{"id":18888,"date":"2015-05-17T13:47:04","date_gmt":"2015-05-17T17:47:04","guid":{"rendered":"https:\/\/foundationsoft.com\/?p=741"},"modified":"2025-04-11T09:13:02","modified_gmt":"2025-04-11T13:13:02","slug":"specialized-integrated-construction-software","status":"publish","type":"post","link":"https:\/\/www.foundationsoft.com\/learn\/specialized-integrated-construction-software\/","title":{"rendered":"Specialized vs. Integrated Construction Software: Which Works Best For Construction?"},"content":{"rendered":"<p><a class=\"gdlr-button medium without-border\" href=\"\/wp-content\/uploads\/articles\/specialized-integrated-software-systems.pdf\" target=\"_self\"  style=\"color:#ffffff; background-color:#000000; \"  >Download PDF<\/a><\/p>\n<p>In a perfect world, <a href=\"https:\/\/www.foundationsoft.com\/learn\/who-uses-construction-accounting-software\/\">contractors<\/a> could select just one<strong> construction software<\/strong> product from one vendor to run all aspects of their business:<\/p>\n<ul>\n<li>Estimating<\/li>\n<li>Accounting<\/li>\n<li>Project management<\/li>\n<li>Scheduling<\/li>\n<li>And so on<\/li>\n<\/ul>\n<p>In reality, many all-in-one <strong>enterprise software systems<\/strong> available today can be too expensive, complex, or functionally deficient to be of any real value to contractors.<\/p>\n<p>How expensive are we talking? For companies that require a dedicated construction accounting software product but do not need the full functionality of an enterprise solution, prices typically range from <a href=\"https:\/\/constructioncoverage.com\/construction-software-pricing-models\">$100 to $300<\/a> per user per month. This means that if the company needs 10 user accounts, they would be spending $12,000 to $36,000 a year.<\/p>\n<p><strong>Contractors<\/strong> continue to debate the merits of vertical, best-of-breed <strong>construction software solutions<\/strong> (such as stand-alone accounting, estimating, or project management applications) and horizontal, fully integrated enterprise construction software solutions.<\/p>\n<a target=\"_blank\" href=\"\/job-costing-ultimate-guide\/\" class=\"blog-cta-image\"><img decoding=\"async\" src=\"\/wp-content\/uploads\/2024\/03\/FSL-blog-post-ad-ultimate-guide.png\" alt=\"UG to Job Costing\" title=\"UG to Job Costing\"><\/a>\n<p>Twenty years ago, technology experts predicted that stand-alone construction software products would be replaced by fully integrated systems\u2014thinking a single software would solve all of a contractor\u2019s business problems in a more efficient way.<\/p>\n<p>Today, only a fraction of contractors, usually the largest, use a single, fully integrated system to manage their businesses.<\/p>\n<p>An <strong>integrated system<\/strong>, while promising greater convenience, fewer overall technology costs, and efficient data sharing, has downsides for the average contractor. Expensive integrated software solutions may have more features than most contractors need.<\/p>\n<p><strong>Best-of-breed construction software<\/strong> systems, meanwhile, are designed specifically to excel in just a few applications. Providing rich functionality and sophisticated features, these <strong>vertical construction software solutions<\/strong> continue to gain ground among contractors despite the challenges of maintaining separate, often disconnected systems.<\/p>\n<h3 class=\"whitespace-pre-wrap break-words\"><span class=\"ez-toc-section\" id=\"Key_Takeaways_Choosing_Your_Construction_Software_Solution\"><\/span>Key Takeaways: Choosing Your Construction Software Solution<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul class=\"-mt-1 [li&gt;&amp;]:mt-2 list-disc space-y-2 pl-8\">\n<li class=\"whitespace-normal break-words\">Best-of-breed solutions offer specialized functionality ideal for specific trades and smaller contractors.<\/li>\n<li class=\"whitespace-normal break-words\">Integrated systems work well for larger contractors with substantial IT resources.<\/li>\n<li class=\"whitespace-normal break-words\">Cost considerations should factor in both immediate expenses and long-term efficiency gains.<\/li>\n<li class=\"whitespace-normal break-words\">Success depends more on matching software to your specific business needs than following industry trends.<\/li>\n<li class=\"whitespace-normal break-words\">Integration capabilities between best-of-breed solutions continue to improve, offering flexible options.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Adding_Construction_Software_As_They_Grow\"><\/span>Adding Construction Software As They Grow<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Not many contractors would be willing to buy a whole new fleet of equipment when all they really need is to replace a few outdated models.<\/p>\n<p>The same goes for their technology investments. Most contractors look for <strong>software<\/strong> <strong>solutions<\/strong> to help them improve productivity or efficiency in an area that is causing problems. Chances are, the problem is not widespread. They may be using one or more <strong>software applications<\/strong> to save time and solve problems in other areas of the business.<\/p>\n<p>If employees know and use those applications efficiently, why would they want to replace them?<\/p>\n<h4><span class=\"ez-toc-section\" id=\"The_Beard_Construction_Group\"><\/span>The Beard Construction Group<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Such was the case at <strong>Beard Construction Group<\/strong>, a growing excavating and site work company located in Port Allen, La.<\/p>\n<p>When Jim Beard and his partner, Keith Coleman, started the company in 2004, they purchased an <strong>estimating<\/strong> and <strong>bidding<\/strong> <strong>software<\/strong> product designed specifically for heavy <strong>construction<\/strong>. Their experienced staff of <strong>estimators<\/strong> already used the product extensively, and it was well-suited for their trade.<\/p>\n<p>Within six months of starting the business, however, Beard Construction realized the <strong><a href=\"\/software\/quickbooks\/\">basic off-the-shelf accounting system<\/a><\/strong> was incapable of keeping pace with the company\u2019s rapid growth. \u201cWe saw that we had to have something more capable of handling the size company we appeared to be growing into,\u201d Coleman says.<\/p>\n<p>Beard sought the best accounting software to handle the company\u2019s labor-intensive <a href=\"https:\/\/www.foundationsoft.com\/learn\/production-reporting-job-costing\/\"><strong>job costing<\/strong> and <strong>reporting<\/strong><\/a> requirements, as well as an upgraded system capable of integrating with the estimating system for greater efficiency and productivity.<\/p>\n<p>Why didn\u2019t Beard choose a fully integrated system from the start? Before launching the company, Coleman had negative experiences with enterprise systems, which included applications for accounting, project management, estimating, and other business functions.<\/p>\n<p>\u201cThey were, in my opinion, somewhat complicated and required an IT department to support them,\u201d Coleman says. \u201cWe spent a lot of time implementing new systems and getting the systems to function properly.\u201d<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Functionality_Versus_Shallow_Features\"><\/span>Functionality Versus Shallow Features<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"HTH_Companies\"><\/span>HTH Companies<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Likewise, <strong>HTH Companies<\/strong>, a mechanical insulation contractor based in Union, Mo., did not consider an <strong>integrated construction software system<\/strong> because of the unique requirements of its business.<\/p>\n<p>According to Controller Susan Hellebusch, the company looked at a few products that offered combined estimating, accounting, and project management applications, but none contained the right functionality.<\/p>\n<p>\u201cBecause we are a very specialized trade, it\u2019s impossible to find something that has the specialized features we need without paying an exorbitant price,\u201d she says.<\/p>\n<p>Instead, HTH Companies uses <strong>takeoff and estimating software<\/strong> specific to mechanical insulation contractors and <strong>construction job cost accounting software<\/strong> designed for labor-intensive contractors that include basic<strong> project management<\/strong> <strong>software<\/strong>. Having separate software products that handle specific functions is a major benefit, Hellebusch says, not a liability.<\/p>\n<p>\u201cThe real measurement of our technology success is the impact it has on overhead,\u201d she says.<\/p>\n<p>The fact that HTH Companies has added minimal support staff in the past six years\u2014during which time the company has doubled in employee size and revenue\u2014\u201cis a good indicator that our software has the capabilities we need,\u201d she adds.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Key_Considerations_for_Your_Decision\"><\/span>Key Considerations for Your Decision<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>How does a contractor decide which software solutions will best serve the company? Is an \u00e0 la carte best-of-breed solution or a buffet-style integrated system better?<br \/>\nHere are some key considerations:<\/p>\n<ul>\n<li><strong>Cost<\/strong>: As with any business investment, costs must be balanced against benefits. In other words, three or four best-of-breed applications may cost more than one integrated system, but will higher functionality and time-saving efficiencies result in greater savings?<\/li>\n<li><strong>Business risk<\/strong>: Fully integrated <strong>enterprise systems<\/strong> are riskier because they are less likely to meet all the requirements of a business. Contractors that choose to use best-of-breed solutions, however, need to consider the technical risks involved in keeping users trained and maintained on separate systems.<\/li>\n<li><strong>Business processes<\/strong>: To successfully implement any software solution, <strong>contractors<\/strong> need to review current business processes and align them to work with a new system. This is especially critical with an integrated system because the implementation generally requires more resources than a best-of-breed solution.<\/li>\n<li><strong>Integration and data sharing<\/strong>: While an integrated system should offer data-sharing advantages over disconnected software products, many so-called integrated systems are actually the result of larger companies acquiring specialized best-of-breed systems so they can claim to offer <strong>end-to-end solutions<\/strong>. However, many sophisticated best-of-breed products provide easy integration (and more data-sharing capabilities) with other vertical software products, thanks to open database structures and vendor collaboration initiatives.<\/li>\n<li><strong>Usability<\/strong>: Rather than selecting a software product based only on <strong>features<\/strong>, functions, or <strong>integration<\/strong> capabilities, contractors must consider how easy and efficient the product will be to use. Unless end-users buy into the product, the solution has little chance of success.<\/li>\n<\/ul>\n<a target=\"_blank\" href=\"\/demo-video-player\/\" class=\"blog-cta-image\"><img decoding=\"async\" src=\"\/wp-content\/uploads\/2024\/03\/FSL-blog-post-ad-fsl-in-action.png\" alt=\"Watch a Demo\" title=\"Watch a Demo\"><\/a>\n<h2><span class=\"ez-toc-section\" id=\"The_Construction_Software_Best-of-Breed_vs_Integrated_Solutions\"><\/span>The Construction Software: Best-of-Breed vs. Integrated Solutions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"whitespace-pre-wrap break-words\">Despite how far <strong>contractors<\/strong> have come in leveraging <strong>construction software technology<\/strong>, the quest for greater productivity continues to drive innovation in both best-of-breed and integrated solutions. T<\/p>\n<p class=\"whitespace-pre-wrap break-words\">he evidence shows that success lies not in following industry trends but in choosing solutions that align with your company&#8217;s specific needs, resources, and growth trajectory.<\/p>\n<p class=\"whitespace-pre-wrap break-words\">While larger contractors explore fully integrated enterprise solutions, small and mid-range construction companies are finding success by creating customized end-to-end solutions through strategic implementation of <strong>best-of-breed construction software products<\/strong>.<\/p>\n<p class=\"whitespace-pre-wrap break-words\">The key is selecting construction software solutions that offer the functionality for your specific trade while maintaining the flexibility to integrate with other systems as your business grows.<\/p>\n<p><em>*Published in<\/em>\u00a0Construction Executive<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a perfect world, contractors could select just one construction software product, from one vendor, to run all aspects of their business: estimating, accounting, project management, scheduling and so on. In reality, many all-in-one enterprise software systems available today can be too expensive, complex or functionally deficient to be of any real value to contractors.<\/p>\n","protected":false},"author":17,"featured_media":1479,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_searchwp_excluded":"","inline_featured_image":false,"footnotes":""},"categories":[39],"tags":[35],"class_list":["post-18888","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-whitepapers","tag-managing-your-business"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Construction Software: Specialized or Integrated<\/title>\n<meta name=\"description\" content=\"Is one integrated construction management software suite best for your business or are specialized tools like construction accounting 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