💻 ERP Selection for Construction
Outgrowing QuickBooks? Choosing the right ERP is one of the most important (and expensive) decisions you'll make.
Key Principle
The best ERP is the one your team will actually use. Features don't matter if nobody adopts the system.
When to Upgrade from QuickBooks
Signs You've Outgrown QuickBooks
- Job costing is painful - Manual tracking, spreadsheet dependent
- Multiple entities - Intercompany transactions are a nightmare
- WIP is in Excel - Not integrated with accounting
- Payroll complexity - Multiple states, unions, certified payroll
- Document management - Can't attach docs to transactions
- User limits - Not enough simultaneous users
- Audit trail - Can't track who changed what
- Integration needs - PM software, estimating, field apps
Typical Transition Points
| Revenue | Typical System |
|---|---|
| $0-5M | QuickBooks |
| $5-25M | QuickBooks → Foundation/Sage 100 |
| $25-100M | Sage 300/Viewpoint Vista |
| $100M+ | Vista/CMiC/Viewpoint Spectrum |
| $500M+ | Enterprise (SAP, Oracle, CMiC) |
Major Construction ERPs
Tier 1: Entry-Level Construction
Foundation Software
- Sweet spot: $5-50M contractors
- Strong job costing
- Integrated payroll
- Good for specialty contractors
- Lower cost of ownership
Sage 100 Contractor
- $5-50M contractors
- Familiar Sage interface
- Solid fundamentals
- Large user base
Tier 2: Mid-Market
Sage 300 CRE (Timberline)
- $25-250M contractors
- Industry standard for decades
- Comprehensive modules
- Large consultant network
Viewpoint Vista
- $25-500M contractors
- Modern cloud option
- Strong project management
- Good integration capabilities
Viewpoint Spectrum
- $50-500M+ contractors
- Full-featured
- Strong financials
- Complex implementation
Tier 3: Enterprise
CMiC
- $100M+ contractors
- Single database architecture
- Highly integrated
- Significant implementation
Jonas Construction
- $25-250M contractors
- Canadian origin, strong in North America
- Good for GCs and subs
Deltek ComputerEase
- $10-100M contractors
- Strong job costing
- Good for government contractors
Cloud/Modern Options
Procore Financials
- Integrated with Procore PM
- Growing feature set
- Modern interface
- Consider if heavy Procore user
Acumatica Construction
- Modern cloud platform
- Growing in construction
- Good for tech-forward companies
Selection Process
Step 1: Requirements Gathering
Document your needs:
| Category | Questions |
|---|---|
| Company Profile | Revenue, employees, entities, locations |
| Project Types | Lump sum, T&M, cost-plus, unit price |
| Payroll | Union, prevailing wage, multi-state |
| Integrations | Estimating, PM, field apps, banks |
| Reporting | WIP, job cost, executive dashboards |
| Users | How many, what roles, remote access |
Step 2: Shortlist Vendors
Narrow to 3-4 options based on:
- Company size fit
- Project type fit
- Budget range
- Reference availability
- Local support
Step 3: Demos
What to evaluate:
- Job costing workflow
- WIP report generation
- Payroll processing
- AP/AR workflows
- Month-end close
- Report customization
Who should attend:
- CFO/Controller
- Accounting staff
- Project managers
- Payroll administrator
- IT (if internal)
Step 4: References
Ask references:
- Implementation experience?
- Training adequacy?
- Support responsiveness?
- Hidden costs?
- What would you do differently?
- Would you choose them again?
Step 5: Total Cost Analysis
Include ALL costs:
| Cost Category | One-Time | Recurring |
|---|---|---|
| Software license | ✓ | (or subscription) |
| Implementation | ✓ | |
| Data migration | ✓ | |
| Training | ✓ | ✓ |
| Customization | ✓ | |
| Hardware | ✓ | |
| Annual maintenance | ✓ | |
| Support | ✓ | |
| Upgrades | ✓ | |
| Additional users | ✓ |
Rule of thumb: Implementation = 1-2x software cost
Implementation Success Factors
What Makes Implementations Fail
- Inadequate training - Users don't know the system
- Poor data migration - Garbage in, garbage out
- No process change - Trying to replicate old workflows
- Insufficient resources - No dedicated internal team
- Scope creep - Adding requirements mid-project
- Executive disengagement - No leadership support
What Makes Implementations Succeed
- Executive sponsor - Active leadership involvement
- Dedicated internal team - Not just side-of-desk
- Clean data migration - Take time to clean data
- Process improvement - Adopt best practices
- Adequate training - Train, train, retrain
- Phased approach - Don't do everything at once
- Change management - Help users adapt
Typical Timeline
| Phase | Duration |
|---|---|
| Selection | 2-3 months |
| Planning | 1-2 months |
| Configuration | 2-4 months |
| Data migration | 1-2 months |
| Testing | 1-2 months |
| Training | 1-2 months |
| Go-live | 1 month |
| Stabilization | 2-3 months |
Total: 12-18 months for full implementation
Key Modules to Evaluate
Must-Have for Construction
| Module | Why Critical |
|---|---|
| Job Costing | Track costs by project, phase, cost code |
| Accounts Payable | Subcontractor payments, retention |
| Accounts Receivable | Progress billing, retention tracking |
| General Ledger | Financial reporting, multi-entity |
| Payroll | Union, certified payroll, multi-state |
| WIP Reporting | Integrated, real-time |
Important Add-Ons
| Module | Consider If |
|---|---|
| Project Management | Need PM integration |
| Equipment | Significant owned fleet |
| Service Management | Do service/maintenance work |
| Document Management | Want docs in system |
| HR/Benefits | Manage internally |
| Purchasing | Formal PO process |
Questions to Ask Vendors
Functionality
- How does job cost allocation work?
- Show me the WIP report workflow
- How do you handle retention?
- Demonstrate certified payroll
- How are change orders processed?
- What reports come standard?
Technical
- Cloud, on-premise, or hybrid?
- How are backups handled?
- What's the upgrade process?
- API availability?
- Mobile access?
Support
- Implementation methodology?
- Who does training?
- Support hours and response time?
- User community/forums?
- Annual conference/training?
Commercial
- Pricing model (license vs subscription)?
- What's included vs extra?
- Contract length?
- Price protection?
- References in our size/type?
Common Mistakes
1. Choosing Based on Demo Only
Problem: Demo jockeys make everything look easy Solution: Talk to references, see real implementations
2. Underestimating Implementation Cost
Problem: Budget for software only Solution: Plan for 1-2x software cost for implementation
3. Not Involving Users
Problem: CFO chooses, staff rebels Solution: Include actual users in selection and design
4. Expecting Immediate ROI
Problem: Productivity drops initially Solution: Plan for 6-12 month learning curve
5. Customizing Too Much
Problem: Expensive, upgrade-proof Solution: Adapt processes to software where possible