Building a Construction Tech Stack: A Contractor’s Guide

Every construction company uses a variety of software and technology applications: Some are purpose-built to solve a specific challenge, while others work as a platform to centralize solutions to a wide array of industry-specific needs. A tech stack is a group of software applications that work together to achieve business objectives and empower company leadership to easily view and analyze performance data. 

In construction, a company’s tech stack will typically include software designed for managing construction projects, estimating costs, preparing and submitting bids, scheduling, preparing pay applications and much more. Integrating all of these various tools into a central tech stack enables companies to make full use of the data they collect through these applications, making it easier to manage and analyze.

In this article, we’ll look at how construction companies select and assess software solutions to build a tech stack and share best practices for the industry.  

Why do contractors need a tech stack?

Contractors need a tech stack to streamline operations, improve data accuracy, and enhance communication between different departments and stakeholders.

Having an integrated tech stack allows contractors to solve specific business problems efficiently, whether it's managing financial data, scheduling, or ensuring safety compliance. The end goal is to complete projects quicker and with less money spent, improving the overall business.

Types of Software in a Construction Tech Stack

Broadly, there are two categories of software in construction: 

• Business software is used to aggregate project-level data, track overall company performance and manage day-to-day operations.
• Project software is used to manage all of the activities on a construction project and track project performance.

Business Software

Much business software is industry-agnostic — for example, no one makes a word processor specifically for construction. At the same time, software companies are increasingly specializing in a particular industry to solve unique challenges and specific use cases. 

• Enterprise Resource Planning (ERP) System

  A company’s ERP system acts as the central hub for all financial data, crucial for executive decision-making. Any software that touches financial data needs to integrate seamlessly with the ERP system.

• Accounting Software

  Accounting software (such as an ERP system) enables financial reporting, managing accounts payable and receivable, as well as general ledger functions.

• Human Resources Software

  HR software helps manage employee information, benefits, and payroll. This software needs to integrate well with accounting and ERP systems to ensure accuracy.

• Office Suite Software

  A variety of office suite applications — including email, word processing and spreadsheets — are used to manage day-to-day communication and business operations. These tools are essential for communication and documentation.

Project Software

Because this industry is project-based, most of these applications are tailor-made for construction. A contractor may select a standalone solution for each activity, or choose a solution that offers a suite of these tools in a single, centralized project management platform.

Preconstruction

• Estimating Software

  Estimating software is used to calculate the costs associated with a project, covering everything from materials to labor. The pre-construction team uses this software to project backlog and estimate future work.

• Bidding Software

  Bidding software helps organize bids received from subcontractors and compile them into a master bid package for the project owner. Most work is negotiated through long-standing relationships with clients, but accurate and organized bidding software is still necessary to manage this process.

• Prequalification Software

  Prequalification software is essential for vetting subcontractors to ensure they meet the necessary requirements and standards for a project, thereby hiring qualified professionals and mitigating risks.

• Permitting Software

  Permitting software helps companies apply for and track the status of building permits.

Operations

• Scheduling Software

  Scheduling software is vital for planning the timeline of a project. However, finding one that works well with Mac can be challenging. Currently, new scheduling software is being tested to address issues with previous systems, which often had problems like disappearing schedules. 

• Workforce Management Software

  Workforce management software helps track labor on site and manage daily reports, ensuring accurate data on who is working and what has been accomplished each day.

• Equipment Management Software

  Equipment management software enables efficient scheduling and tracking of owned or leased equipment, from drills to fleet trucks to front loaders. Some companies incorporate this into their project management to ensure all materials are on site when needed.

• Inventory Management Software

  Inventory management software allows the company to track stock of materials and consumables, like PPE, that need to be replaced. 

Financials

• Contract Management Software

  Contract management software organizes contractual documents and project requirements for easy access to drawings, specifications and payment information.

• Project Financial Software

  Project financial software enables project managers to track billings, manage costs and oversee the project budget. This software is often integrated with the main accounting system to provide real-time financial data across multiple projects.

• Invoicing Software

  This software manages pay applications from subcontractors and sends out pay applications to project owners, streamlining the payment process and ensuring timely payments.

Initiating New Technology Solutions

Technology isn’t a solution unto itself — it is designed to solve a problem or increase productivity. The need for new tech most often comes either from the field (bottom-up) or from the company leadership (top-down). Depending on which direction the request comes from, the approach to evaluation can differ slightly.  

Bottom-Up: Field Requests

When software requests come from the field, the process typically starts with a project manager, superintendent or someone else with a specific need. The software is then evaluated internally. a group of field staff who would benefit from the solution. After identifying a use case and testing the software on one or two projects, it is presented to upper management for approval. If the software proves beneficial, it could become an enterprise-wide solution.

For example, a superintendent may request a new scheduling system that includes the ability to solicit input from subcontractors and produce look-ahead schedules. 

Top-Down: Executive Requests

In the top-down approach, the process starts with identifying a problem at the executive level. These requests often stem from the desire for clearer or more accurate reporting. A CFO might want better visibility into real-time financial performance across all projects. 

Once the problem is articulated, multiple software options are researched, starting with about 15 and narrowing down based on their ability to solve the problem. Demos are conducted, and the software’s integrations are tested. After further narrowing down to two or three options, a think tank with key stakeholders is formed to make a final decision. Once a software is selected, the implementation phase, including training and support, begins.

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Best Practices for Building a Construction Tech Stack

Building a tech stack requires a conscious, intentional approach. Adding new software too quickly or without proper preparation can lead to poor performance and increased resistance to new technology.

Establish evaluation criteria.

When choosing software for a tech stack, it is helpful to establish the decision criteria that will be used to evaluate all options. Different software solutions can be plotted on a spreadsheet to compare how well each one meets the list of criteria. 

• Problem-Solving

  Identify the specific problem the software should solve. Without a clear problem to solve, adding technology for the sake of it risks creating more issues.

• Integrations

  The software must integrate well with other tools in the tech stack, particularly the ERP and/or project management platform. Look for solutions with open APIs that allow for seamless data transfer and compatibility with existing systems.

• Usability

  The software must be user-friendly. If it's not easy to use, staff won't adopt it, and it won't be effective.

• Support

  Evaluate the level of support offered by the software provider. Good customer support can significantly affect the software's successful implementation and ongoing use.

• Scalability

  The software should be able to grow with the company and adapt to new needs as they arise.

• Cost

  Consider both the upfront cost and the ongoing costs of maintaining the software. Finding a solution that provides good value for the investment benefits operations and the company’s bottom line.

Battle-test potential solutions.

While the IT department is often driving the research and testing of new technology, it is important to involve the people in the field that will actually be using it. Put potential software through rigorous field tests to ensure it holds up, is easy to use, and delivers on its promises. 

Even after a solution is chosen, it can be helpful to buy a license and put it through another round of focused testing on a single project before rolling it out to the rest of the company. This allows stakeholders to see how it performs in a real-world setting and gather feedback from the team using it. Depending on whose budget the software cost goes to, it can even create a financial incentive to ensure it is adopted and adequately tested.  

Recruit a team.

To engage key stakeholders, many construction companies establish a tech committee that includes a mix of personalities and roles. For instance, in an operations project, the VP of Operations, the most tech-savvy project manager, the most resistant-to-change project manager, an assistant project manager, and possibly some field staff would be involved. 

By conducting thorough research and involving a committee of stakeholders, contractors can ensure that the software selected will meet their needs and integrate smoothly into operations. Relying on community forums and industry groups for additional insights can also be invaluable in making informed decisions.

Create an adoption plan.

The perfect software solution will never be successful without adoption. If no one uses a new tool, or teams use it inconsistently, the company will never unlock the benefits of its full potential. 

While executive buy-in is important — they are often the ones who control the checkbook, after all — creating buy-in and adoption across the company requires identifying and engaging the right people.

Set realistic expectations.

It takes time to see results from a new addition to the company’s tech stack. When “selling” a new software to the team — whether a superintendent or an executive — it is important to set realistic expectations for a smoother transition. Over-promising and under-delivering can lead to significant setbacks. 

Implementing new technology is about incremental changes rather than dramatic leaps. Encourage stakeholders to visualize the end result — a result that won’t be achieved instantly — and understand that improvements come in steps, not all at once. This gradual approach allows for adjustments and refinements, leading to sustainable and effective adoption.

Approaching a construction company's software needs as a tech stack rather than individual tools can ensure that the integration of solutions benefits many stakeholders within the company. A tech stack is an ever-evolving technological core that can spur continuous improvement, support safety and quality, and improve business outcomes for construction contractors' complex operations.

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