Posts Tagged ‘construction software’

Undertaking the task of identifying and implementing a new construction software package is not an easy thing to do. To be successful, you need to have a complete understanding of your business objectives and how the software fits in to those objectives so that you can develop a plan to meet those objectives.

The purpose of this article is to discuss several elements that are of key importance in getting new software installed and implemented in the fastest and most effective manner possible. By following the advice given here and developing a strategic plan prior to making the switch to new software, you will have a “implementation blueprint” that will give you control over the entire process.

Converting Data

When you install new software, there will inevitably be a time when you’ll need to get all the data off of your old system and put it on to the new system. There are essentially two options for this data conversion: manual conversion and electronic conversions. Ultimately, the choice you make will depend on the services that your vendor offers and how much of your old data you want to transfer over to the new construction software system.

Manual Data Conversion: Converting your data manually is exactly what it sounds like – you, or someone at your company, manually reenter the data in to your new software. Of course, the main disadvantage of doing the data conversion this way is that it is a very time and labor intensive task. It can be helpful to use a team approach and have the entire staff tackle the job at once. In cases where a company decides to move a minimal amount of data over to the new system, manual conversion can be more than adequate as it may not take as much time as it would to move many years worth of data.

One thing that companies that opt for manual data conversion need to be aware of is data entry errors. Working long hours copying data from one system to the other can be very tiring. If there is a deadline on top of that, you are almost asking for mistakes to be made. If you choose to do manual data conversion, you need to ensure that there are quality control procedures in plact to verify the accuracy of your data.

Electronic Data Conversion: Likewise, electronic data conversion is pretty self-explanatory. It involves using some sort of software to transfer the data from your old system to the new one. This is the ideal solution in most cases because it is quick, it requires little more than a “set it and forget it” amount of labor, and generally copies the data as accurately as possible.

If your construction management software vendor offers an electronic data conversion option, you should probably seriously consider it. They should be able to provide you with guidance necessary to retrieve your old data from your system and they should be able to explain how to convert it to the new system.

One thing to be aware of when you use electronic data conversion is the quality of the data and the formatting of that data. You need to understand exactly what your vendor can and cannot do with your old data and the new system before signing on for an electronic conversion.

Electronic data conversion can usually import master files, customer information, job cost history, open invoices, and other common data. However, it does require some technical knowledge to oversee the electronic data conversion. If you do not think you can handle this task, you may want to speak with your vendor to see if they offer technical consultants that can help.

Data Cleanup

When converting data, it is important that you’re only transferring good, clean data to your new system. If you put garbage in to the new system, it’s going to send garbage out. In other words, the performance of your new system will be directly related to the quality of data that you put in to it – both initially and on an ongoing basis. This is true whether you use manual or electronic data conversion. By taking the time to clean up your data before conversion, you have an opportunity to:

* Get all of your data standardized
* Identify and delete duplicate records and find missing records
* Delete unnecessary data
* Reformat data where necessary
* Search for and fix corrupted information
* Test the validity of the data when you export it

Testing

Once you have converted your old data to the new system, you need to test it. This is a crucial step in the overall “data cleanup” operation. Whether data is manually or electronically converted, you need to test the data to ensure that it is accurate and to give yourself a chance to evaluate the critical processes that the construction software tracks and reports on.

It may help to think of testing as a “dry run” for the real deal. Run the same reports using your old software that you run in the new software and make comparisons. Use these opportunities to identify and correct issues to avoid problems after you “go live” with the new software.

You may want to consider hiring temporary help during the conversion process to assist with data entry or to provide the day to day support that is necessary to keep the business running smoothly while you focus on the software conversions.

Training

Once you have installed the new software, training your staff to properly use the software should be your top priority. It cannot be said enough – DO NOT cut corners on training. Having adequate training for your users is the only way that you can ensure that the software provides the long term benefits that you desire.

On-site training will almost always be the best option. It gives end-users the ability to work with real data and get comfortable with the new software in an environment where they will ultimately be using it. It is best to start training on the core modules – job cost, payroll, accounts payable, and so on. Once your users have mastered these modules, you can begin to move on to the more complex things that the new software offers.

Follow up training is equally as important, but can be done using a combination of phone call, online training, and on-site sessions if necessary. Learning how to use the software should be done proactively and not reactively, and ongoing training is the only way to ensure that is accomplished. This growing knowledge of how to best use the software will give your company a competitive advantage over your competition that cannot be matched.

Finally, it is always a good idea to have on-site training “refreshers” once a year, after software upgrades, and if/when you experience a high employee turnover to ensure that you don’t fall behind.

Continue Your Relationship with Your Vendor

After you go live with the new software you need to make sure that you maintain a relationship with your vendor. Talk to their development team and tell them about ways that the software can be improved. Attend conferences. In short, do anything you can to nurture the relationship you have with your vendor – it will come in handy when you really need it to.

Construction accounting is a complicated thing. The time and money that your company invests in upgrades are commitments to your long term success. Only by having a positive relationship with your vendor can you ensure that you get the most from your software for as long as possible.

David Kraft is a freelance author that specializes in the field of construction accounting software. He writes articles that are aimed at helping construction professionals choose the right software for their business, which is often a difficult decision. Please check out his construction software site for more information.

Author: David Kraft
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.

One of the hardest parts of a construction management software selection project for a sizeable construction company is that of selecting the right vendor. Obviously, there are a number of suppliers of Construction Management Software who would like us to believe their product is the best there is. They go to great lengths to market the strengths of their products, and to disclose the alleged weaknesses of other software vendors’ products. Such is the game of the free enterprise business system.

There are several things you can do, however, to help separate the players from the pretenders. Obviously, it is well worth it to do some research up front before you actually solicit demonstrations from vendors. There will be regrets if you fail to do thorough research up front and end up buying inadequate software from a vendor who happened to have a good salesman but has a product that doesn’t perform. Likewise, a little bit of research can save you time in the end as you’ll be able to identify vendors that are not satisfactory before you spend time listening to their pitch. Some suggested ways to minimize the risk of getting a bad vendor are follow.

First, as has already been stated, do some research. Browse the Internet for reviews or customer experiences with certain vendors. Contact friends in the construction industry for recommendations. Check with the Better Business Bureau for records of complaints. Finally, look in financial newspapers, trade publications, and even online communities for news or construction software guides that will help in your selection of a vendor.

When doing your research, be aware of “red flags” that should immediately turn you away from a specific product. Check to see if they’ve been sued in the past for failing to perform up to par or being deceptive. Make sure the software package that the vendor is offering has been kept up to date with current technology and practices that your company uses or plans to use. Also, it’s important to check the company’s history for previos takeovers or buyouts. While these can be beneficial things, you’ll want to look in to what changes were made after the takeover to verify that they were changes that solved previous problems – and make sure you can verify these problems have been solved through reviews and other sources.

On the other hand, keep your eyes open for green flags! If the software or the vendor have received awards or have been cited for community or public involvement, these are usually good signs. Or you may have a friend or trusted colleague who recommends a specific software package or vendor.

Also, look at the history of the product. How often are new versions and updates made available? Where do you fit in when an update is available? Does the company have a history of making consistent improvements to their software? If so, this is probably a good sign of a vendor that will be there to help when you need them.

When it comes time to make the final decision, do not compromise with yourself. Remember that you will be the one that has to live with the final decision and that it will be costly to change your mind and start over. You are paying vendors for their service and you should insist on nothing less than the best. Check construction software reviews for reviews of vendors that have performed well in the past. If you feel like you’re being taken for a fool, don’t be afraid to let the vendor know what your concerns are and walk away if you have to. The alternative, getting a poor product with poor service will be a problem that you suffer the consequences of for years to come.