Step-by-Step Guide: How NetSuite Benefits Construction Companies
Table of Contents
Introduction
The construction industry faces a variety of challenges while dealing with multiple projects. Consequently, each project, with its own set of intricacies, demands meticulous planning and risk management. However, the absence of a unified platform and the reliance on many tools can create a precarious situation, jeopardizing project delivery timelines and profitability.
NetSuite ERP for construction companies emerges as a game-changer, positioning itself as one of the best construction management software solutions. By providing a centralized platform, it eliminates inefficiencies, streamlines workflows, and enhances real-time decision-making.
In this article, we will explore how NetSuite Erp for construction companies can streamline your business processes, offering a unified solution that enhances project delivery timelines and profitability, thus setting a new standard in construction project management.
Oracle NetSuite For Construction: Job Breakdown and Project Overview
Large construction projects present unique challenges, often spanning multiple accounting periods or even years. This extended timeframe is not limited to large projects; even smaller projects can face delays due to unforeseen issues like raw material shortages or adverse weather conditions. These delays and extended periods pose significant challenges for contractors in financial management.
However, the use of NetSuite ERP for construction companies offers a robust job breakdown capability. This is crucial for better planning, forecasting, documenting cash flow, etc. It can help account for all known and even uncertain elements involved in a project by basing the planning process on the smallest building block, i.e., the project task.
This makes planning and cost estimation more reliable. When projects are planned to use this bottom-up approach, it becomes easier to implement budgetary controls and avoid scope creep.
With its advanced capabilities, NetSuite stands out as one of the best construction software solutions, enabling contractors to manage projects efficiently while maintaining financial stability.
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Here’s how users can achieve a 360-project overview in real-time.
Cost Estimation and Change Orders:
For construction projects, cost estimation is a complex process. NetSuite for Construction companies is specifically structured to ensure that all cost components are meticulously accounted for in such projects. Based on the nature of the contract, these components may include but are not limited to:
- Materials- based on Internal or external cost
- Labor- Based on different rates for different resources
- Assets- Depreciation for assets deployed on-site
- Expenses- Employee and other expenses
- Sub-contractors’ costs
Cost estimation based on individual activities or work packages will bring maximum accuracy.
Moreover, this works seamlessly with change orders, too. You can easily create estimates for Change Orders and track and report on them. Tracking changes is very easy as you can access all the change orders from a single.
For more insights, read Engineering Change Order in NetSuite.
Project Management:
Project management can become easier if managers can access all required tools on a single platform. This helps avoid dealing with multiple worksheets and different management and reporting tools. Oracle NetSuite for construction offers the following features, which are completely integrated for reporting:
- Pre-configured project templates to automate project creation
- Work Break-down Structures
- Gantt Charts
- Timesheet tracking and approvals
- Project-related operating expenses and approvals
- Communication and collaboration: All documents and team communications are linked with projects
- Plan, request, and assign resources
- Task, milestone statuses, and reminders for due or overdue tasks
- Time and Cost controls
This will get you a powerful and interactive dashboard with real-time data to demonstrate the project’s performance on a single screen.
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Budgeting and Financials:
You can leverage multiple budgets to control costs and report on different forecasting levels against actuals. Budgets can be created for project tasks up to an elementary level. This can help provide in-depth insight into project performance in terms of finance. These financials (costs and revenues) can be reported and compared at activity and job levels.
Isn’t it great that you can see profitability for each project at any point in time without running complex reports? With the powerful NetSuite Construction ERP, we can provide this and many other dashboards and reports.
A lot of key configurable metrics, including but not limited to the following, can be used for financial and non-financial reporting and analytics:
- Budget vs. Actuals
- Contracted value vs actuals
- Earned Value
- Cost overruns
- WIP
- Over/underbilling
- Activity and cost-based completion
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Request a DemoRevenue and Billing:
NetSuite offers very comprehensive and flexible revenue management for construction projects. It can help you define different revenue policies for different types of projects. You can automate revenue and billing as per your requirements. It offers billing and revenue management policies based on the following:
- Job completion percentage
- Periodic, i.e., fixed time-based recurring
- Time and material
Furthermore, you can group multiple invoices into one invoice while retaining details for individual invoices. This can help clear backlogs and avoid sending multiple invoices to your clients, which can sometimes be confusing.
Learn more about Managing Your Financial Segments in NetSuite here!
Conclusion
In conclusion, NetSuite ERP for construction companies offers all the features and tools to help you better plan, execute, and manage construction jobs. As a top construction management software, its reporting capabilities provide all the visibility required to steer resources on a job, reduce cost overruns, and avoid scope creep.
Do not leave your ERP implementation to chance. Get in touch with AlphaBOLD’s Oracle NetSuite certified experts and propel your businesses towards success.
Do not leave your ERP implementation to chance. Get in touch with AlphaBOLD’s Oracle NetSuite certified experts and propel your businesses towards success.
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