Using ERP System to Troubleshoot Claims issues in Construction Industry
Construction claims is not an uncommon sight in the Construction Industry. They occur often due to a host of factors namely design alterations brought about during the post-tender phase. The other reasons for such claims are the implementation of the project for short time frames with improper site investigation, tender cum contract documentation. Such claims by contractors as well as consultants arise if they fail to present claims in compliance with the steps laid out in the contract conditions; furnish details of the extra costs and duration as evidence.
The Construction Industry has witnessed claim disputes due to lack of project completion within the time frame or change of its scope. A well-coordinated claim management ERP system that employs and systematize resources for advancing a claim from its identification through proper documentation and presentation prior to it reaching the negotiation and settlement stage must be followed.
The Six Stages of Claim Process
A claim procedure comprises of six stages beginning from identification and succeeded by notification, examination of the legal and factual basis of the claim and the documentation stage including measurement records, drawings or cost breakdown. The fifth stage involves submission and presentation of the completed document to the client for evaluation. The last stage is that of negotiation claim with the owner and sorting it through mutual resolution.
Numerous factors like the inadequate detailing of the exact scope of the contract job and design brief or acceptance of an improper tender offer without clarifications will ultimately affect the data captured as well as the justification needed for the claim.
Technology As A Game Changer
Technology can be a differentiator for growth in the Construction industry segment. Adapting technologies like Enterprise Resource Planning (ERP) will help such companies to streamline their projects in the construction segment.
The ERP System
ERP can assist in the construction claims by resourcefully managing the cash flow and delayed payments issues of construction companies. Cash flow problems are the result of wrongly estimated project costs. The ERP of contracts ledger permit you to precisely monitor accrued and real costs against budgets and track any overruns. Using business intelligence and feedback tools as part of ERP application solution one can present accurate predictions of the cash position and monitor cash flow. You can automate tasks such as sending reminders with ERP which supports a productive workforce.
Synergix E1 ERP system has the Progressive claiming, Biometric timesheet and quotation module that helps in the accurate documentation of claims. Its user interface is convenient to use and has assisted in automating the operation process from Project budgeting cum costing to financial reporting. It also supports many projects billing process by phase or through Progressive claim.
The ERP system with its data coverage empowers an organization to proactively succeed business challenges and deliver business requirements. Not only that, Synergix Technologies extends customization services to resolve complex requirements and business needs, to view more on how we can assist you, please head to Synergix Technologies web page for more understanding on how ERP system can help companies in the Construction industry, please look at our previous post: 5 Ways Construction Companies Can Control Complex Business and Enhance Growth with an ERP Software