Accelerate Your Construction Software Implementation by Learning From Buyers With Experience

With construction projects becoming more complex, traditional project management methods are falling short due to their inflexibility and limited functionalities. Construction managers need a solution to increase efficiency, accuracy, and productivity across all phases of a project. Fortunately, several intelligent construction software tools are available in the market that can help them streamline daily operations.

Construction software offers real-time project tracking and predictive analytics capabilities. These solutions automate project planning, designing, resource allocation, and risk forecasting. However, to make the right purchase, it is crucial to know the features needed, the average software price, and common challenges faced while purchasing construction software.

Each year, Software Advice's advisors speak with thousands of software buyers evaluating new construction software for their businesses. We've pulled insights from those conversations that will help small businesses understand the budget requirements, features, and pain points of current users to find the best tool for their needs.

Prospective buyers and current users prioritize different features

We analyzed thousands of construction software reviews available on Software Advice to identify the features that software users consider most critical for their business. Our findings revealed a gap between what software buyers and users prioritize.

• Twenty-nine percent of current software users rate mobile access as the most important feature in construction software compared to buyers who are mostly looking for an estimating feature.

• These findings indicate that businesses already using construction software consider mobile access a critical functionality. This feature helps construction professionals to access real-time data, collaborate, and improve productivity. Mobile apps facilitate informed decision-making, enhance safety, and streamline workflows. By providing on-the-go access to project information, mobile access contributes to efficient resource management, reduced errors, and improved customer satisfaction.

• On the other hand, construction estimating allows businesses to accurately forecast project costs, allocate budgets, and make informed financial decisions. It helps identify potential cost overruns early, enabling proactive adjustments to keep projects within budget.

Current pain points for construction software buyers

When our advisors asked buyers what methods they were currently using to handle their day-to-day construction operations, here's what they found:

• Around 45% of buyers use manual methods, such as pen-and-paper and spreadsheets, for their day-to-day operations.

• While 30% of buyers use third-party tools, such as accounting and billing platforms, around 12% do not have a system in place to automate their construction management workflows.

These discussions shed light on businesses' real-life challenges with their existing methods. These included inefficiency (57%), limited functionality (22%), and affordability (7%).

• Inefficiency: Manual construction management methods are time-consuming, error-prone, and costly. Tracking progress, managing schedules, and coordinating resources manually leads to delays, miscommunication, and increased labor costs. Without automation, construction managers spend excessive time on administrative tasks rather than focusing on strategic decision-making. Similarly, third-party tools often lack advanced features, such as profitability tracking and forecasting, forcing construction managers to juggle multiple tools, leading to operational inefficiency.

• Limited functionality: Manual methods and third-party tools often lack integrated features for project management, cost estimation, resource allocation, and communication, hindering a construction manager's ability to plan, execute, and monitor projects. Without real-time data tracking, automated reporting, and centralized documentation, managers may struggle to maintain accuracy, leading to errors and oversight.

• Unaffordability: While the initial investment in construction software might seem high, relying on manual methods can lead to hidden costs in the long run. For instance, inaccurate cost estimations and resource mismanagement due to manual methods can result in budget overruns, delays, and potential project failures. Similarly, investing in multiple third-party tools is more expensive than the cost of consolidated software.

Reasons for switching to a dedicated construction software

Compared to the existing methods used by professionals, a dedicated construction software solution offers the following benefits:

• Enhanced project management: Construction software offers a consolidated solution for project management, from initial planning to final execution. It enables managers to create detailed timelines, set milestones, and track progress in real-time. This real-time tracking ensures that any deviations from the schedule are promptly identified and addressed, minimizing delays and keeping the project on track. The software's advanced risk management features help identify potential risks early, allowing managers to develop mitigation strategies and minimize the impact of unforeseen issues. Additionally, quality control features ensure that all work meets required standards and specifications, further enhancing project outcomes.

• Improved operational accuracy: Construction software automates various manual processes, reducing the likelihood of human errors and improving operational accuracy. For example, cost estimation tools provide precise calculations, ensuring financial control. Automated data entry and real-time updates minimize the risk of errors, leading to more reliable and consistent data. By reducing errors and improving the accuracy of critical operations, construction software helps businesses avoid costly mistakes, enhance project quality, and ensure compliance with industry standards.

• Better collaboration and communication: Construction software provides a centralized real-time collaboration, communication, and task management platform. Integrated communication tools simplify interactions between project managers, team members, clients, and subcontractors, fostering transparency and ensuring everyone is on the same page. Task management features allow for the easy assignment and tracking of tasks, ensuring that responsibilities and deadlines are clearly defined and adhered to. By enhancing collaboration and communication, construction software helps create a more cohesive and efficient project team, ultimately leading to better project outcomes.

Average budget for construction software buyers across industries

The budget for purchasing construction software varies from one industry to another based on the software's functionality, number of users, projects, deployment model, and integration requirements. However, the average budget across industries for purchasing construction software was approximately $262 per user, per month. 

The chart below highlights the average buyer budget per user, per month for the top five industries interested in construction software.

Use cases for construction software

Based on our advisors’ interactions, these are the top industries using a construction tool for different use cases:

• Electrical/teledata businesses involved in designing, installing, and maintaining electrical systems and telecommunications infrastructure need construction software to coordinate multiple small-scale jobs. They usually look for real-time project tracking, automated scheduling, and resource allocation features to ensure timely task completion and optimal resource utilization.

• General contractors oversee large-scale construction projects, coordinating multiple subcontractors and trades. They need construction software to manage project schedules, budgets, and resources, facilitate collaboration among teams and stakeholders, and maintain compliance with regulations and safety standards. Key features they seek include project management tools with integrated scheduling and resource planning, document management and collaboration capabilities, real-time reporting and analytics for informed decision-making, and mobile access to keep field teams connected and updated.

• Finishing contractors specialize in the final stages of construction, such as painting, flooring, and cabinetry. They need software to manage small- to medium-sized projects, track schedules and budgets, communicate with clients and subcontractors, manage material orders and inventory, and generate invoices and estimates. They seek scheduling and budgeting features, contact management and communication tools, inventory management capabilities, and customizable invoicing and estimating templates.

• Home builders construct custom homes, overseeing the entire process from design to completion. They need construction software to manage project schedules, budgets, and resource allocation, collaborate with architects, engineers, and subcontractors, manage material orders and inventory, and generate sales contracts and invoices. Therefore, they consider comprehensive project management, integrated scheduling and resource management, design collaboration features, inventory management capabilities, and sales and marketing tools.

• Residential modelers create detailed 3D models of residential projects. They need software to collaborate with architects, engineers, and clients, generate construction documents and specifications, estimate material costs and labor requirements, visualize design options, and make changes. For them, a construction management solution should have 3D modeling capabilities, design collaboration features, construction documentation generation, cost estimating tools, and virtual reality capabilities.