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 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 the 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, market studies and detailed questionnaire survey. It is found that the majority of contractor firms have awareness about the ERP systems but very few organizations have so far implemented such systems. The major reason is that the implementation of any ERP system needs a huge 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. The study shed 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.