Dodge released a new research report: The Value of ERP for General and Specialty Trade Contractors. Jeff Weiss, chief revenue officer at CMiC, is here to break down the findings:
How does the rate of ERP adoption in construction compare to that of the adoption of other technologies?
While ERP systems have historically been adopted more slowly than other technologies, the pace of construction ERP adoption has accelerated considerably since 2020, driven by several factors that have shifted industry priorities and capabilities.
For starters, labor shortages across the construction sector have created an urgent need for efficiency gains. Companies are increasingly seeking technological solutions that streamline operations and achieve more with leaner workforces. The pandemic further catalyzed this transformation by necessitating remote work capabilities, forcing even traditional contractors to embrace digital platforms for project management, communication and financial oversight.
Cloud-based solutions have also made ERP implementation much more accessible by eliminating high upfront costs, infrastructure complexity and extended deployment period. Lastly, as younger workers join construction teams, they bring digital fluency, establishing a new standard.
How have ERP solutions evolved over the last five years? How are they expected to grow again over the next five?
Construction ERPs have fundamentally transformed from 2020 to 2025, transitioning from on-premise to cloud-native architectures with mobile-first designs enabling full smartphone and tablet functionality. Platforms now feature open APIs for seamless specialty software integration, real-time dashboards delivering live project data and predictive analytics, and redesigned user interfaces that significantly reduce training requirements.
AI integration in construction ERPs has revolutionized operations through predictive analytics for project completion and budget forecasting, document intelligence enabling automated invoice processing and contract analysis, and operational AI powering intelligent scheduling and procurement suggestions. Advanced features include computer vision for progress monitoring, natural language processing for executive reporting and AI chatbots for data retrieval.
Looking ahead, emerging capabilities will include IoT sensor integration, AI-driven safety compliance monitoring and automated regulatory reporting. The most significant shift will be moving from reactive reporting to proactive, predictive insights that help companies anticipate and prevent problems.
Finally, expanded integration capabilities have significantly enhanced software functionality, delivering both deeper specialization and broader cross-platform connectivity.
Of the 75% of contractors surveyed using ERP, what are they “underleveraging” or missing out on?
Seventy-five percent of contractors aren’t getting the most out of their project controls application—the central hub that connects all other ERP functions. Instead, many firms rely too heavily on separate point solutions rather than using an integrated platform that eliminates the need for multiple project management and accounting systems, along with all the headaches of keeping them connected.
This represents a significantly missed opportunity, particularly for different firm types:
- Enterprise firms can leverage project controls to standardize processes across multiple projects and geographies, maintain strict budget governance and deliver accurate consolidated forecasts to leadership. Large-scale operations benefit from portfolio-level risk management while ensuring consistent cost-control practices across all project teams.
- Mid-market firms gain the ability to scale operations without adding overhead. An integrated platform helps them avoid the inefficiencies of managing multiple systems while accessing enterprise-grade forecasting and cost control tools sized appropriately for their business. This enables them to compete effectively with larger firms while protecting their typically tighter margins
This underutilization drives companies toward expensive point solutions, dramatically inflating their technology costs.
Are there any tips, tricks or hacks to using an ERP effectively?
I recommend starting by standardizing naming conventions for projects, vendors and cost codes from day one, as inconsistent data destroys reporting accuracy. Focus on quick wins first. In other words, implement easiest, highest-impact features to build momentum and create power users who champion adoption across departments.
Map existing workflows before configuration to avoid working with erroneous processes, then automate recurring tasks like invoice approvals and progress billing. Use keyboard shortcuts and bulk operations for faster data entry, while setting up exception reporting that alerts only when action is required. Create role-based dashboards customized to each user’s specific needs and responsibilities. Finally, leverage every available feature to extract maximum value from your ERP investment.
Of the 25% still not using ERP, why not?
Twenty-five percent of construction firms still operate without ERP systems because decision-makers fail to recognize the long-term strategic benefits, viewing these platforms as operational tools rather than transformative business investments. In addition, economic uncertainty has made industry leaders increasingly conservative with technology spending, prioritizing immediate cost management over operational efficiency gains. This fundamentally short-sighted approach ultimately prevents firms from accessing the productivity improvements, enhanced financial visibility and competitive advantages that comprehensive ERP platforms deliver
How can ERP companies create buy in?
At the highest level, by creating options.
ERP companies can create buy-in by addressing economic concerns through flexible pricing models and financing partnerships that spread costs over time. Demonstrating value requires industry-specific case studies with measurable results, peer references and onsite demonstrations using prospects’ actual data to show real impact.
Implementation risk can be reduced through pilot projects, guaranteed timelines and comprehensive change management consulting. Executive engagement strategies should target multiple stakeholders with role-specific benefits while hosting networking sessions with existing customers.
Decision makers need to shift the tool-versus-investment mindset by leading with business outcomes rather than features, quantifying hidden costs of manual processes and showing scalability benefits that enable growth without proportional overhead increases. Leveraging industry trends like labor shortages and digital transformation initiatives, combined with strategic partnerships with consultants and accounting firms, creates a comprehensive approach that addresses barriers to adoption.
On the other hand, “Nearly half of GCs/trades without an ERP say they plan to adopt one within two years.” Why this uptick and why now?
Many general contractors are planning significant ERP investments within the next two years, driven by intensifying market pressures that demand operational excellence. Increasing competition across all project sectors has made efficiency gains critical for maintaining profitability, while the growing dominance of a few large players forces smaller firms to leverage technology for competitive differentiation. Additionally, clients are demanding accelerated project delivery timelines, requiring contractors to streamline operations, improve coordination and eliminate inefficiencies that manual processes create. These converging factors have transformed ERP systems from nice-to-have tools into essential infrastructure for survival and growth.
For those just getting into ERPs, where is a good place to start without being intimidated?
For construction companies new to ERPs, the key is to begin with one core function like accounting or project management, using your best-performing project as a pilot to create internal champions. Focus on immediate pain points such as manual invoicing or duplicate data entry rather than comprehensive system overhauls.
Attend industry demos and join user groups to learn from peers, while requesting limited trials from cloud-based vendors to minimize risk. Document current workflows and calculate time spent on manual processes to build internal support for change. Set realistic timelines of 6-12 months for initial implementation and budget for training alongside technology costs.
What are some goals that GCs/trades look to get out of their ERP?
At the highest level, general and specialty contractors pursue ERP solutions to achieve five critical business benefits that directly impact their bottom line and operational efficiency.
First, they seek enhanced real-time project performance tracking capabilities that provide immediate visibility into budget variances, schedule deviations and resource utilization across all active jobs. Second, improved cross-departmental data sharing eliminates information silos, ensuring accounting, project management and field operations work from the same accurate dataset. Third, enhanced collaboration across departments streamlines communication and decision-making processes, reducing delays and miscommunication that plague traditional workflows. Fourth, significant reduction in manual data entry eliminates duplicate work, reduces human error and frees up valuable staff time for higher-value activities. Finally, increased accuracy in estimating new work leverages historical project data and standardized processes to produce more competitive and profitable bids, ultimately driving sustainable business growth.
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