ERP Implementation Best Practices to Reduce Construction Business Risk and Costs

Implementing a new ERP system provides many opportunities to transform your construction company digitally. In addition to leaving behind your legacy system’s limited functionality or outdated technology.

You can also leverage modern ERP system capabilities to help unlock new opportunities for your construction business. 

However, successful implementation of the ERP for construction industry is not always the case. So, how can you set your construction firm up for a smooth ERP implementation and avoid unnecessary costs and risks.

In this article, we have compiled some best practices that can aid in avoiding common pitfalls and reaping the benefits of successful ERP implementation more quickly.

Choose a Software and Services Partner

Your in-house construction project team might not be experienced enough to implement ERP software successfully. You should consider researching and selecting a qualified ERP implementation consultant resource with intimate knowledge and experience in using the ERP software you will install. Confirm whether the service provider understands how the new ERP software can support your company’s current and evolving business process.  

Furthermore, review the project management software that the company uses to know if it’s compatible with your internal planning, scheduling, and tracking system. 

Detail all Project Tasks 

Your construction company’s implementation partner can help you develop a detailed list of all tasks you need to perform to implement an ERP system. These tasks include the project team, business user, IT team, and ongoing training. 

It’s better to dive the list of tasks into phases. Moreover, allocate time for the conference room pilot, integration of the ERP to other applications and data sources, data cleansing, infrastructure implementation, user acceptance, and so on. 

Calculate Work Hours

 Accurately estimate the amount of time it can take to complete each task. First, understand the tasks and work involved in them. Next, assign the number of ‘work hours’ each task can require. You can assign a range of hours, but ensure it is accurate. Add up the work hours required for each phase and assign the employee responsible for completing the project.

Create a Realistic Schedule

Once you are done tabulating the work hours available and required, you must create a manageable schedule. The first pass can sometimes reveal a capacity problem by comparing it to the construction ERP implementation timeframe initially presented to the executives.  

If the go-live timeframe is missed before the project begins, your construction company can opt for these possible solutions:

• Reduce the scope 
• Extend the date to a realistic one
• Break the implementation project into phases
• Add more internal and external resources

Conduct a Conference Room Pilot

Once you have started with the ERP implementation project, and before you go live, consider conducting a test run or a pilot. The conference room pilot will ensure proper business processes are in place for the construction company’s current and future needs. Also, if your processes don’t work as expected, you can make cost-effective adjustments to refine your operations.

When designing your new processes, you must understand the options available in your construction-specific ERP software. In addition, don’t forget to validate your new business processes with your project team and key stakeholders from the user community.  

Cleanse Your Data

Even though many think of data cleansing as a simple task, it is time-consuming. Construction companies must start assessing their data accuracy as quickly as possible, as it can take great effort to complete the task correctly. Moreover, during the project, your business processes can change. So, you need to be prepared for additional data management steps when implementing the construction ERP system. 

Keep Everybody Informed

Your staff should regularly contact all important stakeholders to let them know the positives or ‘not so positives’ of the ERP implementation project’s progress. You don’t want to surprise your key stakeholders by not keeping them up to date and experiencing the risk of losses. 

Concluding Thoughts!

In every Solar ERP Software implementation project, you will likely experience unexpected issues. But by following the above-discussed practices, you can implement your ERP system successfully. These steps will help you identify unexpected issues beforehand and address them quickly to manage your construction business risks and costs effectively. So, leverage the benefits of a properly implemented construction ERP system by streamlining operations, maximizing efficiency, and capitalizing on the growing opportunities in the construction industry. 

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