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The Top Eight Best Features of Construction Costing Software

Whether you own a small, family-owned construction company, or oversee a corporate whale, construction job costing software is an invaluable tool. Job costing software can greatly improve estimate accuracy, identify product losses, and determine the employee turnover rate. However, bad software or the lack of software can cause detrimental effects on your business.

It is very important that each person in your business with access to the software is trained properly on how to use the software. You can give administrative access to select managers while giving basic access to other employees. It is possible to find the best costing software for your business if you know what you are looking for. Here are the top eight best features of construction costing software.

1. Labor

The best construction costing software will track labor and its associated costs. The system will document employees’ time, attendance, and absence. Do you have hourly employees, independent contractors, and salaried labor? The best software can document all types of employees. It makes it easy to determine how much you are spending on labor and where you can cut costs.

When you own a construction company, you know there are multilevel jobs that may require subcontractors. Do you need to hire plumbers, electricians, roofers, and other specialists? Do you subcontract the same work to different contractors? Do you know which one does the best work and which one is the most affordable? It can be very difficult to track the labor costs.

You can quickly figure out which employees or subcontractors are the most efficient at their trades. For example, the cost of labor typically is the number of working days times the daily pay rate times the number of workers. You may find one subcontractor can perform the same labor requirements in minimal time, lowering your cost of labor. It makes it easier to decide which subcontracting company to hire based on experience and the cost.

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2. Cloud-Based Storage

Construction job costing software quantifies daily operations, profits, and losses. It can track every aspect of your business through data. Whether your business is small or large, massive amounts of data must be stored. It is very hard to store all the data on physical hardware. The storage will quickly be filled and you will find the software slows or stops working altogether.

When you are looking for the best construction costing software, you should look for cloud-based storage. Many software programs include a certain limit of cloud storage options. Often, it is possible to increase the cloud-based storage limits at an extra cost.

3. Cloud-Based Functionality

As you know, when you work in construction, you can be pulled out from many different job sites. The job sites may be located hours away from the main office. Instead of making your employees drive to the office before the job site, they can clock in using the cloud-based functionality.

You and your management team can track the costs of labor, materials, and equipment while you are out in the field. You will not have to return to the office to log in. You can track costs in real-time.

4. Integrations

The best construction job costing software for your company will automatically integrate with other software. The administrative team will not have to spend time transferring data, reports, or spreadsheets. Instead, the software can sync or integrate with the other vital applications. Before you settle on which construction costing software to purchase, you should first find out if it can integrate with the current programs.

5. Accurate Reporting

Reports give valuable insights into the operations of your company. Reports can tell you about overages or the most profitable jobs. It can also show you which jobs are least profitable. Reports quantify your data. They will also show you whether or not you are meeting your projected costs. If you find that you are constantly overspending in one area, you can readjust your estimates and compensate for the losses.

It is very easy to lose small amounts of money without noticing multi-level construction jobs. Over time, these smaller amounts of money add up. You could be losing tens of thousands of dollars each fiscal year.

6. Equipment and Materials

Equipment and materials are one of the main costs of any multi-level construction job. The construction costing software can track supplies, equipment rentals, material purchases, and every other variable.

It will tell you exactly what you are spending your money on and in which department. It can indicate how much the costs are and give you a better idea of how to formulate your estimates in the future. Every quarter, you may experience material cost increases. The software can help you accommodate these cost increases by helping you create more accurate estimates.

The construction costing software will also account for material and equipment rental taxes.

7. Invoices and Purchase Orders

The costing software will track invoices and purchase orders. This is extremely helpful when you need to do taxes each year. It will also ensure you are paying your bills on time and getting paid on time. It can be very easy to forget about an invoice for a subcontractor when you have a multitude of ongoing jobs. What is your current filing system?

Do you have an iron-clad system dictating when you need to pay invoices and to whom you should pay them? The best construction costing software will tell you which invoices have been received, paid, and are pending.

8. Job Phases

It is very difficult to wire and plumb a house when the walls are not framed. It is difficult to put a roof on a commercial property without the foundation being set. The best software will divide jobs into phases.

You can create as many phases needed to complete the entire project. The data in each phase will tell you which parts of the renovation or building project cost the most. It will also tell you where you are meeting your quotes and which areas you are doing best financially.

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