When contractors talk about construction software, they’re typically referring to an integrated accounting, project management and operations type of solution. Companies often handle other areas of their business, such as Human Resources, with a standalone solution or bolt-on construction human resources software systems. Be warned however, this is not a sustainable technology strategy.  Integrating your human resources data with the rest of the data you track and measure is essential for an overall snapshot of the health of your organization.

Integration is Key

Once you’ve chosen an HR solution that seamlessly integrates with the rest of your software modules, you want to make sure it’s specifically designed for managing both people and reporting requirements. That’s where the connection to the rest of your company information becomes so important. With an open database structure, you’ll have maximum flexibility in sorting and reporting HR data, and the integration with your payroll software keeps data synchronized. This synchronization between HR and payroll eliminates double entry for better accuracy, more efficiency and time savings.

Managing People

Your people are your greatest resource and that’s why keeping track of their employee data is so important. Within contemporary HR software, you can store and view information such as interview notes, references, skills, awards, dependents, availability and training. You can manage employment history such as interviews, hiring, leaves, layoffs, and general information like benefits, salary history, rewards, etc. The ability to track all this important data is invaluable since it’s typically otherwise kept in disorganized paper files or difficult-to-navigate spreadsheets. Plus, with the security built into today’s HR software, you have control over who sees what.  

Managing the Details

Then of course, there’s the “other” stuff that so easily gets lost in the HR paper shuffle. With a good HR software solution, you can track drug testing results including date, location, administrator, results and actions. You can access safety history records including OSHA reporting and Workmen’s Compensation and you should be able to schedule and register employees in certification classes straight from the system.

Human Resources software for the construction industry has come a long way from the filing cabinets stuffed with paperwork cluttering up HR offices in every corner of the country. Integrating with your other in-house software systems, your company HR trends, statistics and data can be reported straight to management, OSHA, or anyone by generating a simple report.  With security, fast data access and reporting capabilities regarding your greatest assets, how can it not be a key technology cog in your ERP machine?

This is the eleventh in the Viewpoint Primer series on how technology improves construction productivity. We’d love to hear your stories – good or bad – with a General Ledger in Construction. What are some practices you’ve found that make a difference in your business performance?

When looking for construction billing software, flexibility is the key to keeping your accounting department and more importantly – your customers happy. The reality of today’s complex job billing procedures is that customers often request invoices to be designed a certain way to meet their accounting requirements. Refusing or being unable to meet those standards, could cause a major slowdown in payments and be the real catalyst for not winning their projects in the future.

Billing software for the construction industry has come a long way. In fact, the best options on the market are capable of allowing you to format custom invoices to meet your customer’s requirements, providing percent complete, unit, and T & M billings designed to match construction specific processes. You also need a job billing solution that’s fully integrated with your accounts receivable, job cost and general ledger. This just makes sense for maintaining accuracy and sharing the same information across your accounting disciplines.

Flexibility

So let’s talk more about flexibility and what exactly that means in terms of billing software. The flexibility you’re looking for here is a solution that provides the benefits of optimal customization and billing options for delivering the right invoice for any customer requirement. Ask the provider if their billing software is capable of initializing owner pay estimates based on cost to cost percentage complete, enabling easy retainage or holdback and whether invoices can be formatted with Crystal Reports™. You should also be able to set-up billing options from AIA preprinted forms or custom invoices via Crystal Reports. While it’s mostly about finding the right fit for the way you do businesses and the processes you already have in place, these are just some things to consider around the flexibility of the system before you make the investment.

Job Progress

I’m guessing one of the main reasons you’re considering job billing software is because you want simplicity, a way to save time and a way to streamline how you bill for the work you do. If that’s the case, seek a solution with a one-step process for change orders. You’ll be so happy you did. And so will your Project Managers – and your company executives too.  Look for a one-step process for change orders that automatically flows through to the contract in Job Billing after being entered in either your project management or job cost software – this is why integration is so important.  Once that’s dialed in, you’ll want to make sure you can create bills using industry standard formats, pre-printed forms, or have the ability to design your own invoice forms.

Time and Material Billing

When it comes to time and material billing, flexibility is the word du jour of these billing features as well. If one of your company goals is to compare costs to revenue at the contract or contract item level, you need software with the flexibility to automatically interface T&M invoices across your accounting functions including,  Accounts Receivable, General Ledger and Job Cost. Perhaps most importantly, the system you choose must have the flexibility to create, review, revise, print and re-print contract or Time & Materials invoices as often as necessary.

Don’t Forget the Labor and Equipment and Subcontract Billing

If the construction billing software you’re looking at doesn’t have the flexibility for labor, equipment and subcontract billing, you’re wasting your money. These essential functions need to be built into the capabilities of the system.  You want to be able to bill labor, equipment and materials at cost-plus-markup or at user-defined rates set up in the contract templates. And regarding subcontracts, make sure you’re able to review all subcontracts on a job, edit amounts to be paid, and automatically generate the accounts payable entries.

In a nutshell, seek a job billing solution that’s flexible – when things don’t go as planned the ability to adjust, customize and make changes on the fly is paramount to everything else. What’s your job billing strategy?

This is the tenth in the Viewpoint Primer series on how technology improves construction productivity. We’d love to hear your stories – good or bad – with a General Ledger in Construction. What are some practices you’ve found that make a difference in your business performance?

Viewpoint was named Software Company of the Year at the TechAmerica Oregon 2012 Oregon Technology Awards ceremony on May 9!

Viewpoint beat out Digimarc and Tripwire, the two other formidable finalists, for this year’s award.

Established in 1984 by the Cascade Pacific Council of the Boy Scouts of America, the Oregon TechAwards is the signature event celebrating innovation and technology in Oregon.

That’s a lot of stuff you have out there. Backhoes, bulldozers, cranes and front loaders – and let’s not even get started on the jackhammers, cement mixers and fleet trucks deployed at your jobsites.  The question is, “Do you have a grip on the costs, locations and revenue on those equipment assets?” Technology is available to make sure you’re on top of your investments and whether they’re costing or earning you dollars.

Managing those big toys

Discovering better ways of equipment management is more important than ever since margins are slimmer on projects now than ever before. Not understanding whether it’s time to keep using, to lease or to purchase new equipment can be the deciding factor for profitable jobs.  Leading contractors are finding a quick return on investments by utilizing technology that provides visibility to all company profit centers.  Quite frankly, managing cost and revenue on equipment is an essential part of the construction business these days.

There are a few key things to look for when seeking a software solution to manage your equipment assets. First, make sure the software you choose provides basic location tracking and detailed cost and revenue reporting. Next, make sure a maintenance and work order sub-system is available. Within these benefits, keep your eyes on solutions that allow location tracking for equipment movement in the field, the ability to set-up flexible revenue rates for each piece of equipment and an easy way to view monthly calculations of book depreciation with fixed asset schedules.  If you have those items covered, I’d say you’re in a good position with your equipment management situation.

If it’s time for new equipment, have you considered used?

OK, now let’s chat about that equipment out there. Still using a steam engine? Is that bulldozer doing more dozing than actual work these days? Well, maybe it’s time to think about some new wheels…or tracks I suppose.  Should you buy used equipment or shell out a small fortune for new pieces? I’ve included some knowledge from an older post that should help with navigating the ups and downs of buying used construction equipment.

There’s no way around it. Construction equipment is an expensive but necessary expense for any contractor. Like any other essential tool, the only way a project will succeed is with the right equipment on the job site – but how does a growing construction company purchase the necessary heavy equipment without a big budget for capital expenses? Check out the used equipment market for ideas.

Certainly, if you’ve been in the market for construction equipment during the past few years you’ve explored the many options out there for purchasing these huge pieces of machinery. We’re hearing from more and more companies who are understandably looking for reputable resources to buy used equipment. With that decision comes great rewards in savings but there are inherent risks as well. How do you know if you are getting a good deal and what are some of the best options out there? We thought we’d share some tips to get you started down the right path.

Tips for buying used

Construction equipment gets used and abused more than most motorized vehicles. They’re designed to be tough and to handle just about anything you can dish out. That doesn’t mean they’re infallible. BuyerZone recommends the following guidelines for buying used equipment:

• Try it first – Don’t buy without trying. Even if you trust the seller, know the brand or the model, make sure you still go for a test drive – one that includes digging, dumping, lifting, scraping, pushing, etc.
• Look carefully – Look for rust and rust spot cover-up. Check underneath for leaks and inspect the hoses before and after your test drive.
• Listen carefully – Listen to the engine and hydraulics and be aware of any strain. Do you smell burning oil or electrical problems? Be thorough.
• Buy from established dealers – You’re more likely to have problems if you buy from a dealer that doesn’t focus on construction equipment.

Where to find used equipment

Once you’re ready to make a purchase, there are several options available. Here are some reputable and proven players to consider.

Machinery Trader – Just like the Auto/Truck/Boat Trader publications you remember picking up at the convenience mart, Machinery Trader is the same kind of resource, only now it’s online too. I used to spend hours as a kid looking through Auto Trader and imagining all the Camaros, GTO’s and other Detroit muscle I was going to buy the day I turned 16. You can get the same thrill (well close anyway) looking at backhoes, earth movers and cranes located nationwide, or locally, from brands like Caterpillar, John Deere, CASE, Komatsu, New Holland, etc.  The paper subscription is available for free and you can receive weekly updates in your inbox. The only drawback is that you’re probably dealing with an individual as opposed to dealer or auction house – so be wary, there might not be a warranty.

There are numerous other similar resources out there providing the same kind of service. Popular choices include: EveryMachinery.com, EquipmentTraderOnline.com, equipfind.com, Machinemart.com.

Auctions

Equipment auctions are a fantastic way to score a bargain if you’re savvy at bidding and know beforehand what you want to buy. It’s always best to attend auctions in person if possible to test drive the equipment and examine it up close, but most of the major auctions do have an online option if you just can’t be there. If possible, it is still recommended that you find a trusted associate in the area who can give the equipment you’re eyeing a good screening. Once you’ve decided to go the digital bidding route, you’ll discover that many online auctions such as IronPlanet.com conduct bidding in a fashion similar to eBay – i.e. you have a certain timeframe within to bid and once the time’s up the highest bidder wins.     

For an updated list of used equipment auctions at a location near you or online, there is a comprehensive auction calendar at ConstructionEquipmentGuide.com. You’ll find auction times and locations in just about every state on this site from major auction organizers like Richie Brothers ,Wolfe Industrial Auctions and Alex Lyon & Sons .

This list of used construction equipment options only scratches the surface of what’s out there – and of course there’s always the person-to-person sale in your local community. The bottom line is that the opportunity to save money on used equipment is available if you’re willing to take the time search, compare and inspect the merchandise before pulling the trigger. Happy hunting.

This is the ninth in the Viewpoint Primer series on how technology improves construction productivity. We’d love to hear your stories – good or bad – with a General Ledger in Construction. What are some practices you’ve found that make a difference in your business performance?

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For most people, unless you live in the accounting world, talking about the General Ledger might not be the most scintillating of topics, but it’s a pretty important part of your business. The GL is where everything financial in your business comes together. And we all know how important sound finances are for building a growing, sustainable company.

The GL provides a detail glimpse into your company financials. A messy GL could be a sign of bigger issues: things like poorly managing transactions and budgets, a lack of transparency, and understanding into your business’ performance. A messy GL takes time to reconcile and prevents you from knowing sooner of any potential issues your company faces which might let you take corrective action before a crisis. Keeping your GL clean makes it easier for auditors to review your financials and give you a clean bill of health.

A clean General Ledger starts with the data feeding it.

If your Accounts Payable, Accounts Receivable and Job Cost information is incomplete or inaccurate, it’s compounded in GL. The accounting department has to do the clean-up and you lose the detail and ability to research changes in the AP, AR, and Job Cost modules when corrections are done by accounting at the GL level. That makes it a lot tougher to back into the issues that might be causing problems. Not only for auditors, but investors and creditors gain confidence in a company that takes pride in keeping its financial house in order. That can pay serious dividends when you need funds to bridge the gap on a big project or to help grow your company.

It’s the classic garbage-in, garbage-out scenario, so you want to make sure all of the accounts and components feeding data into your GL are as clean as possible. This starts with having the right technology in place to capture the data from Document Management to scan and save invoices and correspondence to an easy means to collect information from all areas of your company. You’ll also want to look at how easy it is to re-organize your General Ledger when you outgrow it. Some systems don’t let you rearrange accounts or easily add new ones, making it tougher to manage change.

Naturally all this data doesn’t do you any good unless you can easily access and report out on it. You need the ability to create comparisons and analyze budgets in the past as well as the future. And you want to be able to easily close out each month to move on to the next. It’s all about access to the right information at the right time.

This is the eighth in the Viewpoint Primer series on how technology improves construction productivity. We’d love to hear your stories – good or bad – with a General Ledger in Construction. What are some practices you’ve found that make a difference in your business performance?

Hiring staff, posting ads, interviewing candidates, managing benefits, maintaining disciplinary reports, mediating disputes, holding seminars and hosting new hire orientations – these are just a few tasks that Human Resources professionals tackle every day. The HR folks at your construction company are responsible for even more – safety history, drug tests and skill tracking to name just a few. If you don’t have a modern, integrated solution in place to manage all these unique tasks – especially one that integrates seamlessly with your payroll software, you’re taking risks with your employees and their critical work history that could have a big impact on protecting your business.

Whatever you’re using to manage your employee records, make sure it’s designed in an open database structure for flexibility in sorting and reporting data. You also want solution that stores and organizes all personnel data from the first interview through a hire’s entire employment with fast, accurate reporting for any stakeholder requiring employee information. The employee data you’re storing should be comprehensive to protect you from anything that might come up down the road. From a pre-hire standpoint, keep track of interview notes, references, education, specific skills, awards, dependents, availability and relevant employment history. Once the employee is on board make sure you’re storing information related to employment history such as dependents, benefits, salary, drug testing, OSHA reporting/safety records, certifications etc. While tracking this data may seem obvious, without organized human resources software, this information can be easily lost in a flurry of accumulating paperwork.

Perhaps just as important as data storage is the time your team can save. A worthy human resources software solution should eliminate the double entry burden by synchronizing data between HR and Payroll. The information will automatically populate both areas so that reporting is accurate across the board. Speaking of reporting – simple, customized reporting capabilities can be a massive time saver as well. Finally, you want to make sure that your software has built-in security to prevent unauthorized access to confidential information. Ask your provider if their solution can control security in a granular way such as by form, tab, report and employee. This feature is critical to maintaining the safety and confidentiality of your employees and the organization at large.

Let us know what and how you’re using construction human resources software for managing employee records and human resources data. Start a discussion.

This is the seventh in the Viewpoint Primer series on how technology improves construction productivity. We’d love to hear your stories – good or bad – with construction human resources. What are some practices you’ve found that make a difference in your business performance?

When you have piles of cash, cash management becomes a fun exercise. Apple, for example, is likely enjoying the fact they have nearly $100 Billion in cash reserves they get to figure out how to use.

But for most, cash management is a matter of making sure there’s more coming in then going out – and controlling exactly how it goes out the door. Your cash flow makes or breaks your business.

Certainly the first rule of construction cash management is controlling spending.  It’s easy to let expenses grow when you’re focused on satisfying your demanding clients. If you don’t have a solid method of tracking expenses on each project, you’re at risk. Sometimes you have to ‘invest’ in a project and your business to achieve that next level. Managing cash flow is key to keeping the ship upright.

In the pursuit of this growth, it’s likely that you have, or will have, acquired debt. And once you have it, you have to manage it or it will manage you. That’s not a fun place to be and it can limit your options down the road. Through effective cash management, you’ll be much smarter about managing debt.

Make sure you have the right banker. Look across your company at your cash management needs and evaluate volume, transaction numbers and average time lags between receivables and payables. Once you understand that, you can go shopping for the right banking partner. If you have many bankers already, consider taking that down to two. By doing so you’ll increase your volume with each bank, be better positioned to compare and negotiate their fees, and they’ll know more about how your business operates. It’s when cash is squeezed that this can pay dividends.

Remember that changing banks can be a costly process and very complex, particularly the more integrated they are into your operations.

Create accurate forecast models to minimize the many uncertainties in large construction projects. While no one has the much-desired crystal ball, you know your business cycle better than anyone. By forecasting cash flows – in and out – you can manage the hiccups more effectively. And that leads to less stress on you and your organization.

Checks take time to process so you need to get them out in advance of your due dates to avoid late fees and keep your credit in good shape. But it’s in your interest to hang on to that cash as long as possible. Wherever possible, use Electronic Fund Transfers (EFTs) to pay on the latest date due to achieve the best of both worlds: you stay current with your vendors while maximizing the return on your cash.

But none of this will truly work without solid cash management technology integrated with your accounts payable, accounts receivable and payroll, especially. With the right construction cashflow software, you’ll eliminate double entry and errors, be able to view deposits and adjustments for easy bank statement reconciliation. The ability to automatically post to your general ledger for account transfers, interest and bank charges provides the accurate reporting you need to spot pending cash flow issues sooner.

Getting the right mix of external partners, internal processes, and integrated cash management technology is the secret to effectively managing your cash rather than it managing you.

This is the sixth in the Viewpoint Primer series on how technology improves construction productivity. We’d love to hear your stories – good or bad – with construction cash management. What are some practices you’ve found that make a difference in your business performance?

“If you can’t beat ‘em, join ‘em” the saying goes, and when it comes to billing your customers this might not be bad advice. In any business, getting paid is a top priority but it’s no secret that actually getting paid on time is usually a challenge met with excuses, delays and may require several phone calls. In the construction business, this can be especially concerning since projects can come to a rapid halt without the money coming in.  If you have a job billing solution and are still facing slow payments, maybe your invoices aren’t meeting your customers’ requirements.

Flexibility in the formatting of the invoices you send is the key to getting paid faster. When you are able to meet the invoice requests that your customers ask for, things just seem to kick into gear. Flexible invoice formatting should allow you to initialize owner pay estimates based on cost to cost percentage complete. It should also enable easy retainage or holdback and allow you to format invoices with Crystal Reports. Lastly, with flexible formatting you should be able to set-up billing options from AIA preprinted forms or custom invoices via Crystal Reports.

Flexibility alone will not change the world however. Some other features of a useful construction-specific job billing solution include the ability for job progress billing, flexible time and material billing and specific options for labor, equipment and subcontractor billing. You also want to look for the simplest way possible to customize your invoices to keep your accounts receivable and accounting departments from rising up in mutiny with torches and pitchforks. This can be avoided by using templates to set-up the level of billing detail, rates, mark-ups and add-ons for jobs or customers with similar billing requirements. Being able to create freeform invoices, independent of Job Cost – including repetitive monthly service-type billings is also nice, as is the ability to automatically update all billable costs.

So start shopping. Good tools are out there and can really make a difference in your payment rate. The bottom line is that job billing is a “necessary hassle,” but with the right job billing software solution in place, it can be rather painless – and perhaps most importantly, speed up the rate at which you’re company gets paid. What kind of job billing solution do you use? Share your experiences.

This is the fifth in the Viewpoint Primer series on how technology improves construction productivity. We’d love to hear your stories – good or bad – with construction job billing. What are some practices you’ve found that make a difference in your business performance?

TechAmerica Oregon has named Viewpoint Construction Software a finalist for Software Company of the Year for the 2012 Oregon Tech Awards along with Digimarc and Tripwire.

Established in 1984 by the Cascade Pacific Council of the Boy Scouts of America, the Oregon TechAwards is the signature event celebrating innovation and technology in Oregon.

Other awards categories include:

• Technology Executive of the Year and Lifetime Achievement Recipient
• System / Hardware Company of the year
• Technology-Service Company of the Year
• Rising Star Company of the Year
• Cool Product of the Year

If you happen to be Portland, consider celebrating technology in Oregon at the awards dinner May 9^th at the Portland Art Museum!