, thoughtful analysis of “current” versus “optimal” business processes. This requires that the project team maps out existing business processes (perhaps using a flow chart diagram) and then considers how each could be improved.

6. Draft a Request for Proposal (RFP) and Evaluation Framework. Now it’s time to draft a request for proposal (RFP) and an evaluation framework. The RFP will take the form of a Microsoft Word ® document of questions that can be sent to software vendors for their response. It should cover all of the features and functions identified as critical during the process mapping stage. It should also cover technical requirements, such as which databases and operating systems are supported, or if the software is offered as “Software as a Service” such that it is hosted by the vendor and accessed over the Internet through a web browser.

An evaluation framework is a spreadsheet in which you track each product’s capabilities relative to your list of requirements. Typically this would consist of a Microsoft Excel ® spreadsheet with all of your requirements listed in rows down the left side and each of your short list vendors represented by a different column.

7. Develop a Short List of Products. Next you should create a “short list” of software products -three to five products that meet your high-level requirements. If your short list grows beyond five vendors, you will not likely be able to evaluate each in sufficient detail. If the shortlist is less that three, you are probably overlooking a few good products. To build a shortlist, start with a longer list of products assembled from numerous sources, such as: industry trade magazines, especially annual tech issues; trade shows and conventions; and, recommendations from peers or advisors (e.g. CPAs). Filter the list down to three to five products based on questions such as:

• Does the company serve your specific industry?
• Do they serve your size of business?
• Do they present a professional image (e.g. quality website)?
• Do they meet your technology requirements (e.g. database)?

8. Evaluate Short List Products. The next step in the process is to evaluate your shortlist of products to choose a single “winner” and a contingency “runner-up” in case reference checks or negotiations don’t go well with the first vendor. Start by sending each vendor a copy of your RFP and ask them to complete it. Concurrently, begin collecting information from each vendor such as brochures, papers, trial versions of their software and demonstrations. As you review this information, use your evaluation framework to track how well each vendor’s products match your requirements.

After completing all of the demonstrations and reviewing the RFP responses and product literature, it is time to review the evaluation framework in detail and rank each product. Using the feature-by-feature scores you entered for each product and the weightings you assigned to each requirement, rule out any product that falls short of your most critical requirements. Then prioritize the others according to their performance across all of your important requirements. Finally, select one vendor that you feel is best, as well as a runner-up.

9. Check Customer References. It is critical at this point that you do your “due diligence” by checking the winning vendor’s customer references. Moreover, you need to “play detective” and dig into these references. Keep in mind that the references to which a vendor refers you are most likely their happiest customers. To offset such “cherry picking,” require at least three customer references and prepare a detailed list of questions that require specific answers rather than broad, positive generalities. Even better, try to locate your own customer references by networking with industry peers, attending trade shows or user groups and talking to your industry association.

10. Negotiate the Deal. The final step in your selection process is negotiating the right deal. Don’t stop being diligent just because the finish line is insight. This step of the process will determine the price you pay for the software, the level of service you receive and the recourse you have if things go wrong. Key areas to consider in the negotiation include: what type of license does the vendor offer; how is the software priced; what are the maintenance and customer support policies; and, what are your rights to new versions of the software and periodic upgrades. Keep in mind that for medium to large size deals, there is typically room to negotiate with the vendor on all of these points. The larger the check you are asked to write, the more room for negotiation.

Software selection is not easy and should never be considered a second tier project. The right software, implemented properly, can have a major positive effect on your business. Follow these guidelines and you are on your way to IT project success.

Don Fornes is the president and founder of RiverGuide, Inc., a website dedicated to helping businesses research and select software applications. Email Don at don@riverguideinc.com or visit RiverGuide at http://www.riverguideinc.com.

Author: Don Fornes
Article Source: EzineArticles.com
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Skills are important, but so is having the right tools for the job. Yet, many construction companies fail to see the need for a construction accounting software package has payroll functionality. No doubt they have the skills to complete the job, but this tool can help to make that job more profitable.

Payroll reflects the costs of human labor for a given project and it is paramount that it be as up to date as possible, to ensure charges to projects are properly directed, and to help project managers and company financial folks keep abreast of day to day project cost impact from payroll figures.

Estimating up to date figures is inaccurate and takes time, which costs money. The amount of time it takes is often increased due to the pay structure of many construction companies – often workers with more diverse skill sets receive higher wages. Calculating the potential costs for 12 workers for varying time periods that have different wages can get confusing and will most certainly take time away from activities that a manager could be doing that add value to the project.

There is no denying the benefit of real-time data since it leaves little question or confusion about the overall project accounting from day to day or week to week. If the data is days, or even hours old, it can lead to bad decision making which then can lead to unacceptable outcomes with regard to profit and loss.

In an economy that moves faster than ever, companies that are armed with as much real time data as possible generally have the best results. New risks constantly arise that need to be accounted for, and having real time data allows decision makers to make the best decisions at any given time. Decisions can also be made much faster as there is no need to estimate costs to date when you have real time data in your hands. Saving time equals saving money.

Thus, it should be no surprise that most new software includes as much real time functionality as possible. Today’s market moves faster than ever and new risks arise every day, requiring decisions to be made in the middle of the project that were not expected. Which is better – making those decisions with the most accurate data you can possibly have or with old data and some estimates?

However, be aware of the minor caveat that real time data can also become an administrative nightmare, as it relates to manpower allocations and the like. This is rarely a problem in well run organizations.

On-the-job decisions to change things are inevitable. These changes lead to few projects being executed exactly on budget and are more of the rule than the exception.

For example, perhaps a big milestone is approaching for a particular project and the supervisor realizes that he does not have the personnel on hand that was planned to complete the task. As a result, the supervisor has a different group complete the task. Thus, the actual cost of that piece of the project will either be over or under the budgeted amount. With construction software with real time payroll data, decision makers will be able to see those different costs reflected in actual costs as they happen. With this data, they can make the right choice about how to make up for the overages and finish on budget or how to continue to operate under budget.

Finally, rest assured that most software comes with some built in flexibility for reasons like those mentioned above. Field supervisors need to be able to deviate somewhat from the initial plans, so they can continue to move forward toward project completion on time and, hopefully, within budget! Having real-time payroll data is simply the most effective way to deal with these bumps in the road. Check out construction accounting software reviews for further guidance in selecting software with payroll functionality.