| Contractors that also manufacture some of the | | | | information so they can promise a delivery date |
| products that they install are not too out of the | | | | to customers. |
| ordinary these days. Both sides of their business | | | | Construction accounting is much different and |
| require estimates and quotes for projects and it | | | | breaks projects down completely differently. |
| makes sense to desire one piece of software | | | | Revenues and costs are viewed as percentages |
| capable of performing these tasks for both the | | | | in relation to the complete job. Many contractors |
| construction and manufacturing side of the | | | | will not record a cost until he pays an invoice, |
| business. If your company is both a contractor | | | | even if the services or materials have already |
| and manufacturer, such as a custom cabinet | | | | been delivered or used. Contractors concern |
| maker, and you are looking to integrate both | | | | themselves with the cost of the project to date |
| sides of your business with one piece of | | | | in relation to the total budget for the project in |
| software, prepare yourself for some bad news. | | | | terms of overages and underages. These cost |
| When looking for a new software solution, finding | | | | breakdowns are not possible or useful in a |
| a piece of construction software that covers both | | | | manufacturing setting. |
| sides of the business is the ideal. Unfortunately, | | | | Capturing costs in real-time is only possible with |
| finding software that can run both aspects of the | | | | the right construction software and the right |
| business is difficult. Although both manufacturing | | | | supporting processes. A good software package |
| and construction involve job cost, there are a | | | | will give users the ability to track jobs in a linear |
| number of issues that arise that make finding a | | | | fashion as the job moves along. |
| perfect software solution unlikely. | | | | Construction companies (or parts of companies) |
| To begin with, construction and manufacturing | | | | also have to deal with issues that arise from |
| have different sets of constraints when it comes | | | | managing the project, many of which do not |
| to scheduling jobs. Manufacturing companies (or | | | | occur or are not relevant in a manufacturing |
| parts of companies) deal with machines and | | | | environment. For example, manufacturers are not |
| individuals in job shops. These shops often have | | | | concerned about tracking things like record |
| to rush jobs in the cue that arise unexpectedly | | | | retainage for jobs and progress billing, but |
| but nonetheless need to be completed as soon as | | | | construction companies are. |
| possible. The software used, therefore, has to | | | | Lastly, quoting for manufacturing projects involves |
| have the ability to reflect how these rush jobs | | | | things like bills of materials that are not tracked in |
| impact other jobs. Construction, on the other | | | | construction jobs. |
| hand, rarely deals with sudden changes and | | | | The bottom line is that, although some companies |
| although lead times are often much longer, a new | | | | are both contractors and manufacturers, one |
| challenge arises in dealing with numerous other | | | | piece of software is not going to be able to be |
| variables, such as subcontracting. | | | | used for both sides of the business. As nice as it |
| Cost accounting is also different for construction | | | | would be, the two operations differ so |
| and manufacturing. Manufacturing views work in | | | | dramatically in terms of "relevant information" that |
| process costs as the job moves from one work | | | | even if software existed capable of serving both |
| center to another. All work in process jobs are | | | | sides of a business, chances are it would be far |
| recorded on the balance sheet as assets until | | | | too arduous to use. As a result, you will need to |
| they are shipped out which results in inventory | | | | invest in separate manufacturing and construction |
| costs changing as jobs progress. Further, | | | | software packages. |
| manufacturers are concerned with job progress | | | | |