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Management Software

How Much Does Construction Management Software Cost?

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Construction Management Software Prices

Running a construction business is complex. You have to manage staffing, bidding, budgeting, scheduling, accounting and ordering - all across multiple projects. Construction management software streamlines all of those tasks in a single project management tool, making it easier to stay up to date with the status of each project. The software tracks the lifecycle of each project from beginning to end.

Types of Construction Management Software

As with all software, there are two basic types of construction management software:

  • In-house or on-premise software runs on your company server and is installed on each of your computers. You have total control of the software, but you need an experienced IT staff to manage it. You'll pay a large fee upfront, but there will be fewer recurring costs.
  • Web-based or cloud-based software is hosted outside of the company on the provider's server and is accessed through a web browser. You'll pay a small setup fee and then monthly payments based on the number of users or licenses in your office.

In the construction industry, in-house software is more prevalent - mostly because it's an older and better-understood system. Some construction companies just aren't comfortable with project data residing on outside servers. However, web-based software is growing in popularity, particularly among smaller construction firms.

Construction Software Average Costs

In-house construction management software is priced anywhere from about $1,000 to more than $100,000. Off-the-shelf software that focuses primarily on a single task such as estimating falls on the low end of that price range, while complete software solutions for large constructions firms fall on the high end.

The vast majority of construction firms should expect to spend anywhere from $10,000 to $50,000 on software that provides a variety of project management, financial and human resources functions. That might sound like a lot of money, but the cost is usually recouped after a few years in improved bidding and reduced expenses.

With web-based software, you'll pay a monthly or annual fee based on the number of users. In some cases, but not often, the provider will charge a percentage of the total project cost for which the software is being used. Some providers also charge small startup fees.

Selecting Construction Management Software

Most construction management software is capable of streamlining all of your most important project tasks. However, most only specialize in one or two of those tasks, whether it's bidding or payroll. Identify which processes you most need to streamline before shopping the various vendors and use that information to help make your decision.

Budget is always an important consideration. But, don't choose construction management software on price alone. As the saying goes, "You get what you pay for". Sometimes the cheapest software is lacking in functionality or is difficult to use. Before committing to any purchase, request a complete product demo or free trial period to test the software.

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