CONSTRUCTION PROJECT MANAGEMENT & SCHEDULING BUYERS GUIDE


CONTENTS

I. Intro to Project Management Software 
II. Software Advantages
III. Upgrading your Toolbox
IV. Evaluating Software
  a. Getting started
  b. Document Control
  c. Change Order Management
  d. Project Calendar Management
  e. Budget Management
  f. Subcontractor/Vendor Management
  g. Resource Management
  h. Reporting and Analysis
  i. Vendor Selection
VII. Implementing Software

Evaluating Software: Purchasing Construction Project Management Software


Budget management

Budgeting is closely linked to reporting and job costing, and you'll want to make sure that any budgeting capabilities in your project management software can be easily implemented into your existing job costing and reporting software tools. Although it's far more desirable to have all applications working from the same data set, at the very least document formats should permit you to import information without re-entering data.

You should also ask your vendor about the ability to lock in key budget items. Does the software allow you to prevent changes to the original estimate, at minimum? Even better, can you make changes to estimates, but track the changes so that management can see how the costs have changed as the project progresses?

Next, consider the software's ability to calculate earned revenue. This is probably the biggest pitfall for contractors, and therefore generally the most important feature of project management budgeting capabilities. All too often, Brown said, billing is equated with revenue, a dangerous mistake.

"Billing is not revenue, and if you continue to make that mistake you will go out of business," states Brown. Accurately determining earned revenue is critical, and it's a function that Brown says many project management tools don't handle well. You'll want to ensure that this function performs to the satisfaction of your accounting department before making a choice.

Next: Subcontractor/Vendor Management