Project Management

Project Management Central

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Topics: Construction, Manufacturing, Organizational Project Management, Procurement Management
Adoption of ERP in Construction Companies-Project Management
With the current Technologies and trends, adoption of ERP in the Construction Industry is seen as a viable solution to enhance the visibility and status of various projects in ever increasing competitive world.

However, when you look closely, ERP systems were introduced mainly for manufacturing industries which are standard repetitive processes.

Yes, ERP can be adopted in areas like HR, Procurement, and Finance as the processes involved are repetitive and standard.


When you look at Project Management or Projects in general this is not applicable, as each project how identical they might be are run by People.

Each person is unique be it a manager, engineer, supervisor or a mason. So, No matter how identical the projects are they differ from one another. Maybe because of the geographical location, terrain, diverse backgrounds of manpower, experience, cash flow the list is endless.


It is understood that we tend to have individual ways of execution, thought processes and experiences. This is one of the reasons why Project Management or Project Controls will not be able to gel with ERP systems 100% as it is mainly run by People unlike other industries or sectors.

A project can be defined as a temporary endeavor undertaken to create a unique product or service. Projects are different from other ongoing operations in an organization, because unlike operations, projects have a definite beginning and an end - they have a limited duration. (Courtesy: Project Management Institute, USA)

In my opinion, it is recommended that Operations such as HR, Procurement, Logistics and Finance which are Functional to any Organization adopt ERP systems to support project management processes.

I would really appreciate fellow members to share their views as most people have already faced this or will face it in near future.
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The dramatic change being brought about by all the emerging technologies will require much more than an ERP system and most ERP systems will take far to long to update their software!
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1 reply by Kalyan Emandi
Feb 20, 2019 8:55 AM
Kalyan Emandi
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Exactly!!! You couldn't have been more correct Kevin.

Construction is one sector where nearly 80% of manpower needs very little education. Now ERP takes a while to get started ( 100% deployment is probably 1.5 to 2 years ) .

Within this time I think a few as you said a few dozens technologies have already entered and exited the market already.

I agree for Manufacturing, Hospitality , Finance , Logistics , Inventory management but Project management is not the above everything changes . A defined way to complete a task is a myth whatever might be the field.

However, ERP can be deployed in functional Operations such as Logistics, HR, Finance as they continue irrespective of number of projects in the Organizations - Resources are spread over a period of time.

PM on the other hand is time and cost . The changes are dynamic according to the Project requirement at different stages. That makes PM techniques unique, adventurous and insightful,
Feb 19, 2019 3:16 AM
Replying to Kevin Coleman
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The dramatic change being brought about by all the emerging technologies will require much more than an ERP system and most ERP systems will take far to long to update their software!
Exactly!!! You couldn't have been more correct Kevin.

Construction is one sector where nearly 80% of manpower needs very little education. Now ERP takes a while to get started ( 100% deployment is probably 1.5 to 2 years ) .

Within this time I think a few as you said a few dozens technologies have already entered and exited the market already.

I agree for Manufacturing, Hospitality , Finance , Logistics , Inventory management but Project management is not the above everything changes . A defined way to complete a task is a myth whatever might be the field.

However, ERP can be deployed in functional Operations such as Logistics, HR, Finance as they continue irrespective of number of projects in the Organizations - Resources are spread over a period of time.

PM on the other hand is time and cost . The changes are dynamic according to the Project requirement at different stages. That makes PM techniques unique, adventurous and insightful,

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