Construction Business Software

Construction software is an umbrella term that refers to a class of applications that help firms manage everything from materials takeoff and estimating to job costing and project management.

With over 200 solutions on the market, construction software is one of the most complex (and fragmented) markets we cover. We wrote this guide to help you understand the various industry applications -- and how they can improve your business.

Here's what we'll cover:

• Application Categories & Benefits
• Common Buying Scenarios
• Trends Impacting this Market
• The Vendor Landscape

Which Applications Do You Need?

Construction software applications map to the processes required to take a project from initial plans to completion. In the table below, we profile the most common applications--and how they are useful--to help you decide which applications you need.

Common Buyers Scenarios

To help you narrow the field, we present five common buyer goals below. One or more of these goals might align with your needs. Keep these in mind as you read and evaluate construction software reviews.

1. You want to consolidate multiple applications.
If you’re using construction management solutions from multiple different providers and are frustrated by the lack of integration, you should evaluate integrated construction suites. Large companies will want to go with enterprise-level providers such as Oracle or SAP. Meanwhile, mid-sized companies should look at systems like Foundation for Windows, Sage Master Builder Software or ComputerEase because they offer robust core functionality with a variety of add-on modules.

2. You need to boost efficiency in one area (e.g., estimating).
If you consistently have issues with one aspect of your business, you’ll want to look at vendors that offer standalone, or “best of breed” applications so you don’t pay for more functionality than you need. Because these applications are best of breed, they also tend to have deeper functionality than what’s offered in suites.

Buyers often ask us about standalone estimating and project management applications, in particular. If you’re in the market for an estimating application, two of the premier vendors to consider are ProEst and Maxwell. See our buyer’s guide on cost estimating for a more thorough breakdown of this market.

Meanwhile, we frequently recommend Paskr and Procore to buyers that need a standalone project management application. These vendors are laser-focused on this need and have experience serving a variety of specialities. Refer to our project management buyer’s guide to better understand this market.

3. You’re a specialty firm that needs a unique system.
Many specialty firms will find that modules in general software for construction doesn't adequately fit their needs. For example, an estimator for an electrical contractor might require a highly specialized electrical estimating system to adequately estimate voltage drops and the number of conduit boxes needed. Some of our more popular specialty buyer’s guides address the electrical, concrete and heavy/highway trades.

4. You’re having difficulty adapting a general accounting package.
If you find yourself frustrated by having to adapt a general accounting package to accommodate your payroll, subcontracting and job costing needs then it’s time to move to a construction-specific accounting program. Large and medium-sized firms should evaluate Viewpoint V6 and Sage 300 Construction and Real Estate (formerly Sage Timberline Office). Meanwhile, small firms upgrading from an entry-level package such as Quickbooks or Peachtree should evaluate ComputerEase, FOUNDATION for Windows, Maxwell ProContractorMX and Construction Partner.

5. You’re looking to get off pen and paper.
For your first construction company software purchase, it’s important to choose a system that can serve your needs now and into the future. To that end, you’ll want to choose a system that can expand with your business. We find that small firms should start with a lightweight and affordable system that can automate some of your processes right away. A few products to consider in this scenario are Sage 100 (formerly Master Builder), Jonas Construction Software, and Plus Series by Contractor Software Group.

Of course, there are other factors to consider in addition to these buying scenarios. A few things that will influence which vendor offers the best construction software for your business are the size of your business, your trade specialization, and your availability of IT resources and expertise.

Market Trends

A number of trends are worth noting as you evaluate systems:

• Software as a Service (SaaS). SaaS--a deployment model in which applications are hosted by the vendor and accessed via a Web browser--is slowly gaining in popularity within the industry. The most common SaaS, or Cloud, applications focus on project management. SaaS is less common in accounting and estimating. Buyers looking for new project management applications should definitely evaluate SaaS offerings.
• Vendor Consolidation. Larger construction management software vendors such as Constellation, Sage and Maxwell Systems continue to acquire smaller vendors. While these vendors have continued to extend and support acquired products, buyers will generally want to work with consolidators rather than those vendors likely to be acquired. Buyers should carefully assess vendor viability and corporate strategy.
• Mobile platforms and capabilities. Mobile platforms--and the systems that run on them--are improving all the time. This is an important development in this market as many contractors and workers stand to benefit from having access to their project information while in the field. If this is an important feature for you, make sure the vendor’s construction solution is compatible with mobile devices.

Construction Software Market Breakdown

As mentioned earlier, construction business software is a fractured market with a wide range of vendors and pricing models. Below, we’ve created a rough map of the vendor landscape.

Have an opinion on this guide? Email the authors. We appreciate the feedback.