There are hundreds of thousands of construction firms in the world, ranging from one-man remodeling shops to multibillion-dollar multinationals; as such, it is not surprising that the construction software adoption rate among those countless firms varies tremendously. Some firms, especially those managing thousands of projects, have been using construction software for decades. Others have more recently installed construction software and are just beginning to reap the benefits. Others still, for a variety of reasons, have yet to integrate construction software into their everyday processes.

This is the first in a series of articles that will help that last category of contractors to understand what construction software is and what it can do for them.

A. What is construction software?

Construction software is a collection of programs, processes and information that is designed to help contractors handle a large quantity of data, manage a diverse workforce, and maintain data security, all while complying with union, government and industry regulations. By implementing construction software, users are able to save time and money, complete tasks with more confidence and accuracy, keep a competitive edge in the construction industry, and prepare for future growth.

There are three main types of construction software -- estimating, job cost accounting and project management and scheduling.

Firms use construction estimating software to determine the costs of potential projects and prepare bids. Construction job cost accounting software, meanwhile, is used to track project costs through modules such as accounts payable/receivable, payroll and construction ERP (enterprise resource planning). Lastly, construction project management software uses timelines, schedules, audit trails and workflows to help firms manage all aspects of a construction project.

B. What can construction software do?

Using construction-specific software instead of generic software can benefit a company in several ways. Many are listed in an article on Entrepreneur.com called Benefits of Construction-Specific Software. Here we offer three.

1. Generic software doesn’t always enable its users to see which jobs are profitable and which aren't. By using a construction-specific software packages contractors are able to see what things they could improve upon and what things they are doing well.
2. With construction software, contractors can track projects from the bid stage to completion with all the management details -- change and purchase orders, subcontractor information, etc. -- in one spot.
3. Most construction software packages are single-entry integrated. This means that, when you enter data into one module, such as estimating, the information with automatically flow to other modules such as production or job costing.

C. How can you find the right construction software program?

With so many different categories of construction software and so many different vendors, it is not surprising that many contractors have a hard time choosing which software to use. Dion Langness of Software Consultants came up with five steps for choosing the right construction software:

1. Identify your company's goals and resources. Who is going to lead the process of choosing software? Who else will be involved?
2. Ask yourselves why your company needs construction software. Once you determine why your company needs the software, you can start targeting software that fits your needs.
3. Decide how much time and money your company can, and is willing to, pay.
4. Start looking for a solution. Ask other companies like yours what solutions they are using and try to see what solutions your competitors are using. Once you have a list of vendor solutions, start calling those vendors and give them a list of things you're looking for in a solution -- and make sure to ask for demos of their products.
5. Train your employees. This has a twofold effect -- employees will know how to use the construction software properly, and they will know be made aware of the benefits of using the software.

D. Additional resources

The following pages on ConstructionSoftwareReview.com should provide some additional insight into the best ways to start learning about construction software tools and deciding what software might be right for you.

• Five steps to choosing the right construction software
• On making the leap to specialized construction software
• On using case studies to learn about construction software