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Construction Software Products Offer
Basic Job Costing & More
By Mary Girsch-Bock
From the April/May 2004 Issue of CPA Technology Advisor
Once upon a time, there were three companies. Company A builds 10 to 20 homes a year. Company B handles
upwards of 100 jobs a year, subcontracting out about 70 percent of its jobs and building a variety of projects.
Company C is in development and handles most of its construction, but it also owns another company that handles
the electrical work for all of their construction projects.
Aside from being in the construction industry, these three companies have very little in common. So when these
three very different companies go searching for software to make their business more efficient and more
productive, it’s ridiculous to think that they would be looking for the same exact things.
The construction industry is one of the most highly specialized software markets. Companies, large and small, have
to be able to efficiently track their job and material cost. Equipment must be accounted for and sufficiently
maintained, and operating expenses must be factored in when looking for bottom-line expenses. It’s helpful to have
multiple billing formats, depending on your specialty. It’s also helpful to have a system that won’t take months and
months and thousands upon thousands of dollars to implement.
In an effort to help you better identify how each of these products might meet the needs of one of your clients, we
have established a prototypical company. Our prototypical company employs one estimator and three office
personnel. Our company works with about 50 different subcontractors, and takes about 25 jobs per year, with the
average job running about $50,000. We have established that our prototypical company also requires the following
modules in order to run their business effectively: General Ledger (GL), Accounts Payable (AP), Accounts
Receivable (AR), Job Costing, Inventory, Purchase Order, Equipment Tracking, Reporting, Sales Order/Work Order
Entry, and an optional Payroll module. For our scenario, we believe that training for one person will be needed, as
well as one year of product support.
We have also obtained the cost from each vendor for this particular prototypical company. Since module
requirements vary from company to company, we hope that this standardizing of product costs will help to clarify
what each program will cost on average.
We also decided to look at the program in general, focusing on eight specific areas. By evaluating the same areas
in each product, we hope to present a clearer picture of that product, its strong points, and what, if anything, it
lacks. This will help the small company find a product that will suit their needs, without paying for a dozen modules
it will never use. On the flip side, it also helps the multi-million dollar company that is in the market for enterprise
level software and does not want to upgrade their software every year.
The areas of evaluation were chosen based on feedback from software vendors, the editorial staff of the magazine,
and this reviewer. They are as follows:
1. Modules — It’s important to know what modules are included or available.
2. Learning Curve — Is the program easy to navigate? Is it user friendly?
3. Integration/Import/Export — Do all of the modules work together? Can you import information from third-party
software or export to spreadsheet programs, etc.?
4. Support & Training — Good support and effective training are necessities.
5. Security — Is it multi-level? Module-based? Menu-based?
6. Customization & Productivity — Are there user-defined fields? Can you get the information you need?
Will this product make your life easier?
7. Reports — What standard reports are included? Does the program offer integration with Crystal Reports,
etc.? Does it have customization capability?
8. Relative Value — This is subjective, but is the program worth the cost?
It’s important to remember that each of these programs stands on its own. We are not trying to compare
them side-by-side, but rather point out their core strengths and let you, the reader, decide what you need,
what you want and what you cannot live without.
The products reviewed here range from basic financial systems with a job cost module, to sophisticated programs
with upwards of 20 modules and add-ons. They are all good programs, varying widely in both size and cost. But
they all contain at least basic job costing capability, and many contain much, much more.
If there is a program that interests you, I suggest contacting the vendor or visiting their web site. Many of these
programs offer downloadable demos or trial CDs, and there’s no better way to choose a software product than to
actually use it.
I’ve had the opportunity to use all of these products. I believe they are all high-quality products, and I am confident
that you will find one that suits you.
Foundation Software — FOUNDATION® for Windows® (FIVE STARS)
800-246-0800
www.foundationsoft.com
FOUNDATION for Windows is an accounting system designed specifically for the construction industry. Not only
does Foundation provide construction companies with the tools needed to efficiently operate their business, but it is
also very simple to learn and use. The cost of FOUNDATION for our prototypical company is in the range of $7,500
to $12,000, depending on which of Foundations Software’s three training options is selected (on-site, classroom or
online). This price is good for up to a four-user system and includes six months of maintenance with unlimited toll-free
phone support.
Modules - 4.5 Stars
The following modules are included with the program: GL, AP, AR, Purchase Orders/ Subcontracts, Payroll, Job Costing and the Genie series of custom report and form designers. Additional modules available include
Consolidated GL, Equipment, Inventory, Time & Material, and Unit Price Billing. Also available is the Executive
Management module, as well as the Job Detail Analysis module.
Learning Curve - 4.5 Stars
FOUNDATION is specifically designed for both heavy and general construction as well as the specialty trade,
electrical and consulting industries. This allows users to easily track jobs, monitor work in progress, and produce
cost and profitability reports designed with the labor-intensive contractor’s needs in mind.
FOUNDATION’s menu structure is designed for efficiency. The menu bar at the top of the screen provides access
to all of the system modules. Each module has a menu containing three options: Daily Transactions, Maintenance
and Reports. This method makes navigating the system easy, even for new users.
New features in FOUNDATION 4.0 include the ability to assign security to Project Manager items. As well, the AR
Invoice Importer lets you import receivable data from other programs. To begin using the Job Cost module, you
simply define your units of measure, enter job phases, and establish cost code groups. Afterward, just define the
master cost codes and cost classes and you are ready to go. All of this is handled in the Job Cost module under
maintenance, so there is no need to search through the system for data-entry screens.
Import/Export/Integration - 5 Stars
FOUNDATION is a fully integrated system, so there’s no need for repetitive data entry. You can design your own
import/export options using the Genie Series, and the capabilities simply cannot be beat. A Direct Deposit Genie
lets you set up a report containing direct deposit information. You can also import employee payroll information and
export reports to other software programs, such as Microsoft Excel or Word.
Support & Training - 5 Stars
Several training options are available. You can choose to train on-site, attend classroom training or utilize the online
training tool. A very helpful user’s guide, and an excellent help system are available if needed. Unlimited toll-free
telephone support for the first six months is included with the purchase of a base package. FOUNDATION’s
maintenance program is available at the end of the six-month period. Online support is also available.
Security - 5 Stars
Security is multi-level, with menu-driven user access. Foundation Software allows you to assign security levels on
every menu item found throughout the program.
Customization & Productivity - 5 Stars
The Data Genie series, exclusive to Foundation Software, simplifies data manipulation. Tasks that previously
required programming knowledge can be done with a few clicks of your mouse. You can design custom forms for
your invoices, purchase orders/ subcontract, time & materials, and timecards. Logos and graphic images can also
be used for custom design. And with FOUNDATION’s date-sensitivity feature, you can create reports based on a
variety of date options including current to date, job to date, or year to date.
Reporting - 5 Stars
As mentioned, the program is date sensitive, so you can run historical reports with data still intact. Foundation
comes with a variety of built-in reports that are easily customized, or you can optionally use the Report Genie to
create hundreds of custom reports. When producing a Job Cost report, you can specify just how much detail to
include. The built-in report calculator allows you to specify report calculations, set your headers and choose your
defaults. Another new addition is the Executive Management Drill-Down Report, which provides managers with
more multi-level reporting detail. In addition, the Equipment Profit Report lets you track and monitor profit by
equipment.
Relative Value - 5 Stars
Foundation Software would be a good value at any cost. Easy system navigation ensures a short time frame
between installation and implementation. An excellent payroll module integrates with the other system modules,
produces certified payroll and can easily handle multi-state payrolls, a necessity in the construction industry. And
the Data and Invoice Genie Series pays for itself, both in increased productivity and ease of use. Making SQL
server easier is not a simple task, but Foundation Software has accomplished just that.
2004 OVERALL GRADE - ***** FIVE STARS |
