From planning and budgeting to managing subcontractors and invoicing requirements, construction companies must juggle multiple tasks and data sources to ensure everything runs on time and on budget.

One of the most effective ways to address these challenges is by leveraging an integrated Enterprise Resource Planning (ERP) system like NetSuite. This robust, cloud-based solution provides construction firms with a centralized platform to manage financials, project timelines, resources, and much more. Let’s dive into the common challenges faced by construction companies and explore how NetSuite can help.

1. Planning Projects in the Pipeline

Challenge: One of the major hurdles that construction companies face is effectively planning and managing projects in the pipeline. With multiple projects at different stages, it can be difficult to efficiently resource pre-closed-won projects or even monitor task completion on awarded projects. That’s all before getting into managing the delivery of inventory at the right time and place. Construction managers must forecast resource and inventory allocation, manage deadlines, and ensure that potential risks are mitigated.

Solution: NetSuite’s Project Management module provides robust tools for project planning and tracking. It allows construction companies to create detailed project schedules, allocate resources effectively, and maintain visibility into ongoing and upcoming projects. With real-time reporting, decision-makers can evaluate project health and adjust the pipeline as necessary, ensuring that no project falls behind.

2. Custom Invoicing Requirements

Challenge: In the construction industry, customers often have specific invoicing requirements that call for grouping charges in a unique way, displaying additional project level data, or including change order information. Meeting these requirements can be a complex task if using disparate and manual systems, leading to delays, errors, or customer dissatisfaction.

Solution: NetSuite’s flexible Advanced PDF Builder enables construction companies to customize invoices to meet the exact needs of their clients. Whatever the requirements, NetSuite can generate invoices with pixel perfect accuracy, pulling in data from as many sources as needed to ensure construction customers receive the invoice they want. This helps companies streamline their billing processes, improve accuracy, and ensure they meet the unique demands of each customer.

3. Budget Impact from Project Change Orders

Challenge: Change orders are inevitable in construction, and they can be a major source of financial risk if not properly managed. A change order can impact the timeline, budget, and scope of a project, making it critical to track and manage these adjustments in real time.

Solution: NetSuite’s Project Management, Financial, and Workflow Builder modules are designed to work together to ensure that any changes made to a project are approved and accounted for immediately. When a change order is approved, it’s reflected in both the project schedule and the financials, so the budget remains up to date. This integration helps construction managers monitor project costs in real time, providing greater control over financial outcomes and reducing the risk of cost overruns.

4. Managing and Reporting on Work in Progress (WIP)

Challenge: Work in Progress (WIP) reporting is crucial in the construction industry, as companies need real time visibility into a project’s completion percentage based on cost and how much they’ve billed for that comparatively. This requires detailed tracking and the ability to easily pull all relevant data as needed. Without a single source of truth, pulling these reports can prove challenging.

Solution: NetSuite offers a comprehensive solution for WIP tracking, allowing construction companies to monitor project expenses in real time and view a dashboard containing all the backup for the report. The system automatically updates project progress to reflect the true financial status of each project. This allows construction firms to make informed decisions and ensure profitability at every stage of the project.

5. Data Duplication Across Systems

Challenge: Many construction companies use a variety of systems to handle different aspects of their operations. Whether it’s a project management tool, a payroll system, an accounting solution, or a reporting tool, the lack of integration between these systems often results in data duplication, errors, and inefficiencies.

Solution: NetSuite centralizes all key operations in a single, integrated platform. By consolidating project management, financials, payroll, and CRM into one system, NetSuite eliminates the need for duplicate data entry and minimizes errors. This seamless integration ensures that all departments are working with the same accurate data, thereby reducing inefficiencies and increasing productivity.

6. Subcontractor Management

Challenge: Subcontractor management is a critical aspect of construction projects. Construction companies need to track subcontractor performance, ensure timely payments, and manage contracts efficiently. Without an integrated system, subcontractor-related tasks can quickly become overwhelming.

Solution: NetSuite’s Supplier and Project Management modules help construction companies manage subcontractors from contract signing to payment. Subcontractor details, including contract terms, deliverables, and payment schedules, are tracked in real time, ensuring that both parties are aligned on project expectations. By automating subcontractor invoicing and payments, NetSuite reduces administrative burdens and enhances compliance.

The construction industry is filled with challenges; but with the right tools, these companies can overcome them. NetSuite offers a comprehensive, cloud-based solution that integrates all aspects of construction project management, from planning and budgeting to invoicing and subcontractor management. By streamlining operations and providing real-time insights, NetSuite helps construction companies stay on top of their projects, reduce inefficiencies, and ultimately improve profitability.

In today’s competitive environment, having a unified platform like NetSuite can be a game-changer for construction companies looking to improve their operations and deliver successful projects on time and within budget. To further increase support for the construction industry, Caravel supplements the system through its Construction SuiteBundle, which is built directly within the NetSuite environment. It extends its functionality by offering cost code management, change order management, revenue recognition, AIA billing, and much more.

Interested in learning more about how Caravel can help your organization implement and boost NetSuite? Contact us in the form below, and we will respond immediately.