Construction Software Buyer's Guide

Pricing construction software systems

How much you'll pay for construction software depends largely on what type of system you choose to buy. Since prices can range from $500 to $100,000, the type of system you choose is pretty significant.

The extreme low end of the scale is off-the-shelf packages that primarily handle one focused area of your business. Self-contained estimating software, for example, is frequently purchased as a standalone application, and can cost between $500 and several thousand dollars. These type of purchases involve little installation help, training, or customization.

Systems that include high-end HR and project management functions, along with bidding and job costing, cost much more: often between $10,000 and $50,000, including installation and training. For companies with revenues between $3M and $50M, this large initial expense can be recouped in a year or two thanks to improved bidding and reduced expenses.

ASP pricing is typically based on monthly or annual user fees, but there are other creative pricing models out there. Some ASPs charge a percentage of the project value they're used for, while others charge a flat fee per month per project.

In addition to which modules you choose, you may face additional fees based on the number of users. Don't skimp! Make sure you get the right number of licenses to avoid hassles down the line. Often you can get volume discounts for larger purchases.

Don't buy on price alone
Choosing the right construction software should involve careful consideration of your needs, evaluation of features and capabilities, and comparisons of dealers. Specifically, it's about more than just price.

If you're comparing three solutions with fairly similar price tags and a fourth that's half the price of the others, you can bet there’s something lacking from the discount package. Placing an undue emphasis on price can lead to a purchase that ultimately fails to deliver the benefits you should expect. Moreover, skimping on price early on can cost you more in the future.

Support and training costs
Make sure the pricing information you get from each vendor details what training and customer support is included - and how much additional help costs. Some vendors provide unlimited telephone and online support; others charge by the minute or per incident after a set amount of free support.

Training sessions for your employees are more commonly priced separately. You may be able to choose from on-site, off-site, web-based, or video training, all at different price points. It's usually worth having at least some training to get your staffers up and running. Once you see how the system is working, you can then decide if you need more advanced training.

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