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