What is construction management software?

What is construction management software? How is it different from project management software or ERP systems? Here are a few questions that often come up when discussing with people about the construction management software. Let’s dive deeper into the topic.

First, it’s important to make the terms familiar:

Construction management software is software designed for the construction business. The features can vary, but most often the construction management software provides tools e.g. portfolio and project management, communication, reporting, financials, and procurement. It allows you to work together with different teams and company functions during the whole life cycle of your projects. A few examples are Builderhead, Procore, Archdesk.

Project management software as the name implies are primarily intended for project management. They help you take care of tasks, schedules, and project-related communication. A few examples are Monday.com, Asana, and Smartsheet.

An ERP system is wide software that brings together different functions and processes. ERP is a general term, for example, construction management software can be considered as an ERP.

Project management software benefits

Most of the project management software are generic. They offer a great set of tools for multiple industries and can be used for any kind of project. As these tools are not specifically designed for construction project business they can lack important features and you might need to spend time to customize them for your business or in the worst case create a new process that doesn’t fit your business.

However, project management software is typically easy-to-use and has many important features for project management. They often also offer comprehensive integrations.

If you are looking simple tool just for project management and don’t mind customization, these tools might be right for you. If you want something specifically for construction project management, keep reading.

When should you invest in construction management software?

Business growth is often the top reason for the usage of construction management software. As your business grows you need to keep your processes and project management in order.

With construction management software you will be able to build scaling processes without team silos, manage every construction project from start to finish, and make sure that you are doing everything within the budget.

The only downside is that construction management software is often a bit heavier than simple project management software, especially if the software provides a wide range of tools. If you are planning to get construction management software make sure you pick software that is easy to use and scales as your business grows. 

How much does construction management software cost?

Construction management software and ERP systems designed for the industry are often a bit more expensive than project management software. However, don’t get fooled by the pricing.

The pricing for project management software is often based on the number of users. Monthly prices typically start from 10 euros, however, if the intention is to allow the entire organization and partners to access the software, the price can quickly get expensive. Tip: So don’t just look at the price of an individual user.

Pricing for construction management software is often tied to features and project volume. In this case, the organization pays a higher monthly fee, but new users don’t increase costs and allow collaboration with a wider group. The monthly fee for such software is often up to a few hundred euros per month.

Both kinds of software serve their users from their perspective. The key is to find the tools you need to streamline both your own and your organization’s operations.

Builderhead team

Written by

Toni Martikainen

Toni wants to help construction companies take advantage of the opportunities brought by digitalization. He is interested in understanding how the industry works and is always ready to talk about technologies in the industry.

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