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Unlocking Stability and Growth with Advanced Construction ERP Solutions

In the construction industry, rising labour and material costs aren’t just temporary setbacks – they’re major threats to financial stability and profitability. According to the Construction Industry Federation’s Construction Outlook Survey for Q1, two-thirds of respondents in Ireland reported increased labour costs, and 60% saw a rise in raw material costs. With multiple projects on the go, a lack of visibility into actual profit and loss due to these escalations can spiral into uncontrolled margin erosion. 

Margin erosion happens when project costs exceed original estimates, but revenue stays fixed due to contract terms. This is becoming more common with volatile material costs and unpredictable labour availability. Traditional project management tools often can’t provide the real-time, actionable financial data needed across multiple contracts. 

John Coghlan, Director of FullClarity, puts it plainly: “In today’s fast-paced market, visibility is key. Without real-time insights into cost fluctuations and their impact on each project, companies are navigating blind. This jeopardises both project profitability and the overall financial health of the enterprise.” 

Leveraging Construction for NetSuite can clarify these challenges, aiding proactive decision-making and financial stability. 

The Power of Automation in Construction Management 

Automation is crucial in combating margin erosion. Automated Enterprise Resource Planning (ERP) systems provide real-time data analytics for quick, informed decisions. These systems track cost changes at the contract level and compile data across projects, offering a comprehensive view of financial health. Real-time insights allow for proactive adjustments to project management strategies, maintaining profitability and significantly reducing margin erosion. 

Integrated ERP Addresses the Challenges 

Systems like Oracle NetSuite connect seamlessly with Construction for NetSuite, and offer robust tools tailored to the industry’s needs. NetSuite provides a unified platform where all financial, customer, and project data is accessible 24/7 and always up-to-date. This allows for immediate adjustments in project management and procurement strategies, aligning them with current market conditions. Construction for NetSuite enhances this with construction-specific functionalities. 

The benefits of these integrated systems include:  

Real-Time Cost Monitoring: Project managers can instantly compare current and projected costs, allowing for swift interventions. 

Automated Alerts: Alerts for budget overruns or sudden material price increases ensure no cost escalation goes unnoticed. 

Enhanced Forecasting Tools: Improved data collection and analysis facilitate more accurate forecasting, helping firms avoid underquoting on future projects. 

Consolidated Financial Reporting: Integrated financial data lets firms quickly assess the profitability of individual projects or the entire portfolio. 

A Robust Cloud-Based Construction Management Solution 

Construction for NetSuite is a robust, cloud-based construction management solution built on Oracle NetSuite, the world’s #1 cloud ERP platform. Seamlessly integrated, it combines world-class accounting designed for construction with powerful job costing. This solution adjusts to your best practices while providing a “single source of truth” for making the best decisions. 

Built natively in NetSuite, Construction for NetSuite is 100% natively integrated with your existing NetSuite products. All activity is handled in real-time and with full visibility, offering a seamless experience. 

If you need accurate, up-to-date project reports on demand and wish your ERP system automated your processes, Construction for NetSuite is the groundbreaking cloud-based solution to help solve your issues. Our experts understand the unique challenges associated with managing a construction company and have crafted this solution with those challenges in mind. 

Embracing Advanced ERP Solutions for Future Success

OSSM’s partnership with NetSuite brings forward-thinking approaches to construction management, enabling companies tackle the problem of shrinking profit margins. In adopting smart construction systems, companies can manage today’s complexities and challenges while being prepared for the industry’s future changes. 

Rising labour and material costs don’t have to spell disaster for construction and fit-out companies. With strategic investments in ERP systems like Oracle NetSuite, firms can regain control over their margins and steer their projects toward profitability and success. This proactive approach to financial management in construction is a strategic advantage in the competitive industry landscape. 

Discover the Power of Construction for NetSuite – Download Our Brochure 

We’d love to share our brochure on this very topic. You’ll learn how Construction for NetSuite can track all your costs and analyse estimates in real-time, giving you better control of your project’s profitability.  

Download your copy here.  

About the Author

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John Coghlan

John Coghlan, Co-Founder and Director of FullClarity, has extensive experience in the building and construction industry. Growing up in the construction sector, he has a deep-rooted understanding of its intricacies. His expertise as a consultant is well-regarded in the industry.


Protecting Margins Through Increased Efficiencies

Protecting margins through increased efficiencies is a critical aspect of the construction industry. With tight profit margins and tough operating conditions, construction companies are always on the lookout for ways to improve and grow. Let’s dive into how Construction for NetSuite can boost productivity for construction businesses.

Empowering CEOs with Real-Time Visibility, Benchmarking, and Drill-Down Capabilities

Real-Time Data: Dashboards give CEOs real-time visibility into important business metrics like project performance, finances, resource use, and operational efficiency. This allows them to monitor key indicators at a glance and make informed decisions promptly. They can use this information to evaluate strategic initiatives, allocate resources effectively, prioritise projects, and reduce risks.

Benchmarking and Comparison: With Construction for NetSuite dashboards, CEOs can compare current performance to historical data, industry standards, or goals they’ve set. This makes it easy to track their organisation’s development over time and pinpoint areas where it is succeeding or failing.

Drill-Down Capability: Construction for NetSuite dashboards allow CEOs to drill down into specific KPIs or areas they’re interested in, helping to spot areas for optimisation or intervention.

Let’s Consider the Benefits for Project Managers

Mobile Accessibility: Construction teams can access project information and carry out tasks remotely from the field using Construction for NetSuite, which is available through web browsers and mobile devices. This mobile accessibility increases project efficiency overall, simplifies real-time decision-making, and improves responsiveness.

Comprehensive Project Management: Construction for NetSuite provides a centralised platform for managing all aspects of construction projects, from estimates and budgets to schedules, subcontractor management, change orders, and progress tracking.

Real-Time Financial Visibility: Construction companies can see real-time project financials, including expenses, revenue, and profitability, with Construction for NetSuite. This lets project managers take proactive measures to avoid financial risks or budget overruns and make more informed decisions.

Flexibility and Scalability: Whether you’re tackling small or big projects, Construction for NetSuite is flexible and can grow with your needs. Its flexible architecture makes it easy to customise or integrate with external applications.

Not Forgetting the Administrative and Financial Team – How Does It Benefit You?

Retention automation: Making things more efficient is key here. With Construction for NetSuite, you can automate claim and retention calculations. This saves time and resources, boosts accuracy, and ensures payments are right on schedule based on project milestones and contract terms. It also cuts out human errors.

Vendor and Contract Management: Construction for NetSuite includes features for managing vendors, contracts, and procurement processes. It also provides a portal for submitting bids and documents. Financial teams can easily track vendor performance, manage contracts and purchase orders with a few clicks, and streamline buying, which saves money and makes things smoother.

Integrated Financial Management: Construction for NetSuite integrates financial management with project management, procurement, and other business functions. This gives finance teams a complete view of performance across projects, departments, and the whole organisation.

Compliance and Controls: With Construction for NetSuite, businesses can stay on top of financial regulations and internal controls by providing audit trails. This gives finance teams peace of mind that their data is accurate, secure, and compliant with relevant regulations and standards.

An Illustrative Example

Take a construction company that is working on multiple projects simultaneously, each with its retention requirements and deadlines. Without automation, the finance and accounting team would need to manually calculate retention amounts for each project, track payment milestones, and follow up with clients to claim back the retained funds upon project completion. This process could be prone to errors, delays, and inefficiencies, ultimately impacting the company’s bottom line.

Now, consider the same scenario with automation in place. With the Construction for NetSuite product which handles retention calculations and claiming, your construction company can automate these processes from start to finish. The system can automatically generate accurate retention schedules for each project, track payment milestones in real time, and generate invoices or claims for retained funds upon project completion. This not only saves time and reduces the burden on administrative staff but also ensures that the company receives its rightful payments without delay.

To conclude, the construction industry is ripe for technological disruption, and automation presents an enormous opportunity for companies to protect their margins through increased efficiencies. By leveraging automation to streamline the processes mentioned above such as retention calculations and claims, construction companies can unlock significant value, reduce costs, mitigate risks, and ultimately drive sustainable growth. With automation comes the potential to revolutionise the way we do business and propel the construction industry forward into a more profitable and prosperous future.

About the Author

Picture of Anna Carolan

Anna Carolan

Anna is an experienced professional in project management and change management roles, with a focus on IT systems development and implementation. Currently serving as the Project Consultant at OSSM, Anna assists in managing and implementing Enterprise Resource Planning (ERP) systems for large organisations and small-to-medium-sized companies.


Constructing Success in 2024: How Automation and Cloud ERP Revolutionise Construction

As we step into 2024, the construction and fit-out industries are at a turning point. They face the challenge of meeting rising demands for efficiency, sustainability, and innovation while handling the pressures of significant sector growth. The Construction Industry Federation predicts a 4% increase in overall construction investment in Ireland in 2024, with residential, non-residential, and civil engineering sectors all expected to expand. This highlights the need for companies to keep up with these demands and set new standards of excellence in project delivery.

However, navigating these challenges is increasingly complex. A recent analysis by The Northern Ireland Audit Office (NIAO) of 77 projects across various departments found that Northern Ireland infrastructure projects are projected to cost 44% more than planned, mainly due to external factors like the Covid-19 pandemic and inflation.

The Vital Role of Automation

In the face of these challenges, automation emerges as a beacon of hope. It promises to tackle the industry’s inefficiencies by streamlining operations, improving accuracy, and providing real-time insights. A study by McKinsey estimates that new digitally-enabled automation and artificial intelligence could uplift GDP by €550 billion from 2016 to 2030 in nine European “digital front runner” economies, including Ireland.

The Dangers of Technological Stagnation

Ignoring the digital revolution in construction management carries significant risks. Companies that stick to outdated methods not only jeopardise their immediate project success but also their long-term sustainability. For instance, a study by Software AG which surveyed more than 2 000 decision makers from the UK, US, Germany and France found that companies need more or better tools in order to understand the success of sustainability initiatives, with over 36% saying that they don’t have them. This highlights the broad impact of resisting technological advancement.

The Urgency for Change

Alarming statistics underline the urgency for transformative project management tools in the construction sector. Many UK projects, for example, face the problem of exceeding their initial budget, resulting in unexpected additional costs. This pervasive inefficiency crisis calls for more dependable, automated solutions.

The Power of Cloud Computing and Automation

Cloud computing and modern automation tools offer a powerful solution to the industry’s challenges. This combination provides a scalable platform that enhances the efficacy of automated tools, facilitating seamless project management and operational visibility across the enterprise. NetSuite and FullClarity’s Construction for NetSuite is a prime example of this solution.

Construction for NetSuite: The Future-Ready Solution

This unmatched solution brings construction automation directly into NetSuite’s ERP/Financials and CRM, cloud platform. It transforms NetSuite into a holistic construction management tool, tailored to meet the construction industry’s unique requirements.

Andrew Coghlan, CEO of FullClarity, explains, “Construction for NetSuite is designed to address the unique demands of the construction sector, combining tradition and innovation to navigate modern construction with ease and efficiency.”

Empowering the Construction Industry for Tomorrow

Integrating automation and cloud-based systems is not just a trend but a foundational shift in construction management. The Construction for NetSuite solution offers a path to overcoming the industry’s challenges and positions construction and fit-out companies for success in an increasingly competitive and complex landscape. With such technology, these companies are well-equipped to build a future of efficiency, profitability, and innovation.

Contact OSSM for a no-obligation consultation with one of our Construction Management experts.

About the Author

Picture of John Coghlan

John Coghlan

Andrew Coghlan is a chartered accountant with over 30 years of management and business experience in the UK and Australia. He has worked for big corporates, small start-ups, and everything in between. Andrew is also involved in the not-for-profit sector, holding a number of charity board positions in Australia and the UK. His specialties include Financial Accounting, Business Management, and Business Strategy.