Construction ERP Software | Best ERP for Construction Companies 2025

The Contractor's Guide to Construction ERP Software in 2025

Construction is not like other industries, and the ERP requirements reflect that reality. Every project is unique. Work happens across hundreds of jobsites rather than within the four walls of a factory or warehouse. Revenue recognition follows percentage-of-completion or cost-to-cost methods that most generic ERP systems barely understand. Subcontractors perform 70-80% of the actual work but operate as independent businesses with their own schedules, insurance, and compliance requirements. And margins of 2-5% mean that a single project with poor cost tracking can wipe out the profit from three successful ones.

This guide is written for general contractors, specialty subcontractors, heavy civil contractors, and construction-adjacent firms (engineering, architecture, environmental) who need an ERP system that actually understands how construction works. Most ERP comparison pages treat construction as a minor footnote or simply recommend the same generic platforms used for manufacturing or distribution. That approach fails because construction has fundamentally different financial, operational, and compliance requirements.

Why Construction Companies Struggle With Generic ERP

Before evaluating specific vendors, it is essential to understand why construction organizations have such high rates of ERP dissatisfaction. The answer is almost always that they selected a system designed for a different industry and tried to force-fit it to construction workflows. Here are the specific pain points that drive construction companies to seek purpose-built solutions.

Project Cost Overruns Are Invisible Until It Is Too Late

In construction, profitability is determined at the project level, not the company level. A company can be running ten profitable projects and a single catastrophic project can destroy the year. The challenge is that generic ERP systems track costs at the GL account level, not at the project/phase/cost-code level that construction requires. By the time a cost overrun shows up in monthly financial statements, it is often weeks or months too late to take corrective action. Construction ERP must provide real-time cost-to-budget comparison at the work breakdown structure (WBS) level, with automatic alerts when cost codes trend over budget.

The Field and the Office Operate in Parallel Universes

Project managers and superintendents on jobsites are managing daily logs, tracking labor hours, documenting change orders, receiving materials, and coordinating subcontractors. Meanwhile, the accounting team in the home office is processing payables, managing cash flow, billing clients, and preparing financial reports. In many construction companies, these two worlds barely communicate. Field data reaches accounting days or weeks late, if at all, through crumpled timesheets, phone calls, and emailed spreadsheets. Modern construction ERP bridges this gap with mobile-enabled field reporting that flows directly into project accounting in real time.

Subcontractor Management Is Administrative Chaos

General contractors may manage 50-200 active subcontractors at any given time, each with their own contracts, insurance certificates, lien waivers, change orders, and payment applications. Tracking subcontractor compliance (insurance expiration, safety certifications, minority business status) across hundreds of subs manually is a full-time job and a significant liability risk. Construction ERP should centralize subcontractor management with automated compliance tracking, electronic payment application processing, and lien waiver management.

Change Order Tracking Falls Through the Cracks

Change orders are inevitable in construction, but they are also one of the most common sources of revenue leakage. When a change order is verbally approved on a jobsite but not formally documented, priced, and billed, the contractor absorbs the cost. This happens repeatedly on every project, and the cumulative impact is devastating. Construction ERP must provide a structured change order workflow: initiation from the field, cost impact analysis, client approval, and automatic inclusion in the next billing cycle.

AIA Billing Complexity Overwhelms Generic Systems

The AIA (American Institute of Architects) billing format, specifically the G702/G703 Application and Certificate for Payment, is the standard for construction progress billing. It is also completely foreign to generic ERP systems. AIA billing requires schedule of values, percentage-of-completion by line item, stored materials billing, retainage calculation, and a specific document format that clients and their lenders expect. Attempting to replicate this in a generic ERP's invoicing module invariably results in manual workarounds, usually involving Excel spreadsheets alongside the ERP, which defeats the purpose of the system.

Equipment Utilization Is a Black Box

For contractors who own significant equipment fleets (heavy civil, excavation, paving, crane operations), equipment costs are a major portion of project costs. Without proper equipment tracking in the ERP, companies cannot accurately charge equipment costs to projects, optimize fleet utilization, schedule preventive maintenance, or make informed own-versus-rent decisions. Generic ERP asset modules track depreciation and book value but do not handle the construction-specific requirements of equipment cost allocation by project, hour-metered maintenance scheduling, and fleet utilization analysis.

Compliance and Safety Tracking Are Fragmented

Construction companies face a complex web of compliance requirements: OSHA safety documentation, certified payroll for prevailing wage projects, minority/disadvantaged business enterprise (M/DBE) participation tracking, environmental compliance, and bonding and insurance requirements. When these are managed in separate spreadsheets, databases, and paper files, compliance gaps inevitably occur, exposing the company to fines, claims, and lost bidding eligibility.

Best Construction ERP for SMBs ($10M-$250M Revenue)

The construction ERP market for small and mid-sized contractors has historically been dominated by a few established players. Recent cloud entrants have expanded the options, but construction-specific depth remains the critical differentiator. General-purpose ERPs with "construction add-ons" rarely match the functionality of purpose-built construction systems.

Sage 300 Construction and Real Estate (Sage CRE)

Best for: Mid-size general contractors and specialty subcontractors who need the most comprehensive construction-specific financial management available in the mid-market.

Sage 300 CRE (formerly Timberline) is the most widely installed construction ERP in North America, and its dominance is earned. The system was built from day one for construction accounting and provides the deepest job costing, AIA billing, and construction financial management in the mid-market. Job cost tracking at unlimited levels of the work breakdown structure, percentage-of-completion revenue recognition, retainage management (both payable and receivable), certified payroll, and AIA G702/G703 billing are all native, mature capabilities.

The property management module makes Sage 300 CRE particularly relevant for companies that both build and manage real estate. Service management handles warranty and maintenance work. The system integrates with Sage Estimating, which provides a complete bid-to-billing workflow. The installed base of tens of thousands of construction companies means that finding experienced consultants, support resources, and integration partners is straightforward.

Watch out for: Sage 300 CRE is an on-premise system with a dated user interface. Sage has invested in cloud migration (Sage Intacct Construction) but the feature parity is not yet complete. The system's mobile capabilities are limited compared to modern cloud platforms, which is a significant drawback for field-office connectivity. Younger employees and new hires often find the interface frustrating after using modern cloud applications. If cloud-first and modern UX are priorities, Sage 300 CRE will feel like a step backward, despite its functional depth.

Acumatica Construction Edition

Best for: Contractors who want a modern, cloud-native platform with strong project accounting, subcontractor management, and compliance tracking, especially those who also do service work.

Acumatica Construction Edition is the most compelling cloud-native construction ERP that has emerged in the last decade. Built on Acumatica's proven cloud ERP platform, it provides construction-specific functionality including job costing with multi-level WBS, AIA billing (G702/G703), subcontractor management with compliance tracking, change order management, retainage tracking, and commitment management for subcontracts and purchase orders.

The platform's mobile capabilities are strong, with field reporting, time entry, daily logs, and document management accessible from any device. The integration with Procore (the most widely used construction project management platform) is native, creating a connected field-to-office workflow. Unlimited-user licensing makes it economical to provide system access to project managers, superintendents, and field supervisors who need it.

Watch out for: Acumatica Construction Edition is relatively new compared to Sage 300 CRE or Viewpoint Vista. While the core construction functionality is solid, some of the deeper features that established construction ERPs offer (complex union payroll, multi-state certified payroll, advanced equipment management) may require add-ons or workarounds. The partner ecosystem for construction-specific implementations is still growing. Thoroughly evaluate the system against your specific construction accounting requirements before committing.

Oracle NetSuite

Best for: Construction and engineering firms that need strong project accounting and financial management with the scalability and integration advantages of a cloud-first platform.

NetSuite is not a construction-specific ERP, but its project accounting capabilities, combined with construction add-ons from NetSuite partners, make it a viable option for construction companies, particularly those in the engineering, environmental, and specialty contracting space where project accounting matters more than heavy construction-specific features like AIA billing and union payroll.

NetSuite's SuiteProjects module provides project budgeting, resource planning, time and expense tracking, and percentage-of-completion revenue recognition. The financial management backbone is strong, with multi-entity consolidation, automated revenue recognition (ASC 606 compliant), and robust reporting. For construction firms that also have service, consulting, or engineering divisions, NetSuite provides a unified platform across these business lines.

Watch out for: NetSuite does not natively provide AIA billing, construction-specific retainage management, certified payroll, subcontractor compliance tracking, or job costing at the granularity that dedicated construction ERPs offer. These capabilities can be added through SuiteApps from partners, but this means additional cost, integration complexity, and dependency on third-party vendors. If you are a general contractor or heavy civil contractor, NetSuite will likely feel like a square peg in a round hole for your core construction accounting needs.

SAP Business One

Best for: International construction and engineering firms that need strong multi-currency, multi-language support with construction functionality delivered through specialized partner solutions.

SAP Business One serves construction companies primarily through partner add-ons that provide project management and construction accounting on top of SAP's solid financial backbone. Partners like Boyum IT, ProjectPro, and others have built construction-specific modules that handle job costing, progress billing, subcontractor management, and equipment tracking within the B1 framework.

For construction companies with international operations (engineering firms with projects across multiple countries, infrastructure companies working in emerging markets), B1's mature multi-currency, multi-language, and multi-entity capabilities provide a foundation that purpose-built construction ERPs often cannot match. The integration with SAP's broader ecosystem also provides options for scaling to S/4HANA as the company grows.

Watch out for: The reliance on partner add-ons for construction functionality means you are managing multiple vendor relationships for support and upgrades. The add-ons vary in quality and depth; some are robust and well-maintained, while others are maintained by small firms with uncertain futures. Always evaluate the partner add-on independently, including their customer base, update frequency, and support model. Core B1 without add-ons is insufficient for any serious construction operation.

Viewpoint Vista

Best for: Mid-market general contractors and heavy civil contractors who need deep construction financial management with strong field connectivity and equipment management.

Viewpoint Vista is a purpose-built construction ERP that has served the mid-market construction industry for decades. The system provides comprehensive construction accounting (job costing, AIA billing, retainage, certified payroll), project management, equipment management, and HR/payroll capabilities designed specifically for construction. Vista's equipment management module is particularly strong, handling internal equipment cost allocation, hour-metered maintenance scheduling, fleet utilization analysis, and own-versus-rent decision support.

Viewpoint has invested significantly in field connectivity through Viewpoint Field View (mobile time entry, daily logs, and field reporting), Viewpoint Team (collaboration), and integration with Trimble's construction technology platform. The combination of deep financial management with field-to-office connectivity makes Vista a well-rounded solution for mid-market contractors.

Watch out for: Vista's architecture is evolving from its on-premise roots toward cloud deployment, but the transition is still in progress. Some modules are more modern than others, and the user experience can be inconsistent across different parts of the system. Viewpoint was acquired by Trimble, which provides construction technology integration advantages but also introduces uncertainty about long-term product direction within the broader Trimble platform strategy.

Foundation Software

Best for: Residential builders, commercial subcontractors, and smaller contractors who need solid construction accounting without the complexity and cost of enterprise platforms.

Foundation Software is a construction-specific accounting and ERP system built for contractors who need the right level of functionality without being overwhelmed by enterprise-scale complexity. The system provides job costing, AIA billing, accounts payable with check writing, payroll (including certified payroll and multi-state capabilities), equipment costing, and financial reporting purpose-built for construction.

Foundation's value proposition is straightforward construction accounting that works reliably without requiring a dedicated IT team or expensive consultants to maintain. The system is available both on-premise and in the cloud, with a pricing model that is more accessible than larger construction ERP platforms.

Watch out for: Foundation is focused on construction accounting and does not provide the broader ERP capabilities (procurement, inventory management, CRM, field management) that larger contractors may need. If you are looking for an end-to-end platform that covers everything from bidding to billing to field operations, Foundation will need to be supplemented with other systems. The system is best suited for contractors under $100M in revenue with relatively straightforward operational requirements.

Best Construction ERP for Enterprise ($250M+ Revenue)

Large construction organizations, whether large general contractors, heavy civil and infrastructure firms, or global engineering and construction companies, require ERP systems that can handle multi-project, multi-entity, multi-region complexity with robust financial consolidation and enterprise-grade security.

Oracle Primavera + ERP Cloud

Best for: Large-scale infrastructure, heavy civil, and mega-project contractors that need enterprise project management integrated with world-class financial management.

Oracle Primavera is the global standard for large-scale construction project management, scheduling, and resource optimization. When combined with Oracle ERP Cloud for financial management, it creates the most comprehensive enterprise platform for large construction organizations. Primavera P6 handles complex CPM scheduling with thousands of activities, resource loading and leveling, earned value management, and multi-project portfolio management at a scale that no other platform can match.

Oracle ERP Cloud provides the financial backbone with multi-entity consolidation, intercompany transactions, multi-currency accounting, and project accounting that supports percentage-of-completion revenue recognition across large, complex projects. For organizations managing a portfolio of hundred-million-dollar-plus projects across multiple countries, this combination provides the control, visibility, and compliance capabilities required.

Watch out for: The Oracle Primavera + ERP Cloud combination is expensive and complex to implement. Integration between Primavera and ERP Cloud, while supported by Oracle, requires significant configuration effort. The two systems have different architectures and user experiences. The total cost of ownership, including licensing, implementation, integration, and ongoing support, puts this option out of reach for all but the largest construction organizations. Expect 18-36 months for a full implementation.

SAP S/4HANA

Best for: Global construction and engineering conglomerates that need enterprise-grade financial management, project accounting, and the deepest functional coverage across all business processes.

SAP S/4HANA serves the largest construction and engineering companies in the world with comprehensive project management and accounting capabilities. The Project System (PS) module handles WBS structures, earned value analysis, network scheduling, and project budgeting at enterprise scale. Integration with Materials Management (MM), Plant Maintenance (PM), and Finance (FI/CO) provides end-to-end visibility from procurement through project execution to financial reporting.

For global construction firms operating across dozens of countries, SAP's multi-entity, multi-currency, and regulatory compliance capabilities are unmatched. The ecosystem of SAP consulting partners with construction industry expertise is the largest available, and SAP's industry solutions for engineering, construction, and operations (EC&O) provide pre-configured processes for construction-specific workflows.

Watch out for: SAP S/4HANA was not designed specifically for construction, and some construction-specific requirements (AIA billing format, subcontractor compliance tracking, certified payroll) require configuration, partner solutions, or customization. The implementation cost and timeline are the highest in the market. For construction companies that do not have genuinely global operations or enterprise-scale complexity, SAP is almost certainly more system than needed.

Microsoft Dynamics 365 + Project Operations

Best for: Large construction and engineering firms that want an integrated project lifecycle platform within the Microsoft ecosystem, with strong mobile and collaboration capabilities.

Microsoft Dynamics 365 Project Operations provides project-based companies with capabilities spanning project planning, resource management, time and expense tracking, and project accounting. Combined with Dynamics 365 Finance and Supply Chain Management, it creates an enterprise platform that covers the full lifecycle of construction projects. The integration with Microsoft 365 (Teams, SharePoint, Power BI) provides collaboration and analytics capabilities that are natural for organizations already invested in the Microsoft ecosystem.

The Power Platform (Power BI, Power Automate, Power Apps) extends the platform's capabilities, enabling construction firms to build custom field applications, automate approval workflows, and create project dashboards without custom development. The Azure IoT integration supports connected construction scenarios like equipment monitoring, site safety systems, and environmental sensors.

Watch out for: Dynamics 365 Project Operations is not construction-specific. While it provides strong project accounting and resource management, the construction-specific features (AIA billing, retainage, union payroll, subcontractor compliance, equipment fleet management) require ISV solutions from Microsoft partners. The quality and depth of these partner solutions varies. Evaluate the complete solution (Dynamics + partner add-ons) as a whole, not just the Microsoft platform.

Infor CloudSuite with LN for Capital Projects

Best for: Large engineering and construction firms focused on capital projects and industrial construction that need integrated project management, procurement, and financial management.

Infor LN (formerly Baan) has a long heritage in project-based manufacturing and capital project management, and its CloudSuite packaging brings these capabilities to the cloud. The project management module handles large-scale capital projects with multi-level WBS, earned value management, project budgeting, and resource planning. Integration with Infor's procurement and financial modules provides end-to-end project lifecycle management.

For engineering, procurement, and construction (EPC) firms and industrial contractors, Infor LN's combination of project management and manufacturing capabilities is particularly relevant. Organizations that manage fabrication shops alongside field construction operations can run both in a single system.

Watch out for: Infor LN's construction capabilities are more oriented toward capital projects and industrial construction than toward general building construction. If you are a general contractor building commercial or residential projects, the system's strengths in project-based manufacturing may not be relevant. The consulting talent pool for Infor LN in construction is limited, and implementations can be complex and lengthy.

Essential Construction ERP Capabilities

Construction ERP requirements differ so fundamentally from other industries that evaluating a construction system against a generic ERP checklist will miss the most important capabilities. Here is what actually matters for contractors.

Job Costing and Work Breakdown Structure (WBS)

The foundation of construction financial management. The system must track costs at multiple levels: project, phase, cost code, and cost type (labor, material, subcontractor, equipment, overhead). Real-time cost-to-budget comparison, cost-at-completion forecasting, and cost code variance analysis should be standard. Evaluate the granularity and flexibility of the WBS structure, as every construction company organizes cost codes differently.

AIA / Progress Billing

Native support for AIA G702/G703 billing format, including schedule of values, percentage-of-completion by line item, stored materials billing, retainage calculation (both standard and variable retainage), and proper document formatting. The billing module should also support unit-price billing, time-and-materials billing, and cost-plus billing for different contract types.

Subcontractor Management and Compliance

Centralized subcontractor database with contract management, insurance certificate tracking (with expiration alerts), lien waiver management (conditional and unconditional), certified payroll compliance verification, and safety prequalification. The system should automate subcontractor payment application processing and provide visibility into subcontractor commitments across all active projects.

Change Order Management

Structured workflow for change order initiation, cost impact analysis, owner approval, and integration with billing. The system should track change orders from initial identification through pricing, approval, and billing, with visibility into pending change orders and their impact on project budget and profitability. Field-initiated change requests that flow to estimating and project management for review are essential for preventing revenue leakage.

Equipment Management and Allocation

For contractors with equipment fleets, the ERP should track equipment by unit, manage preventive maintenance schedules based on hours or mileage, calculate internal equipment rates for project cost allocation, track fuel consumption, and provide fleet utilization analysis. The system should support the own-versus-rent analysis that informs capital equipment investment decisions.

Field Reporting and Mobile Access

Daily field reports, labor time entry, material receiving, safety inspection documentation, and photo documentation should all be capturable from mobile devices on the jobsite and flow directly into the ERP. Offline capability is important because construction sites often have poor connectivity. The reduction of paper-based field processes is one of the highest-ROI improvements in construction ERP.

Safety and Compliance Tracking

OSHA incident reporting, safety meeting documentation, tool-box talk tracking, equipment inspection records, and safety training certifications should be managed within or tightly integrated with the ERP. For prevailing wage projects, certified payroll generation (WH-347 forms) with correct wage rate application by trade classification and jurisdiction is critical.

Bid Management and Estimating

While many contractors use dedicated estimating software (Sage Estimating, HCSS HeavyBid, ProEst, PlanSwift), the integration between estimating and the ERP is important. The original estimate should flow into the ERP as the project budget, creating the baseline for cost tracking throughout the project lifecycle. Without this integration, the estimate and the actual project budget exist in different systems, making variance analysis difficult.

Retainage Tracking

Retainage (typically 5-10% of each progress payment withheld until project completion) must be tracked separately for both receivables and payables. The system should manage retainage billing, retainage release upon substantial completion, and the aging of retainage balances. For contractors managing hundreds of active subcontracts, subcontractor retainage payable tracking and release is a significant administrative function.

Multi-Entity Project Consolidation

Large contractors operating through multiple legal entities (for insurance, bonding, licensing, or tax purposes) need to consolidate project performance across entities while maintaining legal entity separation for financial reporting. The ERP should support inter-entity transactions, cost allocation across entities working on the same project, and consolidated project reporting regardless of which entity holds the contract.

Construction ERP Cost Ranges

SMB Contractors ($10M-$250M Revenue)

• Total First-Year Investment: $30,000 - $250,000
• Software Licensing: $15,000 - $100,000/year (cloud subscription) or $30,000 - $200,000 (perpetual license)
• Implementation Services: $15,000 - $150,000 (typically 1-1.5x annual software cost)
• Ongoing Annual Costs: Subscription renewal plus 15-20% for support and maintenance

Enterprise Contractors ($250M+ Revenue)

• Total First-Year Investment: $500,000 - $5,000,000+
• Software Licensing: $200,000 - $2,000,000+/year
• Implementation Services: $300,000 - $3,000,000+ (typically 1.5-3x annual software cost for complex global implementations)
• Ongoing Annual Costs: $200,000 - $1,500,000+ including subscription, support, and managed services

Construction-Specific Cost Considerations

Construction ERP costs are influenced by factors unique to the industry: number of active projects, number of legal entities, complexity of union payroll (multiple unions, multiple jurisdictions), number of active subcontractors, equipment fleet size, and the degree of field mobility required. A specialty subcontractor with a single office and 50 employees will be at the low end. A multi-state general contractor with 500 employees, a large equipment fleet, union payroll, and certified payroll requirements will be at the higher end of the SMB range.

Frequently Asked Questions

Why can't we just use QuickBooks for our construction company?

QuickBooks (and other generic accounting software) fundamentally lacks the construction-specific capabilities that contractors need. QuickBooks does not natively support job costing at the phase and cost code level, AIA billing, retainage management, subcontractor compliance tracking, change order management, equipment costing, or certified payroll. Some contractors manage small operations on QuickBooks with extensive workarounds and supplementary spreadsheets, but this approach breaks down as the company grows past approximately $5-10M in revenue. The transition from QuickBooks to a construction ERP is one of the most common and highest-ROI technology investments a growing contractor can make.

How is construction accounting different from regular accounting?

Construction accounting differs from standard accounting in several fundamental ways. Revenue recognition follows percentage-of-completion or completed-contract methods rather than simple accrual. Job costing requires tracking costs at the project/phase/cost-code level rather than just GL accounts. Retainage creates unique receivable and payable tracking requirements. AIA billing format is specific to the industry. Work-in-progress (WIP) schedules are critical for financial reporting and bonding. Joint venture and consortium accounting for large projects has unique requirements. And the treatment of overbillings and underbillings (a concept that does not exist in most industries) is central to construction financial management.

Should we get a construction-specific ERP or a general ERP with add-ons?

For general contractors and heavy civil contractors, a construction-specific ERP (Sage 300 CRE, Viewpoint Vista, Foundation, CMiC) is almost always the better choice. The depth of construction-specific functionality in purpose-built systems is difficult to replicate with add-ons to generic platforms. For engineering firms, environmental consultants, and specialty contractors where project accounting is more important than construction-specific billing and compliance, a general ERP with strong project accounting (NetSuite, Acumatica, Dynamics 365) may be viable. The deciding factors are typically AIA billing complexity, union payroll requirements, equipment fleet management needs, and the number of active subcontractors managed.

How do we integrate our estimating software with ERP?

The estimate-to-budget integration is one of the most valuable integrations in construction technology. The approach depends on your estimating software and ERP. Some combinations have native integrations (Sage Estimating with Sage 300 CRE, HCSS HeavyBid with Viewpoint Vista). Others require middleware or custom integration. The key data elements to transfer are: WBS structure, cost code budgets, resource loading, and schedule milestones. The integration should be repeatable, as estimates are often revised multiple times before a project is awarded and budgeted. Avoid one-time manual data re-entry of estimates into the ERP, as this creates errors and discourages budget updates.

What is a WIP (Work in Progress) schedule, and why does my ERP need to produce it?

The WIP schedule is arguably the most important financial report in construction. It compares actual costs incurred to date against the estimated cost at completion for every active project, calculates the percentage of completion, and determines whether each project is overbilled (you have billed more than earned) or underbilled (you have earned more than billed). Overbillings and underbillings flow to the balance sheet and have significant implications for bonding capacity, banking covenants, and true financial position. Your construction ERP must produce accurate WIP schedules automatically, or your accounting team will spend days each month producing them manually in spreadsheets.

How do we handle multi-state operations for payroll and taxes?

Construction companies frequently operate across state lines, which creates complexity in payroll tax withholding, workers' compensation insurance, and prevailing wage compliance. Your ERP must support employee work location tracking (which may change weekly for field workers), state-specific tax calculation, reciprocal tax agreements, and state-specific workers' compensation rate application. For contractors doing prevailing wage work, the system must also maintain wage rate tables by jurisdiction and trade classification and generate certified payroll reports (WH-347) for each applicable jurisdiction.

What is retainage, and why is it so important in construction ERP?

Retainage is the portion of each progress payment (typically 5-10%) that the owner withholds until the project is substantially complete. Retainage exists at multiple levels: the owner retains from the general contractor, the general contractor retains from subcontractors, and sometimes the subcontractor retains from sub-subcontractors. Your ERP must track retainage receivable (what is owed to you) and retainage payable (what you owe to subs) separately from regular receivables and payables, manage retainage release upon substantial completion or final acceptance, and report retainage balances accurately on the balance sheet. Mis-management of retainage can distort financial position and create cash flow problems.

How long does a construction ERP implementation typically take?

For SMB contractors with 20-75 users implementing a construction-specific ERP, expect 3-9 months from project kickoff to go-live. The timeline depends on complexity: a specialty subcontractor with straightforward job costing and billing may be on the shorter end, while a general contractor with AIA billing, union payroll, equipment management, and multi-entity reporting will be on the longer end. Enterprise implementations for large contractors typically run 12-24 months. The critical success factor is dedicating senior construction accounting staff to the project; construction ERP configuration requires deep knowledge of construction financial processes, not just general IT skills.

Should we integrate ERP with our construction project management software?

In most cases, yes. Construction project management platforms (Procore, PlanGrid, Autodesk Build, CMiC project management) handle field execution workflows: RFIs, submittals, daily logs, photo documentation, and punch lists. Construction ERP handles financial management: job costing, billing, payroll, and accounting. Integrating the two ensures that field activity data (time, material deliveries, subcontractor daily quantities) flows into project cost tracking without manual re-entry. The Procore-to-ERP integration ecosystem is the most mature, with connectors available for most major construction ERPs.

Can construction ERP help with our bonding requirements?

Absolutely. Surety bond underwriting relies heavily on a contractor's financial statements, WIP schedule, and backlog reporting. A construction ERP that produces accurate, timely financial statements with properly calculated overbillings/underbillings, a detailed WIP schedule showing estimated costs at completion, and a backlog report showing committed future revenue gives your surety confidence in your financial controls. Many contractors have directly increased their bonding capacity by implementing construction ERP because the surety could see accurate financial data rather than the rough estimates that manual processes produced.

Start Building Your Construction ERP Requirements

Construction ERP selection is one of the highest-stakes technology decisions a contractor makes. The wrong choice can cost hundreds of thousands of dollars and years of productivity. The right choice provides a financial management backbone that supports growth, profitability, and competitive advantage.

Our ERP Functional Requirements tool helps contractors build a structured requirements document covering job costing, billing, subcontractor management, equipment management, payroll, field reporting, and financial management. The document is organized by functional area and weighted by priority, ensuring that construction-specific requirements receive appropriate emphasis rather than being buried in a generic ERP evaluation.

Build Your Construction ERP Requirements Document

For contractors, the requirements gathering process should heavily involve your controller or CFO, your senior project managers, your payroll administrator (if you have union or multi-state payroll), and your equipment manager (if you own a significant fleet). These stakeholders understand the daily operational reality that the ERP must support. A construction ERP selected primarily by IT without deep involvement from construction operations and accounting professionals will almost certainly miss critical requirements.