Software For Contractors

Written by: Kelsey Hainley and John Meibers

The construction industry is one of the largest employers in the United States, employing about 10 million people and contractors employ a large percentage of those workers. Contractors can have different areas of specialization and work on a wide range of projects, from small renovations to multi-billion dollar skyscrapers and everything in between. They use various construction project management tools and software, such as project management, accounting, estimating, invoicing and billing software, to manage their day-to-day operations.

In This Article

• Types of Software for Contractors
• Best Software for Contractors
• Benefits of Using Software for Contractors
• How to Choose the Right Software
• Accounting Software for Contractors

There are many types of software for contractors, ranging from free to high-end enterprise solutions.

Construction software companies offer numerous options, including cloud-based solutions, depending on what kind of solution you need and your company size. Whether you are a small, large or midsize construction company, you may need unlimited users or a certain number of users per month. Here, we look at some of the most common construction management tools contractors use today to reach their construction goals.

Construction Project Management Software

Managing construction projects involves many tasks that require precise planning and execution using real-time data. Construction firms use construction project management software to assist in organizing tasks, tracking progress and ensuring that projects stay on schedule throughout the entire project lifecycle.

Construction management solutions enable industry leaders like construction project managers to collaborate efficiently with their teams, monitor resource allocation and communicate effectively with stakeholders.

Construction Accounting Software

Contractors use construction accounting software to track all the costs associated with building projects. This includes job costing, payroll, accounts payable and accounts receivable (AP/AR), general ledger, cash flow management, financial management, financial reporting, work in progress (WIP) reporting and audit reporting. The software allows project teams to track expenses, such as materials, labor and equipment and easily manage subcontractors and generate financial reports based on real-time data. This helps project managers and owners keep tabs on how much money they spend on each project and complete projects on time, while complying with construction industry standards.

Construction Payroll Software

Construction payroll software tracks total employee hours worked, calculates overtime and generates reports. The software also allows contractors to track payments made to subcontractors, which helps ensure that all parties involved in the project are paid correctly. Since construction payroll is so unique, construction payroll software reduces the number of errors and complies with state and federal regulations, allowing contractors to easily manage the complexities of payroll while remaining in control.

With software options like Deltek ComputerEase, contractors maintain approval rights but alleviate themselves of the burden of double data entry and tracking tax filing deadlines.

Invoice & Billing Software

Invoice and billing software helps a contracting business track sales, customers and payments. This software allows users to create professional invoices, send them electronically and receive payment from clients. The software also tracks customer information such as contact details, purchases and orders.

Time Tracking Software

Construction time tracking software enables construction companies to track their employees' timesheets, so they know precisely how long each employee has been working on a project. It's important to accurately record your staff's hours because it affects payroll calculations. Some contractor software solutions, like Deltek ComputerEase, offer a mobile app so you can easily track time.

Estimating and Bidding Software

Construction estimating software helps construction firms estimate how much work they need to complete projects, allowing them to plan for future jobs and avoid delays. Estimating software also provides valuable information about project costs, which contractors can use to negotiate better prices from subcontractors. Estimating and bidding software plays a pivotal role in creating accurate estimates and competitive bids.

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There are many different types of construction professionals and specialty contractors, each with varying areas of specialization and unique requirements from their construction management software. No matter your job or specialization, you need your project management tools to have the flexibility to handle your specific needs. All contractors and construction managers should use construction accounting software. Here is an overview of the various types of contractors and essential key features in software to run their business successfully:

• Commercial Contractors: Commercial contractors have several unique needs that commercial contractor software must satisfy. Job costing is essential to ensure that they profit on every construction project, giving a comprehensive picture of the company's health. They also need flexible invoicing and billing options, including AIA billing, Time & Materials, unit billing and more.
• Demolition Contractors: Demolition contractors require powerful solutions to help them handle job costing, accounting, equipment management and more. For demolition contractors, one of the most distinctive needs is a steady understanding of how your equipment is faring. Demolition software needs to be able to schedule jobs around the equipment and show how much each piece in the fleet costs.
• Electrical Contractors: Electrical contractors use specialized software for estimating, scheduling, project management, billing and accounting. Electrical contractor software with built-in scheduling lets contractors track technicians across multiple service calls. These essential features mean they can easily build a schedule for all their techs, preventing overbooking and idle technicians.
• Excavation Contractors: Critical to any excavation contractor software is equipment management. Excavation contractors need equipment tracking systems that can tell them everything they need to know about every piece of equipment, truck or car in their fleet. That way, they know when the cost of maintaining an item is becoming too high to be worth keeping.
• General Contractors: Whether they complete jobs themselves or subcontract out all the work, every general contractor needs a subcontract management system that helps them keep track of jobs, bids and subcontract agreements. General contractors also need construction project management software/construction accounting software with payroll and billing features.
• Heavy Highway Contractors: Contractors who build highways, roads and bridges have highly specialized software needs. They use construction accounting software for job costing and equipment costing systems, so they always know everything they need about every piece of equipment or vehicle in their fleet.
• HVAC Contractors: HVAC contractors need software that can handle various issues. They need a dispatching solution to keep track of technicians in the field and job costing solutions to ensure every job they take ends up making a profit. They also require construction payroll administration that can handle multiple locations, various job types and compliance with labor laws wherever they go.
• Mechanical Contractors: Mechanical contractors are in a highly specialized construction industry niche. To remain profitable, software for mechanical contractors needs to keep up with the unique requirements of the industry niche. Scheduling software lets mechanical contractors track their field staff across multiple service calls. Construction accounting solutions with built-in payroll features enable them to automate pay rates and fully comply with labor laws.
• Pipeline Contractors: Pipeline contractors' software needs are unique due to their specialized equipment and the prevalence of multi-state and multi-local payroll jobs. Software for pipeline contractors will include job costing, payroll and billing features. Equipment costing is also essential for pipeline contractors to track the location and costs of every car, truck or piece of equipment in their fleet.
• Plumbing Contractors: Plumbing contractors need software that can handle scheduling and dispatch challenges and tracking and managing tools and inventory. On top of that, plumbing contractors need a job cost accounting system and a CRM that can keep them ahead in the bidding process.
• Remodeling & Renovation Contractors: Whether they focus on commercial or residential renovation projects, remodeling and renovation contractors require construction project management software that helps them to deliver successful projects. Job cost accounting software helps renovators to ensure a profit on every job. Construction management software with powerful reporting features lets them know where projects are performing well and identify potential problems before they arise.
• Residential Contractors: Residential contractors are an important sub-section of the construction industry. Whether they build small family houses or large multi-unit structures, they need residential construction management software that helps them manage all aspects of their home-building projects. Project management and construction accounting software enables residential contractors to manage their budgets, schedules and work in progress reporting so they can deliver successful projects.

The adoption of software yields several advantages for contractors. From increased efficiency through streamlined processes to improved accuracy in estimates and financial management, the benefits are manifold. Enhanced collaboration, real-time communication and cost savings further highlight the transformative impact of software on construction projects.

Improved Accuracy

Construction teams that utilize specialized software ensure precision in cost estimation, financial reporting and payroll management. This accuracy leads to better decision-making, reduces the likelihood of costly errors and ultimately improves the overall profitability of construction projects.

Streamlined Operations

Contractor management software is a single source for centralizing project data, documents and communications. This streamlines operations and enhances collaboration between team members, subcontractors and clients. A well-organized system increases productivity and minimizes the risk of miscommunication or lost information.

Enhanced Communication

The collaborative nature of construction projects demands seamless communication and coordination among project team members. Software designed for contractors enhances collaboration by providing centralized platforms and mobile apps for communication, document management and task management. Real-time updates and instant messaging features enable team members to stay connected, leading to improved decision-making and faster problem resolution.

Cost Savings

Effective cost management is critical in the construction industry and software plays a pivotal role in achieving cost savings. By automating repetitive tasks, minimizing errors in estimates and optimizing resource allocation, contractors can avoid costly mistakes and operate more efficiently. Furthermore, software solutions provide insights into project expenses, helping contractors identify areas for potential savings and allocate resources more effectively. In the long run, these cost-saving benefits contribute to the overall financial health and sustainability of the construction business.

Selecting the appropriate software requires a strategic approach. Begin by assessing specific project needs, considering factors like project size, complexity and team dynamics. Compatibility and integration with existing systems are crucial, ensuring seamless operations. A user-friendly interface promotes accessibility for all team members and scalability is vital for adapting to the dynamic nature of construction projects.