| Trading up from a small business bookkeeping | | | | management. A new CFO or Controller may |
| package to a full construction system is going to | | | | recognize the need for better information |
| ask a lot from you in terms of time and expense. | | | | systems and may even have been brought in for |
| The issue comes down to: do you want to go | | | | that purpose. Is your company growing? Growing |
| from simply recording job data into your | | | | companies will stretch and eventually break the |
| accounting system or do you want to proactively | | | | boundaries of a small business package in terms |
| manage jobs, deadlines, and costs using software | | | | of transaction volumes and functionality. A classic |
| specifically designed for your industry? Here are | | | | example is the need for integrated project |
| some questions to ponder before you take the | | | | management and document control. What needs |
| leap. In addition to the capital expenditure required | | | | to be in place for you to manage the |
| to purchase mid-market construction software, | | | | performance of your projects? Finally, and |
| are you committed to providing the resources | | | | perhaps most important for many, is the surety |
| required to be properly trained on the new | | | | issue for performance bonds. Surety coverage |
| software? That means spending the money and | | | | demands detailed metrics for job costs and job |
| having staff who have the right attitude and skills | | | | progress. In many cases, this type of detail simply |
| to learn the new system. Furthermore, are you | | | | cannot be provided without a robust industry |
| committed to getting all the requisite job | | | | package. How much can you justify spending? |
| information into the system to give you the | | | | Some metrics suggest that you can afford 2-3% |
| output needed to better manage your jobs? | | | | of net revenues. But if you are struggling to |
| What is driving your initial interest in construction | | | | manage your business due to the lack of |
| software? Is just because you think you need it? | | | | real-time information, you may be able to justify |
| Or do you have job experiences that went bad | | | | more. How will you find the most appropriate |
| because you did not track your estimated costs | | | | options? If you surf the Web you may identify |
| to your committed costs? Or have you just been | | | | dozens of products that look like they might work |
| lucky so far? Does your current job costing | | | | for you. You now have a two step challenge; |
| system not recognize costs at the time of | | | | identifying who to put on your shortlist and then |
| commitment but only when you receive the bills | | | | making a final choice between them. This is not a |
| or when you pay your labor? How do you handle | | | | simple task. Often, users actually become more |
| your Progress Billings? Do you create your | | | | confused as they go through their research |
| Progress Billings separately from your accounting | | | | instead of less due to all the claims and |
| system? Where do you maintain your schedule of | | | | counterclaims of competing vendors. That means |
| values? What system do you have in place to | | | | you need someone on staff that has the time to |
| ensure that all costs incurred are actually billed? | | | | invest and knows how to navigate the muddy |
| What type of job purchasing controls are in place | | | | waters. Who is in charge of the search? |
| to ensure that committed costs do not deviate | | | | Sometimes the person tasked to find the new |
| from your estimated costs? Is your purchase | | | | system may be selected simply because they are |
| order and subcontract system allowing you to job | | | | the most convenient, least cost choice. A |
| cost at the time of commitment? How does your | | | | bookkeeper/accountant or office manager usually |
| estimating process work? Is it all spreadsheet | | | | does not have the breath of experience to handle |
| based and very specialized? Do you have a handle | | | | a major project like software evaluation and |
| on tracking estimating costs and revisions against | | | | selection. The best choice to lead the project is |
| your job ledger? Where do you store all of your | | | | someone who understands all the operational and |
| job file information and documents? Do you see | | | | accounting aspects of the business, has strong |
| any advantage in maintaining all of this in a | | | | communication skills and who has the full |
| construction software package? What is your | | | | confidence of the decision makers. |
| litigation exposure for incomplete job files? Has | | | | Sheldon Needle is President of and helps |
| new management been added? One of the key | | | | construction companies make smart technology |
| drivers for seeking out new software is new | | | | decisions. |