Tools & Equipment Review: Construction SoftwareFrom project management to design, software programs help make pros efficient and profitable.

Source: BUILDING PRODUCTS Magazine

Publication date: 2007-09-11

Until four years ago, Hauser Homes in Charlottesville, Va., bid all jobs individually, printing out 60 to 80 copies of five to seven plans. Since installing BuildTopia's Web-based construction management software, the home builder can now electronically bid on multiple jobs and print out final plans for contracted trading partners. And by locking in prices with leading trade partners for one year, says director of operations David Winship, the cost of Hauser's homes can be more competitive since building costs are more consistent.

Hauser's is just one example of the efficiencies builders can achieve through various types of construction management software, and it's enough to make cost-conscious builders reconsider slashing IT spending during the market downturn. Desktop and Web-based management software programs can not only save time and money in the short term, but also can provide a head start when the market begins ramping up again.

"Unfortunately, IT people are viewed as a luxury during a downturn," says Craig Schweikart, formerly of Shinn Consulting and now an executive at software provider Constellation HomeBuilder Systems. "But the people who can reduce your costs are your estimating, purchasing, and IT people," he explains, adding that builders should take advantage of the downturn to focus on their back-office operations.

Though the dot-com boom and subsequent bust—marked most notably by e-commerce consortium BuildNet's collapse in 2001—made many builders wary about how well technology can deliver on promises to improve business, the boom years fueled important product development. And in the time since, software providers have continued to launch and refine products that aim to make every stage of the building process more streamlined.

Companies such as BuildTopia, Builder MT,Sage Software, and Dynami Solutions now are delivering products that can help builders do automated bidding on the Web, design workflows on the fly, and even spec a new home online easily.

BUILDING EFFICIENCY
Builders like Hauser that started on the automation path several years ago are now reaping the benefits. This story explores several software packages that can help builders garner the same results. In addition to the cost savings of printing fewer sets of plans and locking in prices, BuildTopia allows the builder to operate so efficiently that it can afford to keep people during the downturn. "We now have 15 live projects with all different product types," says Winship, who says his capacity is about 200 homes. "We're on track for about 150 this year, and I don't have to let anybody go other than my supers."

Another product helping builders manage more efficiently is Builder MT's business process management (BPM) tool. Similar to Microsoft Visio, Builder MT's BPM lets users easily drag and drop workflow diagrams to design a new process.

Jason Schaeffer, president of Tim Schaeffer Communities in Berlin, N.J., says his company got started with Builder MT's BPM last fall by identifying 10 standard business processes, or tasks, that the company uses daily. In one example, the company created a workflow for variance purchase orders in which every time the builder experiences a 1 percent cost variance, the system sends an e-mail to Schaeffer and the company's top execs. So instead of receiving a five-page report at the end of the month, Schaeffer receives real-time variance information.

One of the more interesting products to hit the market this year is Dynami Builder from Dynami Solutions, a Web-based program that helps builders manage sales, mortgages, selections, schedules, and warranties. It even has an interface that lets home buyers spec a home the way they would a Dell PC, a feature that Dynami believes will be widely used in the years ahead.

Kevin Ogle, president of Dynami, says what really separates Dynami from the rest of the crowd is the close relationship it has with Dynami Mortgage, a captive mortgage company founded to support the software business. Dynami's business partner, Jagoe Homes of Owensboro, Ky., uses Dynami Mortgage to run credit checks on prospective home buyers and offer them immediate feedback. No more waiting for up to three weeks to hear from the finance company.

By using the Web-based options feature, a Jagoe salesperson can walk the buyer through the selections process with a realistic budget. The buyer doesn't overbuy and communications are improved, since all the selections information is loaded and sent electronically to all the parties involved in the building process, including the buyer, the builder's back-office workers, subcontractors, project supers, and Dynami Mortgage.

SOMETHING FOR EVERYONE
BuildTopia and Builder MT are geared for mid-size production builders that build more than 100 homes, and Dynami is geared for companies that build more than 25 homes. But there are plenty of options available for smaller, custom builders.

Michael McCutcheon, president of custom builder and remodeling company McCutcheon Construction in Berkeley, Calif., says the new Executive Dashboard in the latest version of MasterBuilder construction management software is a handy tool. "The dashboard feature gives me a snapshot of how my business is doing," he says, adding that he can get a quick fix on his cash position, job status, change orders, and accounts receivable and payables.

"A lot of builders just want to know 'What do I owe and what do people owe us?'" McCutcheon explains. "This puts it right in your face and you can drill down off the dashboard." Solutions aren't limited to project-wide management, with a number of task-specific software tools available to make various aspects of the building process simpler and cheaper. George Geiger, president of the residential division of Shamrock Builders in Indianapolis, says SelectionWare, a Web-based system that lets home buyers make selections and communicate with the builder online, has eliminated the need to dedicate one person to managing selections.

"In the past, we had a very hard time keeping options up to date," he says. "We used to give customers addendums with something like 50 changes, and when customers saw the list they would start asking questions and re-evaluating their decisions. Now, SelectionWare keeps a history of when a customer makes changes, automatically updates the schedule, and keeps a running tally of what the customer spent."

Builders also are having their architects or designers use CAD software to help them sell upgrades. Glenn Travis, president of Ashland, Mass.-based GMT Home Designs, an architecture firm that works closely with many custom builders, says at least 80 percent of the time the budget he starts with will grow by 30 percent to 40 percent just by showing home buyers design features in ChiefArchitect, a popular CAD program among builders.

"What I do is set up an LCD projector and then hand the home buyer laser pointers so they feel a part of the decision-making process," says Travis, who adds when buyers see their plans in 3-D they tend to discover that what they originally wanted doesn't quite work.

Travis says changes are then clearly communicated and when buyers see precisely how much linear footage is involved, they are more apt not to question the increased price.

Builders are often viewed as technology laggards, but that's slowly changing as more pros find software tools that help them run their businesses more efficiently. Make the most of the downturn by using your computer to get your operations in order.

The Future of Builder IT: Five software trends to look for in the months ahead.

• Improved product development and support. Consolidation and acquisitions among software manufacturers are putting products that languished for years, such as BuildSoft and Builder 360, now owned by Constellation HomeBuilder Systems, into the hands of software companies willing to invest in new product development and support teams.
  
  
• Better software for custom builders. The time when builder software was only geared toward larger-scale production builders has receded. Today, products from BuildLinks, BuildTrend, Corecon, and 6x6 Builder, among others, service the needs of small builders. Tack on Sage Software's investment in Peachtree and Constellation's promise to invest in BuildSoft and there's never been a time custom builders have had so many viable choices.
  
  
• More Dell-style interfaces. Dynami Solutions was one of the first companies out of the box with an interface that lets home buyers spec a home the way they would a Dell PC. While buying a home is complicated and is tough to fully accomplish online, consumers expect to do business on the Web, so builders need to think about offering this type of feature.
  
  
• Enhanced collaboration. A recent IT survey by Builder magazine, a sister publication of Building Products, found that 47 percent of big builders and 19 percent of small builders use the Web to collaborate with subs and suppliers. Those numbers will surely grow in the years ahead as builders slowly convince subs that it makes more sense to post schedules, purchase orders, payment information, and documents on a Web portal that users can access anywhere an Internet connection is available.
  
  
• Increased use of handhelds and smart phones. Apple's release of the iPhone in June expanded the profile of all-in-one communication devices. While most builders will more than likely stick with the BlackBerry, use of the iPhone and Samsung's BlackJack will increase. Recognizing this trend, just about every software developer in the industry offers a handheld version of its software.

-- BUILDING PRODUCTS

ChiefArchitect. Using CAD software like ChiefArchitect, builders can show home buyers how a home will look in both 2-D and 3-D views, helping to sell upgrades throughout the house, especially in the kitchen. Some builders report a 30 percent to 40 percent increase in upgrades due to the slide show they show home buyers in ChiefArchitect. The latest version comes with more than 340 CAD details integrated into the core product. 800-482-4433. www.chiefarchitect.com.

Dynami Solutions. Using Dynami Builder, home buyers can spec a home the way they would a Dell PC. The core product helps builders focus on the nitty gritty of managing sales, mortgages, selections, schedules, and warranties. The system also lets builders customize reports. 888-744-5418. www.dynamisolutions.com.

Corrigo. Service technicians armed with handhelds can use Corrigo's customer service application to manage warranty calls. The system pushes schedule information to the service techs in the field, who can then notify the back office by signing off on their handhelds when they complete a repair. The application is a time-saver for service techs who spend most of their day in the field. 888-826-5720. www.corrigo.com.

MasterBuilder. The Executive Dashboard gives custom builders a quick snapshot of their business. Builders can pull up the dashboard and view the company's cash position, job status, change orders, and accounts payable and receivable. The software also now has the same high quality of estimating tool that Sage builds into its Timberline Office software, a product geared for production builders. 800-726-6278. www.sagemasterbuilder.com.

HomeMinders. More often than not, expensive warranty claims can be prevented if homeowners maintain their homes properly. This new Web-based service sends monthly maintenance reminders to home buyers. Homeowners can log on to a customized Web page with the builder's logo and click on links to local contractors. Builders also can view real-time reports of their customers' traffic on HomeMinder. 888-863-8449. www.homeminders.com.

BuildTopia. One of the first Web-based business management systems for home builders, developers, and sales companies, BuildTopia allows users to track customers, projects, and units using one fully integrated system. Subscribers can manage leads, prospects, customers, selections, job costing, projects, and warranties. Subs, suppliers, and home buyers have access to all core processes through online accounts linked to their builder. 800-773-0711. www.buildtopia.com.

SoftPlan. CAD software from this vendor can display how the sun hits the house at critical points during the day, a feature that comes in handy for builders working on teardowns in neighborhoods where this is an important issue. One of the high points on a list of more than 400 improvements in the latest version is a "Building Options" feature that lets builders show customers a 3-D model of how different options look. 800-248-0164. www.softplan.com.

Constellation Design Center. Meritage Homes was the pilot company for this Web-based design center software, a system that lets builders work closely with home buyers to design the features of the house. For example, if a buyer wants carpeting where tile was originally specified, they can change products with a click of the mouse. Meritage integrated the selections features into its Oracle EnterpriseOne back-office software. While EnterpriseOne is a high-end application, Design Center can be scaled for mid-size companies. 888-723-2222. www.constellationhb.com.

Builder MT. The business process management tool from Builder MT lets builders tailor workflows specifically to their companies. This photo maps a builder's variance purchase order process. BuilderMT also allows builders to electronically send work orders and manage production schedules. 888-757-1991. www.buildermt.com.

SelectionWare. This Web-based software from Custom Partnership Networks lets home buyers make selections online and updates the customer's tab as they move through the buying process. The company says the program can cut the time it takes to execute the home-buying process in half. Custom builders can make their companies more efficient by using standardized documents and posting blueprints and schedules electronically. 317-585-9200. www.selectionware.com.