Web-based Construction Management Software

Web-based project management systems are changing the way architecture, engineering and construction (AEC) firms collaborate. By sharing critical documents, schedules, and logs over the Internet, efficiency and accountability is improving dramatically. Web-based systems provide a centralized repository to store and manage RFIs, change orders and submittals. Additionally, they give stakeholders a single view of the status of all projects, as well as budgets and spending across those projects.

Here’s what we’ll cover:

What is Online Construction Management Software?
What Type of Buyer Are You?
The Software Buyer Landscape

Market Trends to Understand
Benefits & Potential Issues

What is Online Construction Management Software?

Online construction software streamlines communication among project managers and subcontractors, enforcing accountability and allowing managers to take action on problems as they arise. These systems will be designed for the construction industry, containing all the terminology used by AECs and ensuring regulatory compliance, document control, inventory, scheduling, project management, customer relationship management, and/or budgeting specifically for this industry.

What distinguishes a top online construction management software from an on-premise system is that the program will be hosted entirely by the software vendor. Rather than buying and installing the software on the contractor’s computer (or multiple computers), software-as-a-service (Saas), users pay a monthly or annual fee, effectively leasing the software. The benefit of this is reduced upfront costs, less maintenance, and the ability to access the information from anywhere with a Web browser.

What Type of Buyer Are You?

When selecting a system, contractors need to consider what modules or functionality they need. There are a lot of systems that focus on one core feature: for example, project management, construction accounting, project estimating, or customer relationship management. Other programs offer a full-suite, or integrated, solution, combining some or all of these features. Although these systems may come with a higher price-tag, they offer tighter integration between the various departments and will be less expensive and more efficient than using multiple different programs for each type of application.

Before looking at the details of various systems, identify yourself with one of the buyer types outlined below. Most buyers fall into one of these groups:

• General contractors. These buyers are looking for robust functionality that will support bid solicitation, budgeting, document management, inventory, scheduling/deployment of subcontractors, and even accounting capabilities.

• Speciality & subcontractors.  Since these buyers specialize in a particular market and perform the hands-on work, they need to focus on a niche area, as well as maximizing crew performance and minimizing liability. This requires good scheduling functionality and document control.

• Estimators. Estimating software focuses less on project management and scheduling and more on the cost and inventory features associated with this type of software. For a web-based solution it will enable sharing of content and research to ensure accuracy in bidding.

• Accountants & office managers. The folks in the office of the construction company, if they’re not looking for a full-suite product to cover all elements of construction management, will want a separate solution that provides accounting and office management capabilities without extra features that cost more and clutter up the interface. These programs will have inventory and ledger control specifically designed for construction projects.

• Customer relationship managers. This includes anyone working in sales, marketing, and customer service, who want a CRM solution to manage client relationships. There are CRM programs dedicated specifically to the construction industry, tracking new and potential projects and nurturing relationships for long-term business growth.

The Software Vendor Landscape

Although the following list oversimplifies the buying process, the top-rated programs indicated, in general, will be good SaaS programs for the specific type of buyer.  

Market Trends to Understand

These market trends should be considered as you select a software product and vendor.

• Mobile applications. Contractors spend most of their time in the field, requiring managers be able to connect to their software remotely. Between that and the popularity of smartphones and tablet devices, demand is huge and rising for mobile apps that integrate with construction management software. Web-based programs will usually have stronger capabilities in this area, but it’s still important to pay attention to the mobile apps available and platforms supported when selecting your product.

• LEED tracking. Leadership in Energy & Environmental Design (LEED) certification is growing in popularity, but requires diligent tracking before, during, and after construction. For that reason, more and more systems are offering LEED tracking applications. These automate detailed tracking of points required to achieve certification. Firms that will be building LEED projects should carefully evaluate the LEED tracking capabilities of the software products they consider.

Online construction management software offers a number of benefits over traditional locally-installed software. For example:

• Better data accessibility. Contractors deal with all sorts of data: bid proposals, inventory, time tracking, costs, revenues, subcontractors, customer profiles, project status, and the list goes on. Having a web-based construction management tool allows the user to access this data from anywhere, ensuring it’s always entered immediately and accessible whenever necessary.

• Improved collaboration. A web-based system allows project participants to work together closely. From initial bid through execution and follow-up, users can review and mark-up plans and proposals and connect bid estimates and project time tracking to management, accounting, and other departments.

• Cost amortization. Compared to an on-site software solution, a web-based construction management program will be far less expensive in terms of up-front costs. SaaS also eliminates the need for an IT infrastructure to manage upgrades and to get the product up and running when problems arise.

Since SaaS programs charge a monthly or annual fee, there is the potential that the user will pay more in the long run than they will for an on-site solution. However, this tends to be the case only for larger companies with bigger budgets and dedicated IT personnel.

Another important consideration when purchasing any kind of construction management system is the implementation plan. Every user will need to be trained on the product, and often the adoption may be met with some kind of resistance from people who are comfortable doing things the old way. Therefore, it’s valuable to get horizontal and vertical buy-in among peers, executives, and field users, making sure they can all see the benefits of the software and get excited about using it.

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