From Project Cost Estimation to budget control with ERP for project-based business
Businesses that are serious about growth make sure to invest in project optimisation solutions such as ERP for project-based business. One of the key aspects of an automated project management platform is the ability to conduct project cost estimation.
Here are some of the benefits of project cost control using ERP software:
- You can view all the activities related to the project on a single dashboard.
- Each function of your workflow can be digitised partially or completely with minimal human intervention.
- The bidding process for project work is automated and there is clarity on the best quotes due to high-end analysis.
- You can track budget as per the project estimates to identify cost overruns.
- Monitor schedule of the project and compare it with the estimated schedule to prevent cost escalations due to delays.
Importance of Project Cost Estimation
In the pre-execution stage of a project, you prepare a cost estimate that helps you to bid for a project. Once you win the bid, you need constant monitoring to ensure that the actual costs don’t exceed the estimated costs. Else, your project cost will go over budget and if the cost is not controlled, the project may not be viable for your company.
An ERP platform integrated the costs related to hiring subcontractors and labour along with the cost of raw materials, cost of machinery and other miscellaneous costs. Through the project functionalities, you can check the variance in estimates and actual costs giving you more control over the project expenses.
Experienced project managers will always include an additional percentage for project costs in the project estimates to factor in cost of unforeseen events or delays.
Documentation for project estimates
Earlier, project estimation involved using a variety of tools to come up with the final project estimation report. These tools were used to analyse the proposed project viability and costs. Another software was used for the presentation of the analysis. And another software was used to create a document of the analysis and estimation report.
Now, every aspect of the project cost and schedule estimation can be handled using a single ERP platform. All the documentation such as project cost overview, resource scheduling, billing schedule, activity-specific cost analysis and resource-specific cost analysis can be managed using the ERP software.
A cloud-based project Management software such as OMNI ERP comes with a wide range of features and options to automatically create and download project estimation reports. Also, ERP software has a single dashboard for accessing all the pre-project, ongoing project and post-project data.
As all the ERP users access data from a centralised system, nobody has to send out files separately. Notifications make is easy for users to find out about project document updates. For sharing reports or files with users who are not part of your ERP system, users can create and share documents directly from the platform without having to use an external software or web service for file sharing.
In case, your teams have been using popular software for collaboration, you can allow them to use it with your ERP through third-party integrations.
Easy Approach To Data Consolidation
With manual processes, you may use a number of excel sheets with estimates and mail them to different team members. ERP software automates the entire data consolidation process. Parts of the documents won’t be lying on various systems. You will save time and money on acquiring the data from various team members.
Being a unified system, an ERP can smartly link all the relevant documents to the project and make it easier for team members to access all the necessary files in one place. A notable benefit of ERP is that you can create multiple project estimates and access it through a systematically organised platform.
Well-designed ERP software give you the entire history of the project with the record of changes made to each document. Managing different versions of the documents becomes difficult with manual processes. Also, manual processes can lead to numerous errors in documentation.
Handle documental version control with ERP software. Additionally, you can access these documents at any time, on any device through a web-based document management system such as OMNI ERP.
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An ERP software can simplify the project estimation process with the ease offered by automated functionalities and smart data consolidation. It enables you to come up with accurate bid proposals and execute your projects successfully.
Save time and effort with a better project cost estimation system such as OMNI ERP for project-based business. Mumbai’s leading construction firms utilise OMNI’s intelligent technology to power their projects.
To know more about OMNI Project Management ERP and its various functionalities, call _______
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