Microsoft Business Central for Construction Industry

Microsoft Business Central for construction is a game-changing solution that helps companies improve ROI and project management through resource tracking, billing, and costing.

The solution also empowers you to prevent financial leaks with budget management and real-time financial reporting. You can tailor Dynamics Business Central to fulfill your specific needs, like construction safety, cash flow, and solid accounting processes.

The construction industry is highly regulated, and companies work under duress to meet regulatory compliance and derive profitability. Apart from this, they also struggle to complete the project within the given timeframe and budget, hindering productivity.

According to a McKinsey report, 98% of businesses struggle to complete projects under budget, while 77% suffer from project delays. The challenges don’t stop here; they lack transparency in inventory, deal with data silo, and are prone to errors due to manual processes.

Here, Microsoft Dynamics 365 Business Central, an all-in-one ERP software, helps companies to overcome challenges, win more bids, track project overruns, allocate resources, and derive profitability.

Dynamics Business Central provides holistic features to construction companies for various requirements, including finance, project management, and supply chain management. This helps them to manage multiple aspects of business hassle-free.

To learn more about how construction can take advantage of Dynamics Business Central, we will analyze the common challenges and talk about Business Central's benefits.

Common Challenges Construction Companies Face

Construction companies face various challenges throughout the project’s life cycle. They need to keep the project on schedule, complete it within budget, and compliant with safety regulations. Here are some of the top challenges in the construction industry.

Deliver Project within Timeline and Budget

Companies need to deliver the project within the given time frame and budget. However, many times they fail to do so because material prices go high, and development conditions fluctuate depending on local, national, and global conditions.

This led to difficulty in tackling the delivery timeframe, resources, and budget. Hence, Dynamics BC helps companies to track all the factors in real time and foster project progress.

Less Transparency in Inventory

While constructing a project, companies are unable to track their inventory, which can lead to stockout or overstocking. In case of a stockout, the construction process stops, and you still need to pay for labor and equipment. While overstocking can lead to loss and concrete deterioration.

Hence, ERP software like D365 Business Central can help construction companies track inventory in real-time.

Unable to Track Project Costs and Profitability

Construction companies struggle to track costs, such as material, labor, and machinery due to inaccurate cost estimates, overhead expenses, lack of resources, change in project scope, or unexpected events.

These factors make things challenging for businesses, like predicting future costs accurately, assessing total expenditure, maximizing profitability, and delivering the project successfully.

Manual Process

Usually, construction companies use manual processes to track and record all the activities that have a high chance of error. A simple error in calculation can result in huge loss.

Benefits of Using Microsoft Dynamics 365 Business Central

Dynamics 365 Business Central can provide several benefits to construction companies. For instance, its real-time insight allows you to ensure your project is on track. Business Central benefits don’t stop here for construction companies. Here is more:

Win More Bid

Assessing the parameters, such as types, project values, and tasks, is vital for construction companies to secure more bids. Microsoft Dynamics 365 Business Central helps companies assess the project, which can deliver maximum ROI and meet your criteria.

Business Central helps you understand the cost and time required to complete the project and bid accordingly. This results in higher profitability and more project winnings.

Improve Collaboration Among Your Teams

A construction company can leverage an ERP system that eliminates data silos and centralizes data. This ensures all the people in the team have access to the latest information to avoid miscommunication and errors.

It also allows integration with other Microsoft solutions, like Power BI, to ensure team members, subcontractors, and clients are on the same page.

Increased Operational Efficiency

You can automate repetitive tasks, such as billing, procurement, and work order management. This reduces administrative overhead and frees up time for more strategic activities.

Furthermore, you can leverage an ERP system for efficient scheduling and utilization of resources, such as labor, equipment, and materials. This helps businesses minimize downtime and maximize productivity.

Improve Your Employees Productivity

Microsoft Business Central for construction empowers businesses with advanced project planning tools to create detailed schedules and allocate resources and budgets. This enables businesses to execute better and complete the project in a timely manner.

Moreover, you can track the project in real-time, identify the issue with resource allocation or something else, and take proactive action to correct it.

Features of Business Central for Construction

The features of Microsoft Business Central for construction companies are comprehensive and outstanding. This allows businesses to invest in only one solution rather than implementing different solutions for different processes. Let’s know about the features in detail.

Project Management

When you opt for Dynamics 365 Business Central implementation, it provides you with tools for detailed project planning and scheduling, including Gantt charts and resource allocation.

You can track project costs in real-time, control budget spending, and identify the costs that will be required in the future.

Moreover, you can automate billing processes, create contracts for fixed-price projects, generate invoices, and guide Business Central to delete outdated data for accurate and timely invoicing.

Financial Management

The Business Central Finance module empowers construction companies with advanced tools that help with financial planning, budgeting, and forecasting. It comes with a general ledger that helps businesses with financial reporting, accounts payable/receivable, and ledger management.

Supply Chain Management

After successful Dynamics 365 Business Central implementation, companies can simplify procurement processes. It also helps with vendor management, purchase orders, and procurement planning.

Furthermore, businesses can track inventory in real-time, automate reordering, and ensure adequate inventory to eliminate understocking or overstocking.

Compliance and Risk Management

The construction industry is a highly regulated industry, and they can’t afford being not compliant as per changing global norms. Microsoft Dynamics 365 Business Central offers tools to ensure compliance with industry regulations, safety standards, and environmental requirements.

How Can Dynamics Square Help Construction Company?

Microsoft Business Central for construction is a good fit, as it helps companies manage projects more effectively, optimize resources, ensure compliance, and make informed decisions.

The solution empowers construction companies with improved operational efficiency, reduced costs, and enhanced project delivery. It is essential to understand that you need to utilize the solution in the best possible way to reap the maximum benefits.

Dynamics Square, a Dynamics 365 Business Central partner in Vancouver, helps construction companies implement the solution or upgrade from the legacy system. With us, you can eliminate redundant and manual processes, helping you to deliver projects on time and on budget.

We are a team of 135+ consultants and are available to you 24/7. Our consultants possess in-depth knowledge of Business Central and tailor the solution according to your requirements.

Schedule a call at  +1 778 381 5388 or write an email at info@dynamicssquare.ca to start your journey towards better productivity, operation, and resource allocation.