Software applications: computers and related software allow the masonry contractor to compete effectively in the information age

Masonry Construction, April, 2003

The amount of information and data that is collected, processed, and interpreted on a daily basis by the masonry contractor is tremendous. The contractor employs a large number of craftsmen, which creates a complex and time-consuming payroll process. The accounts payable system encompasses a considerable number of vendors and data entries. Accurate project estimates, schedules, and cost and time control activities require significant amounts of data for maximum results.

Many contractors are small businesses that might be overwhelmed by the task of data and information management. These businesses tend to focus more on marketing,sales, and production rather than record keeping and data/information processing. The result could be financial loss on a project or even financial ruin for the business.

However, the computer and accompanying software allow the contractor the opportunity to manage an his information streams. This tool processes, manipulates, stores, and prints information, but the result of the output is only as good as the value of the data input. Costs for hardware and software are easily within the reach of virtually all masonry contractors' budgets.

Accounting

The computer provides numerous advantages for creating timely and accurate accounting procedures. In addition to eliminating paperwork, the equipment speeds up the task of generating financial statements and allows the input of data directly from remote sites to create job cost reports in a matter of seconds.

The computer is capable of performing several financial tasks for the masonry contractor:

* General ledger accounting

* Accounts payable

* Accounts receivable

* Payroll accounting

* Job costing.

The payroll and accounts payable functions are especially troublesome for the masonry contractor. Each of these areas involves a large number of transactions that require considerable manual labor if a computer is not employed.

There are a large number of software programs available to handle the contractor's accounting tasks. When making the selection, consider installation support, user training, available documentation, continuing support after installation, manufacturer size and stability, and experience in your industry.

On the hardware side, evaluate installation support, expansion potential, equipment performance, ease of operation, maintenance requirement, and data communication capability.

Project management

While many contractors have computerized their financial accounting, a lessor number have automated the project management functions. Managing a construction project incorporates several activities, including:

* Estimating

* Scheduling

* Job cost control.

Estimating involves taking off project work quantities and determining the cost of labor, material, equipment, and overhead. It is a time-consuming process that is prone to errors because of the many parameters. A computer improves the accuracy of the final bid document and significantly cuts the amount of time needed to prepare the estimate.

The software incorporates several estimating tools:

* Computer aided design (CAD)

* Process math calculations and formulas

* Data base of past performances that improve forecasting and costing estimates

* "What if" analysis to study the estimates under different assumed future events.

CAD programs enable the user to prepare computerized drawings for the project that can be read to perform quantity takeoffs. Many software vendors supply CAD programs.

The other three tasks are performed by two different approaches to software: general application and industry. Usage is pretty evenly divided between the two.

The table above summarizes the features of these two approaches.

Planning and scheduling software enable the contractor to:

* Plot as planned project schedules

* Perform critical path method calculations

* Plot and manage resources

* Plot and manage cash flow

* Update project in a timely and accurate manner.

Ideally, the scheduling program interfaces with the estimating function so the two are performed in conjunction with each other. Unfortunately, many software vendors provide one or the other, but not both; however, the programs often interface.

There are several factors to consider when selecting a planning and scheduling software program:

* Number of activities to input

* Ability to update program

* Resource algorithms available

* Popularity of program with clients

* Ability to interface with estimating software

* Ability to interface with the control function

* Ease of data entry

* Number and types of reports available.

Job control software provides a report on the status of a project and associated overruns or underruns based on input data such as labor time and quantities in place. The computerization of this function is made complex by the fact that software vendors often supply general ledger packages that includes a job control module, and project management estimating software also provide this type of module. This arrangement has forced many contractors to have two standalone job control computer systems.