Site cost is known weeks later, when the bills finally arrive.
What ERP Infra does: Every cost lands on its site the same day. Budget, committed, actual and balance on one screen.
Why it happens
Cost is assembled after the fact, from supplier bills, contractor bills and a cost sheet in Excel. By the time a site is known to be over budget, the material is used and the labour is paid.
Orders placed but not yet billed are the blind spot. A project can look healthy on paid bills while the committed cost has already passed the budget.
of construction projects finished within 10% of their budget in the three years surveyed. Only a quarter finished within 10% of their deadline.
KPMG Global Construction Survey, 2015How ERP Infra handles it
Cost lands the day it is spent
Labour, machinery and material used are costed from the day’s site entries, not from bills that arrive later.
Committed cost is counted
Orders placed but not yet received are shown beside actual cost, so the balance is real.
Per project and per site
A project is a collection of sites. Cost, stock and progress are tracked at both levels.
Physical against financial progress
Where a bill of quantities exists, schedule activities link to it, so work done and money spent can be compared.
Measured in the pilot
Budget against actual per site, with the committed cost included. Shown with your numbers, not ours.
Questions people ask
- Why do construction projects go over budget?
- The common causes are material that is over-issued or lost, purchases made on quoted rate instead of landed cost, bills paid without checking, idle labour and machines, and rework. What they share is that each is small on the day and recorded nowhere, so the overrun is only seen when the accounts are closed.
- What is the difference between committed cost and actual cost?
- Actual cost is what has been spent or consumed. Committed cost is what you have already ordered but not yet received or been billed for. Budget minus both is the real balance, and ERP Infra shows all four on one screen.
- Does ERP Infra replace our accounting software?
- No. It runs the projects: purchase, stock, labour, machinery, daily reports, costing and client billing. It does not replace your accounting software or file statutory returns.
Let’s put every site on one screen.
Tell us how many projects and sites you run. We will walk you through the system on a call and suggest where a pilot would pay back first.
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