ONE of the biggest challenges for any construction company is in estimating cost of construction, which in turn helps it in containing overheads and expenses. Since the projects are usually spread over many years, aligning the projected cost with the actual cost becomes difficult. The challenge becomes manifold given that most companies deal with large project and huge volumes.
For example, one of the major construction companies in India was also facing the same challenge. For this company, at any given time there would be at least 50-60 construction projects running concurrently. The departments were maintaining the data in different files using different Excel charts. The accounts department was maintaining a separate software package but materials and purchase was not linked to these. Moreover, much of this data was lying in site offices, which was not connected to the head office.
Whenever there was an enquiry, each department would have to pull out the information and consolidate it for the report. The entire process of collecting and collating information from various departments was being done manually. This not only slowed down the decision-making process but also create power centers within the company. This made it very difficult to do real-time cost estimation of different projects. For details:http://www.eresourceerp.com/Construction-industry-to-benefit-a-lot-from-eresource-ERP.html