Construction projects are complex, with numerous variables at play. From labour and materials to unexpected delays and challenging logistics requiring careful management of many moving parts. It’s also a highly regulated industry that is subject to everything from permits and approvals to safety and work site controls. As a result, today’s construction companies are grappling with several dynamics that impede productivity and profitability. In fact, according to McKinsey, 70% of project managers in the construction industry reported a 70% scope creep while 40% reported that their timelines exceeded the expected schedule.
Did you know?
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Only 50% of project owners are meeting their completion deadlines*
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37% have missed budget and schedule performance targets due to ineffective risk management*
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83% say their single biggest priority is improving the estimating accuracy of materials and equipment*
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71% say they are extending the duration of planning activities to increase confidence around project scope, schedule, quantities, etc*
* KPMG's 2023 Global Construction Survey
To prevent underperformance within these highly complex and fragmented project-based construction processes, construction companies must continue to invest in technology, with a focus on digitalisation, integration and data-driven project management capabilities.
Construction is one of the least digitised sectors. But that also means the potential from implementation of digital technologies can be huge. Because it is only when all systems are connected, all data is shared and all people share the same single version of truth, that business leaders can track all aspects of a project, use that data to produce precise data-first forecasts and prevent projects form suffering from overruns in cost and time.
NetSuite cloud ERP presents an opportunity to raise the standard on project management knowledge and improve the accuracy of projections. This flexible, agile solution supports a modern approach to project management and execution. Here’s how company’s just like yours are using NetSuite to ensure their projects remain profitable.
NetSuite & integrated financial management for construction
NetSuite provides comprehensive financial management tools that integrate all aspects of your construction business to deliver a “single source of truth.” Having reliable data drawn from the site provides a holistic view of each project's financial health. Everyone has access to one agreed version of the truth in project drawings, schedules, KPIs, and so on. You can always see, in real time, how your spending decisions affect the profit you’ll have at closeout. Which equals more accurate budgeting and better cash flow management, ensuring that all financial aspects are considered in profitability forecasts.
NetSuite & project management capabilities for construction
NetSuite’s project management features allow you to plan, track, and manage every aspect of your project. From resource allocation to task management, NetSuite brings together all project elements and helps keep them aligned to financial goals. For example, you can use NetSuite’s Gantt charts, project templates, and milestone tracking, to better predict potential challenges and adjust your strategies accordingly.
NetSuite & advanced budgeting and forecasting for construction
The NetSuite Planning and Budgeting (NSPB) module empowers you to create detailed budgets and forecasts that reflect the realities of your projects. By incorporating historical data and leveraging predictive analytics, NSPB can help you anticipate future costs and revenues more accurately. There’s also support for scenario planning, allowing you to assess the impact of different variables on project profitability.
NetSuite & real-time data and analytics for construction
One of NetSuite's core strengths is its ability to provide real-time data and advanced analytics. With the capabilities to continuously monitor project performance, you can quickly identify cost overruns, delays, and other issues that might impact profitability. In particular, NetSuite's highly customisable dashboards and reporting tools offer actionable insights into key metrics, enabling team leaders to make more informed, real-time decisions.
NetSuite & customisable reporting for construction
NetSuite’s customisable reporting tools allow you to generate reports tailored to your project-based needs. Whether you want to generate a high-level overview of project profitability or go granular with detailed breakdowns of individual cost components, NetSuite can provide the insights you require. These reports can also be scheduled and automated, ensuring that stakeholders receive timely updates on project performance.
NetSuite & automated cost tracking for construction
Manual cost tracking invariably leads to errors and inefficiencies. NetSuite automates this process, ensuring the accurate recording and categorisation of all project-related expenses. No longer relying on manual entry, you reduce the risk of mistakes and ensure that your financial data is always up to date. This automation also helps in maintaining strict compliance with company policies and industry regulations.
NetSuite & resource management for construction
Effective resource management is critical for project profitability. NetSuite’s resource management tools help you allocate labour, equipment, and materials while providing deeper visibility into resource availability and costs. By optimising resource utilisation, you can ensure projects stay on schedule, within budget, and benefit from more accurate forecasting.
The best equation for project profitability is NetSuite
Accurately forecasting project profitability is complicated, but with the right tools and strategies, things become infinitely more manageable. By leveraging NetSuite’s integrated financial management, real-time data, advanced analytics, and automated processes, you can ensure that your construction projects remain on track and profitable.
Even more valuable resources:
NetSuite case study: How ATOM’s revenue grew over 72% in just three years
Discover how terminal management firm ATOM fuelled their growth aspirations with Annexa’s best-in-class NetSuite cloud ERP integration and implementation approach.
ATOM's transformation story >