No single view of projects and operations
Site progress is in the engineer’s weekly report, purchase orders are with the buying team, and costs reach finance at month-end. Management sees each project in pieces.
ERPNext industry solutions
Construction ERP in Saudi Arabia
When projects, accounting and purchasing each run in a separate system, costs slip out of sight until the phase is over. IBAN brings them together on ERPNext for contractors in Saudi Arabia.
Understand the industry first
Problems construction ERP solves
Contractors in Saudi Arabia describe the same problems to us again and again. Most of them trace back to project data split across several systems.
Late project delivery
When planned and actual progress are compared by hand, a delay is found after it has already pushed back the next phase.
Costs running over budget
If BOQ items are not tied to actual spending, an overrun appears when the phase closes. By then the money is gone.
Weak coordination between departments
Engineering, finance and purchasing work in separate tools. Requests get entered twice, approvals wait, and no one can see which desk is holding them.
Manual entry and scattered reports
Before each progress meeting, someone gathers figures from every site by hand. Checking them can take longer than the meeting itself.
Hard-to-track progress claims and subcontractors
Interim claims, retentions and subcontractor payments depend on the contract terms and on what the site has finished. Tracked apart from both, claim amounts and balances drift.
Key features
What construction ERP software gives you
Planning, execution, accounting and purchasing connected, from tender documents to progress claims. Standard ERPNext covers projects, budgets and purchasing. The BOQ and progress claim documents are added during implementation.
Pricing and bills of quantities
- A BOQ linked to costs and purchasing
- Bid pricing prepared before the contract is awarded
- Estimated price compared with actual cost after execution
Contracts and progress claims
- Accepted bids turned into contracts and sales orders
- Payments, penalties and retentions tracked against the contract
- Completion percentage from project tasks, with interim claims billed as Sales Invoices
Variances and tracking
- Schedule and cost variances for every project
- Budget checks that warn about, or stop, a Material Request or Purchase Order above the approved amount
- Dashboards showing where each project stands
Connected departments
- Materials issued to a project and purchase costs booked to it
- Supplier quotations compared side by side before you order
- Timesheets and labor costs charged to the project
In practice
ERPNext for Construction in practice
The day-to-day work, and where each part of it connects to the accounts and to your reports.
- Full control of cost and budget
Set a Budget for each project or cost center, and ERPNext can warn or block a purchase that goes over it. You see the overrun when the request is made.
- Contracts and progress claims
With contract lines tied to the BOQ and to actual spend, each interim claim is built from recorded progress, and the figures match what the site reports.
- Close project tracking
Project reports show completion percentage, schedule variance and cost per line item before the site meeting starts.
- Departments that work together
Purchasing, stores, HR and accounts post to the same project. A site request moves from Material Request to Purchase Order to receipt without being keyed in again.
- Where each project stands
A dashboard for each project shows work completed, money spent, and the budget and time still left.
ERPNext
Construction dashboard Live view
Open orders 48 ▲ +12%
Invoices this month 126 ▲ +9%
Collected 82% ▲ +4%
Open tasks 31 ▲ +6%
Monthly revenue
JanFebMarAprMayJun
Key items
1 Full control of cost and budget 48
2 Contracts and progress claims 126
3 Close project tracking 82%
4 Departments that work together 31
Status breakdown
- Full control of cost and budget
- Contracts and progress claims
- Close project tracking
- Departments that work together
Workflow
From tender to execution, inside the system
The path a contractor follows on every project, in the order we set it up in ERPNext. From the BOQ onward, each step is recorded and linked to the one before.
- 01
Buy the tender documents
Get the tender package and study the scope of work and technical requirements.
- 02
Prepare a detailed BOQ
Break the work into items, with quantities and specifications for each.
- 03
Price each item (cost build-up)
Materials, labor, equipment, subcontractors, overheads, contingency and margin.
- 04
Supporting purchasing cycle
Collect supplier quotations for materials and services to check your prices.
- 05
Consolidate cost and submit the offer
Roll every line into a cost sheet, then prepare the technical and commercial offer and submit it.
- 06
Sign the contract and open the project
Sign on the agreed terms, set up the project, allocate resources and issue purchase orders.
- 07
Execution and supply
Carry out the work and get materials to site on time.
- 08
Progress claims
Bill finished work through interim progress claims.
- 09
Reporting and monitoring
Follow the project’s financial and technical progress in reports and dashboards.
Why IBAN
Why contractors choose IBAN
We know how contracting companies run projects, and we set ERPNext up around that, from the first review of your workflow to support after go-live.
Analysis before implementation
- A detailed review of your company’s needs before setup starts
- A look at your current workflow and where it breaks down
Customization and training
- ERPNext set up around your company structure and projects
- Training for your whole team, site to head office
Support and results
- Technical support and advice once your projects run in ERPNext
- Less time compiling reports, and profit you can see project by project
Related modules
ERPNext modules for Construction
FAQ
ERP for construction companies: FAQs
Is ERPNext a good fit for construction companies?
Yes. Projects and contracts are linked to purchasing, stock, costs and accounting, so you can follow progress and profit project by project.
Does the system handle bills of quantities (BOQ) and progress claims?
Not as standard documents. ERPNext has no built-in BOQ or progress claim, so we add them during implementation on top of Projects, Budget and Sales Invoice. The BOQ then links to costs and purchasing, and each interim claim carries its payments, penalties and retentions.
How does it help control budget overruns?
You set a Budget against the project or cost center and choose whether ERPNext warns or stops a transaction that exceeds it. The overrun is caught at the purchase request instead of at the end of the phase.
Can I manage subcontractors and suppliers?
Yes. Suppliers and subcontractors go through the same purchasing cycle, and their orders and payables are linked to the project.
Does it suit companies running several projects or sites?
Yes, and this is one of its main uses in construction. Each project keeps its own phases, costs and expenses, and management can compare them side by side.
How do I get started with IBAN?
Book a consultation. We look at your projects and how work moves between site and office, set ERPNext up around your company structure, train your team, and stay on for support.
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