GCC - if they are embracing project management software?

Project management software systems have come a long way since their inception in the 1950s. Enterprise resource planning (ERP) software dominates modern-day construction activities, and the Middle East’s project management segment appears to be catching up with its global counterparts.

Companies adoption of the project management software makes it one of the few regional developments to utilize such technology, but industry experts believe there is a long way to go before the practice becomes commonplace. Some firms display reluctance towards the adoption of project management software due to concerns relating to the technology’s cost.

In the context of any sector, professionals working on manual tools, such as Microsoft Excel, will find it difficult to migrate to ERP. Construction companies in the UAE are more inclined towards using customized and flexible solutions that are available locally. They prefer these to international products, which cost around 30% to 40% more.

The most common reports that contractors demand cover project profit and loss (P&L) and ledger stock. These reports indicate a prioritization of data required by contractors, which on low-cost projects, might well double up as project managers too.

Information provided by high-quality project management software during the initial stages of construction will cover five key areas, which are of significance to the entire development team. Material, labour, equipment, and sub-contracts or overheads: these are the four dimensions within which the project’s expenditure that will be accounted for. Adding that, quality and quantity control within these parameters is of significance to contractors and project managers alike.

The problem is that information technology (IT) hasn’t significantly penetrated the construction sector yet, and IT adoption is at a very infant stage. Barring major organizations, some mid- and low-segment companies use Excel and stand-alone accounting systems – instead of integrated technology – for their jobs.

Many companies are not aware of the benefits that integrated solutions offer. Cost is indeed one factor, but that’s because their perspective is different. Ideally, if a contracting firm is working on a $100,000 project, then 1% of that for IT won’t be a big amount to spend.