The Difference Between a Construction CPM and ERP for Finance

If you're in the construction industry, finding the right software can help you more efficiently manage every aspect of the business. In your search, you might wind up discovering a variety of CPM and ERP software, but at first glance, you may not be quite sure what the difference between them is. Understanding the differences between these technologies will help you decide which is ideal for your tech stack, or if you’ll want to invest in both.

What Is Construction CPM Software?

Corporate Performance Management (CPM) is a type of platform technology that can make it easier for contractors and businesses to manage their operational strategy, primarily through automated analytical flows and reporting capabilities. These platforms use a system of AI, machine learning, and algorithms to essentially make sense of various data sets and use them to help make informed top-level decisions.

What Is Construction ERP Software?

Enterprise Resource Planning (ERP) software is a tool that helps automate transactional flow, which serves to increase efficiency of operation. It does so through in-depth analytics based on data from construction processes including contractor management, financial management and accounting, human capital management, vendor management, and project management, among other sets of data.

Key Features of CPM Software

CPM software is used to help with planning and strategy of construction projects at the top level. It's often used together with an ERP solution along with a CRM for digitization, with CPM solutions functioning as the hub that helps you get the most out of the rest of your technologies.

You can use a CPM solution for a variety of functions that assist with business strategy, including:

●      Forecasting of revenue, projects, and cash flow

●      Corporate budgeting

●      Forecasting for labor, materials, and equipment

●      Pay and payroll management

●      Process and planning

Features Included with ERP Software

Using ERP software, contractors and companies can consolidate disparate data and systems into a single, centralized solution. Using this tool, construction managers will be able to have full control over their projects. Contractors use ERP software to:

●      Estimate costs

●      Manage contracts and purchase orders (POs)

●      Manage inventory

●      Schedule projects

●      Manage bids

●      Create reports

●      Manage equipment and facilities

●      Monitor performance and productivity

●      Process HR and payroll

When to Use Both as a Unified Solution

Both CPM and ERP software can be invaluable assets for project management and financial strategy when used together. C-level executives and managers will be able to leverage CPMs to inform their strategies at the highest level, automating forecasting and reporting to drive decisions. It can use existing data to help predict the effects of various decisions or circumstances- and with data standardization and consolidation, it’s easier to keep projects on-schedule and within budget constraints.

In short, using CPMs for strategizing and ERPs to implement those strategies can help maintain the efficiency of both the projects and the business while enabling the company to profit.

Briq is a corporate performance management platform built specifically for construction financial professionals.

We join modern technology, with hundreds of years of combined construction experience to give you deep insights into your business.

Briq unifies your financial workflows, making them more efficient, accurate and timely.

By automating workflows, consolidating financial data, and enabling real-time reporting, we allow contractors to make efficient and effective financial decisions.