Leveraging ERP to Power Construction Productivity


In India, real estate construction projects face frequent delays in completion due to the absence of standardization and workflow automation on the part of the developers.

Without a robust process in place, several aspects of construction including process management, material procurement, sourcing, planning and budgeting, resource planning finance, vendor management, and billing are negatively affected by the inefficiency, lack of standardization, and high opacity of price.

Overall, the real estate sector is facing reduced productivity, and excessive construction outlays because of:

  • Poor organization
  • Inadequate communication processes
  • Flawed performance management
  • Poor short-term planning
  • Lack of organised workflows

Given the fact that all these above-stated issues are systemic, severe, and all too common, real estate developers need an immediate project management solution, in the form of a domain focussed construction ERP software.

A Proptech software can help developers automate real estate & construction workflows to reduce costs, provide greater transparency and make their business more cost and time efficient. An ERP (Enterprise Resource Planning) software helps developers keep a tab on the physical and financial progress of their projects in real time by automating the project workflows.

Thus, developers can minimize manual intervention in different project stages and processes such as pre-construction planning, material procurement, and billing through automation, creating more robust, streamlined and faster processes and workflows.


With a construction ERP software in place, real estate developers can compile an all-inclusive list of associated project costs to further plan operations such as construction cost estimation, contract tendering and resource planning.

Once the architectural design is completed, the software can help identify and develop execution strategies for budgeting, procurement and sourcing, tendering, vendor management and post award controls like material management, daily progress tracking, reporting and invoicing. The software also allows shared access to project data and key performance indicators such as schedule variance, cost variance, and cash flowanytime anywhere across verticals.

Budgeting and Cost Planning

The construction ERP software enables real estate developers to prepare itemized Bill of Quantity (BOQ) with the help of millions of line items from the database.

Each of these database line items has a detailed rate analysis associated with it, which is used together with resource planning data to calculate cost estimates of overheads and prelims. A BOQ helps in detailed material estimation in terms of quality and quantity which aids in the tendering process by giving a complete picture of the contractors scope of work.

As a result, real estate developers can significantly reduce the project costs and other related expenditures by creating a low risk tendering environment which encourages the submission of competitive bids.

Vendor and Inventory management

Having an ERP software in place allows real estate developers to automate their sourcing strategy and manage multiple contractors and vendors on one single automated interface. In other words, developers can easily define their work package sourcing and procurement strategy, starting with vendor pre-qualification till vendor recommendation and award.

The software enables developers to have complete control over the access of project data, by implementing custom roles and permissions thus allowing only the intended audience to view the relevant data. With the help of customised dashboards, multiple projects can be managed along with real-time progress tracking.

With an end to end ERP software, real estate developers can gain complete control of their project. The software comprises various predefined modules that cover all aspects of the project, from pre- construction to closeout.

Having an end to end construction ERP software; therefore, allows real estate developers to:

  • Perform construction cost estimation and monitor the project’s cost, scope and time to completion through a consolidated process management platform
  • Access and share project information in real-time with all stakeholders
  • Encourage collaborative working between different project teams
  • Increase efficiency by standardizing execution methodologies and project strategies.
  • Leverage technology to enable efficient scalability of operations and increase productivity
  • Predict the project’s cost to completion and delivery timelines through automated earned
    value analysis

With increasing project cost overruns and uncertain time to completion, real estate developers are now focusing on adoption of technologies to improve their efficiency, reduce costs and provide contemporary real estate solutions to their clients.

With construction ERP solutions, developers can create custom-built dashboards with data analytics and data visualization functionalities, to help them make accurate cost estimations and record daily progress.

There are many ERP system software available in the market today. However, not all of them are meeting the specific demands of each industry. Therefore, real estate companies should opt for domain centric ERP softwares offering customization options according to their needs.

The key to selecting ERP software for any business is shortlisting a platform that offers seamless working across various devices and provides increased security. Looking ahead, the number of devices that will be synced with ERP software is only going to increase; therefore, choosing a platform that offers optimal solutions and customizable options is necessary.



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