A TO Z of

construction
software

brought to yoU by
www.levesys.com

This guide has been compiled based

on feedback from 96 Australian
construction, engineering and
service contractor companies to
assist others from their industries
in choosing a software and
services provider for maximised,
long-term return on investment.
Each page contains information
on a topic that the 96 companies
felt was important.

aUSTRALIAN MADE

BUSINESS PROCESSES

COST/BENEFIT RATIO

DOCUMENT MANAGEMENT

eRP

fINANCIAL & PROJECT MANAGEMENT

GOOD GOVERNANCE

helpdesk

iNFORMATION SECURITY

JOB FORECASTING

kNOWLEDGE BASE

LEGISLATION

MILESTONE SCHEDULES

nETWORKS

ONGOING DEVELOPMENT

pAYROLL

QUALITY

reporting

support

training

USER-FRIENDLY

VARIATIONS

wip

x-factor

YOUR REQUIREMENTS

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Good business processes can be a real competitive

advantage. The way your business operates and the
processes you follow ultimately determine your efficiency
and profitability. It is of utmost importance therefore
that your processes be as streamlined as possible with
duplication and error near non-existent. A good software
choice should enhance your current business processes,
making you more efficient, reliable and profitable.

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Australian
made
The Australian construction, engineering
and service contractor industries each have
their own peculiarities and differ to their
counterparts in other countries.

Further to this, a good vendor will be able to review

your business processes to ensure success. Your chosen
vendor should be able to demonstrate their industry
knowledge and business analysis skills as these will be
critical to improving your business.

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Business
processes

Legislation changes, reporting requirements,

plus your implementation, ongoing training
and helpdesk needs will usually be better
catered for by an Australian vendor with a
track record of success in your industry. To
get the most out of your system, your vendor
must not just think they know your industry,
they need to live and breathe your industry.

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A to Z of construction software

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The purchase of any software system will likely be a

significant capital investment and should therefore
satisfy your criteria for return on investment.

While each company is different, a good vendor

will be able to explain where you should expect to
see improvements and by how much. If a vendor
cannot demonstrate research collected into the
benefit of systems like theirs, it may be because they
cannot quantify the benefits and therefore are
they a safe bet for your business?

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Before a decision to implement is made, you should

have a very clear idea of where the software will
be adding value to your organisation, the costs
associated with the implementation and how fast
you can expect a return on your investment.

Cost/
benefit
ratio

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Document
management

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Documents are of central importance to project and

services organisations. Documents might be for Human
Resources, Quotations, Clients, Creditors, creditor
invoices and other aspects of your business.
In considering any software system for your
organisation, all potential vendors should be able to
demonstrate how their software can link documents
to your work flows and transactions. Viewing your
documents should be no more than a click or two away
from any spot within your chosen software system.

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A to Z of construction software

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Risk is a factor in any industry, however the construction

industry particularly is susceptible to a greater range of
risk. This being said, the ability to measure and forecast
in terms of financials, time and quality helps to mitigate
the risks.

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Erp
Enterprise Resource Planning (ERP) is a software system
that facilitates the flow of information across your entire
company. ERP chains together the processes involved
with financials, projects, asset management, human
resources, documentation, marketing, supply chain and
more. Therefore, all your business functions, whether in
the same building or the other side of the world, have
access to accurate business information in real time.

Any good software package should work to ensure

that your financials reconcile to the cent for every
accounting period. But for the construction industry,
it is suggested you ensure that short-listed software
vendors place equal emphasis on retention and work
in progress to ensure you have Project Management
Control as well as Financial Control.

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fINANCIAL
& PROJECT
MANAGEMENT

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The right ERP will remove duplication and streamline

your business processes, eliminate revenue leakage and
improve profitability, improve project cost control, and
improve control and governance of the organisation.

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A to Z of construction software

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Research shows there exists a strong link between

governance and a companys bottom line and that good
governance is required by all companies if they are to
grow sustainably and become true industry leaders.

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Integrated software systems (eg. ERPs), when used

effectively, can improve a construction companys
governance practices with regards to business
performance, performance management, risk
management and compliance.

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Therefore, when seeking a software vendor it is

suggested you question them on how their software will
work to improve the governance of your organisation.

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good
governance

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Helpdesk

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Ensure your software provider has a

helpdesk or support service available with a
guaranteed response time. In an environment
where every minute counts, the last thing you
want is to be waiting for long periods of time
before you receive the assistance needed.

Also, be sure to check that you are going to

get assistance from people who know your
company and know the software. Assistance
from a call centre employee with limited
knowledge of the system will prove frustrating
plus cost you time and money even if it is
within a guaranteed timeframe.

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A to Z of construction software

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Construction businesses, by their very nature, carry out

high value contracts and therein lies a significant risk.

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Knowing the profitability of a project at any point in time

is vital for control, and forecasting the cost to complete
the project is central to an accurate profit measure.

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Information
SECURITY
Information security starts with a comprehensive
disaster recovery strategy. In looking for a software
vendor, it is highly recommended that you ensure they
have a solution you are comfortable with when it comes
to disaster recovery.

A suitable ERP system must contain this important

forecasting function to enable you to exercise proper
control of your projects. Importantly, the system should
retain this forecast data month to month to support trend
analysis and project reviews.

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Job
forecasting

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Also worth considering is the extent to which you want

to control access to your information. Good providers
will be able to offer database access controls, other
access permissions, audit trailing and more.

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These things ensure your data is not lost or

compromised, that people access and contribute only
as prescribed, reduce the opportunity for fraud and
facilitate forensics.

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A to Z of construction software

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A software vendor who knows your industry and

caters to your industrys specific needs is a proven
asset. They will provide a solution that caters
to your particular requirements such as RCTIs,
Security of Payments and site awards to name a
few not just a one-size-fits-all package.

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The knowledge of the team behind the software is

also an important factor. A team who has come
from your industry, worked in your industry and
knows the industry will almost always do a better
job because they understand your business. And,
ideally, this industry knowledge should extend
beyond just the vendors software offering to their
training, support and consultancy services offered.

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Knowledge
base

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Legislation

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A feature of the construction industry is the onerous

compliance obligations.
A suitable ERP system will aid this compliance task
by providing functionality to cover things such as
Security of Payments obligations, maintenance and
reporting of employee and sub-contractor licenses
and qualifications, together with the necessary alerts,
warnings and controls to streamline these critical
functions as much as possible.

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A to Z of construction software

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We are in a time and industry where winning work can

be as much about who you know as it is about what
you know. It seems to be less about competing with
other companies with the focus increasingly on building
alliances, partnering, working together and referring
those you recommend.

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MIlestone
SCHEDULES
One of the key drivers for investment in ERP
is to improve management control across the
entire organisation. This is achieved in large part
through timely and highly visible information on
the status of projects and service jobs.

The right industry-specific software provider can

be a true asset in this regard. Some vendors host
functions where you have the chance to network with
representatives from other companies that use their
software also. Events such as this also give you the
opportunity to let your chosen vendor know what
changes you would like to see in the software and to
learn about others experiences with the software.

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Networks

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The ERP system will provide the platform for this

through schedules designed for the differing
styles of projects and jobs in your business, with
the status being updated by the performance of
the normal day to day activities on the projects
and jobs.

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Management will be empowered with the

information necessary to address problems on
jobs and act sooner to mitigate the risks.

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A to Z of construction software

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Choosing a software provider is a strategic decision

and is the start of what should be a partnership that
may span many years or even decades. For this
reason it is imperative that your chosen vendor is
always improving their offering and releases software
upgrades regularly otherwise, as the technology
dates, so will your company!

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Potential vendors should have ongoing development

and upgrades that seek to always use the latest
technologies to improve your business, save you time
and save you money rather than just producing an
upgrade for the sake of it. Ongoing development
translates into constant improvement of your business
and acts to keep you ahead of the competition.

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Ongoing
DEVELOPMENT

Payroll

People are the backbone of any organisation and

it is most important to ensure they are all paid for
the work they do both on time and in accordance
with the relevant awards and allowances.
When the payroll and job costing solutions are
integrated you will be able to cost jobs, forecast
labour on jobs and bring forward labour charges
where jobs are do and charge.

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Therefore, when you are short-listing software

vendors check to ensure their payroll solution is
integrated with the rest of the software they have
to offer. This way you can plan and forecast with
increased accuracy and therefore build on your
strengths and improve profitability.

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A to Z of construction software

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Reporting is an important part of any construction business,

and your software will play a big part in this. Reports are
what deliver you the business intelligence you need to
make the best decisions so it is imperative that your chosen
software has industry-leading reporting capabilities.

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Quality
Without good quality workmanship, materials and
tools buildings will not stand the test of time. The
same is true of businesses. Without good quality
tools such as business processes and the software
that supports those processes, accurate and sensible
business decisions become difficult.

While reports can be standardised to a certain extent, every

construction company is different and therefore a software
package that gives you the ability to create your own
customised reports is generally advised. This saves you time,
delivers you better information and saves you from paying
your vendor to create your customised reports.

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Reporting

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Ask your shortlisted software vendors to provide

you with information on their quality standards and
processes and if they stumble over the question or
havent thought about it before, what could this mean
for your business?

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Good quality outcomes provide the best opportunity

for a sustainable and profitable business.

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A to Z of construction software

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The decision to go with a particular software vendor is often

a long-term and strategic decision and usually one made
so that growth, improvements and change can take place in
your organisation.

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Therefore, it becomes very important to ensure that the

vendor chosen has the experience, knowledge and service
offering to be able to support your organisation through
change. A software vendor that can support you with your
business decisions, assist and guide you through growth,
assist with mergers and acquisitions and more is of much
greater value than a software vendor that sells out of the
box software and waves you good luck and good bye.

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Support

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Training

To ensure you get the most out of your chosen

software system, education and training
must take place before, during and after the
implementation. Knowledge of the software
should span across your organisation, with
extensive training of end users. All potential
software vendors should be able to offer
your company training programs with proven
methodologies and a track record of success.
A good training program will allow your
company to become autonomous using the
system and achieve the highest ROI. Further,
concise, quality documentation of your business
processes will aid your trained personnel and
drive down induction costs for new people.

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A to Z of construction software

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It wouldnt be a construction or
engineering project without variations!

An ERP system claiming to service the

industry must demonstrate comprehensive
functions for the management of both
head contract and sub-contract variations,
including the changes to project cost
budgets arising from them, their status and
valuation from one accounting period to
the next, and their inclusion in progress
claims and payment processes.

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user
friendly
A common pitfall within the software industry is
that often the more extensive and encompassing
a software system is the more complex its use
becomes for your people. In fact this is a challenge
companies within the industry and research firms
often highlight just because you put the system in
doesnt mean your people will use it.

Managing variations with an ERP system

addresses a key risk to revenue for any
construction business.

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Variations

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This is not always the case however it demonstrates

the need to shop around when searching for a
vendor. Ask your vendor what functionality is built
into their system to make its use easier for their
people. Understandable help-text, customisable
profiles, point-and-click navigation, logical design
and training options should be among the answers
that a good vendor will give.

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A to Z of construction software

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Work in Progress (WIP) is one of the key

components of working capital for any construction
business and its management is vital to the financial
health and capacity of the business.

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Construction industry ERP systems will streamline

the monthly process of valuing WIP by integrating
all the functions necessary for generating a
valuation and bringing it to account. Also, by
having the system perform this critical task monthly,
many hours of spreadsheet entry are eliminated and
a much more timely and accurate picture of the
financial position of each project and the business
is available to management.

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WIp

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X-factor

Many companies surveyed in compiling this guide

agreed there is a certain feeling you need to get
when deciding on a software vendor. By the time
you have a solid short-list of potential vendors you
might have a clear feeling that one vendor stands
out as a better match for your business or as
more trustworthy than the others. Those surveyed
agreed with the saying all else being equal, go
with your gut.
By the time you reach the decision point, you
should have seen at least one, but maybe multiple
demonstrations of the software and you will likely
have a good feel for the team behind it. If you
can see your company working better with one
provider over the others go with them.

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A to Z of construction software

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If your construction company is in the market

for software and you have followed the tips
contained in this guide, you should definitely
be catching some zs and sleeping easy.

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Your
requirements
Your company and your companys requirements should
always be at the centre of all conversations with potential
software vendors. Sure, their programs may be able to do
all kinds of fancy things, but if they cannot do what your
company needs to stay ahead, what is the point? And, if
they are not listening to your requirements from the start, its
likely that things will remain all about them in the long term.

Following these tips, you will have peace of mind

that you are going to make an informed software
decision that will see your company implement a
software package for real return-on-investment.

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This being said, it is important to have done a thorough

analysis of your companys needs and expectations for the
software so that you can make the most informed decision
and get the product and vendor that best suits your needs.

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A to Z of construction software

www.levesys.com

NOTES

levesys software and services

for the australian construction,
engineering and service
contractor industries.

www.levesys.com