Implementation of Enterprise Resource Planning (ERP) Systems in the Construction Industry

Enterprise Resource Planning (ERP) is now being hailed as a foundation for the integration of organization-wide information systems. ERP systems link together an entire organization's operations such as accounting, finance, human resources, manufacturing and distribution, etc. Moreover, they also connect the organization to its customers and suppliers through the different stages of the product or process life cycle. There are very few studies conducted about the implementation of ERP systems in the construction industry, particularly for the construction contractors. The focus so far has been on client organizations, engineering and design firms. The objective of this paper is to investigate the suitability and the implementation status of ERP systems in contractor firms. The methodology employed is a mix of literature review, case studies and detailed questionnaire survey. It was found that the majority of contractor firms have awareness about ERP but very few organizations have so far implemented an internal system. The major reason is that the implementation of an ERP system requires a large investment in time, money and resources. However, when implemented to solve the right problems, these ERP systems can be a powerful tool for business improvement. This study sheds light on the barriers to the implementation of ERP systems in the construction industry and also highlights valuable lessons learned and benefits gained by companies that have such systems in place.