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10 Risk Factors That Can Be Handled With The Best Software For Contractors

There are several risk factors that can delay a project or create losses in the business for contractors. With the best software for contractors, you can manage these risks.

Here is a comprehensive list of risks that contractors can manage with an ERP solution:

1. Does everyone know about the design changes?
Sometimes, due to technical challenges such as an obstacle in the construction path, changes are made to the approved design. If you have a centralised ERP that sends out notifications to relevant team members, then everyone gets an update. All the team members will follow the updated design.

2. Who approves?
Everyone in your team will be able to view the names of all the people as well as their departments that will approve the projects. Also, the approvals can be queued up on a manager’s dashboard as part of their tasks if your company uses an ERP solution. This avoids delays in the approval process as well.

There can be several team members working on various projects. What if someone leaves the project midway due to health reasons or leaves the job for better opportunities. You can avoid confusion amongst team members and vendors by assigning a new manager to the project in the ERP that updates the relevant ERP users.

3. Missing machinery/material
Since real-time tracking of materials and machinery is available through an ERP platform, you no longer need to worry about where to start looking for your lost assets.

4. Where to find this document?
Your business may be handling multiple projects. In an ERP system, all the documents are organised in categories in centralised cloud storage. Team members can access these documents easily from any place, at any time using a computer or mobile device.

What this means is, nobody needs to wait for other team members to become available for gaining access to documents that they are authorised to view.

5. Shortage of workers or materials
Many a time, there are situations when certain project sites face a shortage of materials or skilled workers. An ERP clearly shows excess resources or idle workers on your project sites. You can move them to the work sites that have a shortage problem.

You need to order new materials only if there is an actual need. Also, by moving resources and workers, you do not end up with wastage of resources or lost work hours (of skilled workers) that impact your profitability. That’s how an ERP solves resource planning issues.

6. Which vendor to choose?
Invite proposals, shortlist vendors, assign work and manage vendor activities using a single user-friendly interface with an ERP software.

7. Are there any issues with vendors?
Build long term relationships with your vendors. Take, for example, the vendor management module of an ERP such as OMNI ERP, an ERP software for contractors. India’s reputed businesses use OMNI to manage vendors because vendors can access all project documents relevant to them through their cloud-based ERP.

The automated billing process through the vendor portal simplifies their interaction with the project team and payments are taken care of on time.

8. Is the budget getting out of hand?
You can track the inflow and outflow of funds by viewing the financial data recorded in your ERP system. The amount spent on each contract project undertaken by your business and its profitability can be easily available through a single dashboard.

No need to make calls or send emails to get the records. You get the transparency that you seek by having direct access to all the financial files that you need at any time.If you anticipate a spike in the budget due to fluctuating market conditions then you can take the necessary steps to manage the risk that comes with it.

9. Are we going to miss the deadlines? What about the updated schedule?
An ERP enables your team members to track the project as per the schedule. In case, due to internal or external circumstances,if the project gets delayed, you can update it in your ERP project schedule. This way everyone sees the updated schedule and a notification can be shared to update all relevant team members.

10. Will the proposed project be profitable?
Your business needs to generate profits for financial stability and growth. An ERP with project management functionalities can help you create project estimates to understand the viability of new projects.

Once your project work begins, continuous monitoring of budget, resources and time allow your teams to ensure that you can complete the project within the proposed budget and timelines. Real-time tracking allows you to identify and mitigate risks promptly.

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Manage your risks and boost your profitability with OMNI ERP, one of the best ERP for contractors. Contact _____________

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