Tips for finding best fit tech and mitigating risk of ERP adoption:
Section 1: Tips to #buildTRUTH in selection process
1.a: Discovery and demos with detailed job info (with YOUR data)
Teaching vendors about your unique traits and workflows is critical, but HOW you teach them has big impact and will #buildTRUTH into the sales process.
We strongly recommend having vendors use your data to build a proof of concept. This can eliminate Smoke-stacking, which is when vendors oversell integrations and partnerships with other vendors. (see video for more info)
Here's a great list of job information to provide vendors:
1.b: Eliminate risk of cloud cuffing , which is when software vendors charge you subscription or license fees before they get you live. Recommendation: Ensure vendor is willing to make fees conditional on go-live. (see video for more info)
1.c: Eliminate risk of overages /handcuffing, which is when vendors attract you with low prices, then charge 200% - 400%+ in overages when you feel it's too late to quit. Recommendation: Ensure vendor will provide GMP (guaranteed max price) agreements for all services required for Go-Live.
1.d: Another good recommendation is to ensure annual fees align with value to 'subcontractors', as opposed to GC's.
Section 2: Tips for due diligence
Tip #1: 2x now saves 4x later
Double due diligence: Software adoption often results is overages that are 200% - 400%+ over the cost on contract so we recommend doubling the time you planned in making the decision. Subcontractors have little to no time for software selection but investing 2x time now will help expose risk and shortcomings so you can save 4 x later.
Tip #2: worthy references
Finding quality references: Look beyond the references provided and search for subcontractor specific associations for members who do the similar work to you AND who are customers of the prospective provider(s).
We also recommend speaking to 3-4 people in separate departments.
Another good way to find worthy references is searching the provider on LinkedIn and find their key sales people. Then look to see which companies those sales people are connected with to get a list of their potential customers who they did NOT provide as references.
Section 3: Services to ensure adoption and business continuance
Most implementation services include general level data import, process recommendations and training, yet subcontractors need significant additional work for successful adoption. As subcontractors have next to no time to complete the additional work, services providers need to step in.
IMPORTANT: Get a commitment for this....To #buildTRUTH in cost and adoption, have service providers include all services below for a GMP (guaranteed max price) while defining go-live and what a successful implementation looks like.
Recommended Services to include:
1. Collect, import and validate vendor list, customer list and relational data
2. Collect, import and validate employee list/safety/experience/HR data
3. Build GL account listing
4. Open jobs listing and cost code listing for replication in new ERP
5. Scoping for custom integrations
6. Prepare Payroll account defaults including Union, DB, CPR, fringe benefits where applicable
7. Items database development for each branch/company/division of labor - items must include all properties related to bidding, field and purchasing manager's perspectives such as:
8. Company logo and all external documents for replication in documentation
9. Sample GL Transactions for replication
10. Sample Check Stubs (Payroll, AP, Garnishment) for replication in documentation
11. Sample Job Cost/Job Budget for replication
12. Sample Reports (PO, AR Invoice, PM) for replication
13. Sample WIP for replication in new WIP and potential customization
14. Complete AR Aging (By Customer/Job) for tie off
15. IF you are looking to integrate an estimating system, you need to:
16. Outstanding retainage for entry (By Customer/Job)
17. Trial Balance (Same date as AR)
18. full historical AIA SOV's for manual entry to enable accurate retainage billing
19. Invoice & Cash Receipt Register for replication
20. AIA billing templates from all customer invoice template for replication in auto-progress billing template
21. All vendor invoices for mapping so PO matching tools can work
22. Complete change order log for replication
23. All sales Tax Rates/Reporting for replication
24. Monthly WIP Reports (Fiscal Year)
25. Employee YTD and Payroll Information – Pay Stub/Time Sheet
26. Payroll Register Reports for replication
27. Sample Reports (CPR, Union, etc.) for replication
28. Sample Direct Deposit File for replication
29. Sample Positive Pay File for replication
30. All open subcontracts for replication
31. Complete benefit plans/enrollment (ACA) for set up in benefits tracking
32. Remote introduction to customer, vendor and employee info
33. Remote introduction to inventory/material management
34. Remote introduction to vendor pricing, job special pricing and PO creation
35. Remote intro to payroll info; pay rates (union/davis bacon, prevail wage, benefits, safety cert etc.)
36. Open AR for replication and tie off
37. Open AP / Discount Report for replication and tie off
38. Confirm Trial Balance
39. Employee YTD's (Quarterly) - 940 & 941 for replication
40. Open Check Lists/Deposits for replication and tie off
41. Open / Pending Change Orders for replication and tie off
42. Bank Balance as of Trial Balance (All) for tie off
43. Bank Reconciliation (All) for replication in documentation and tie off
44. Job Cost to Date for replication and tie off
45. Budget's for replication and tie off
46. Pre-Live WIP Report for tie off
47. TRAINING for 3rd party estimating system import
48. TRAINING for Payroll/HR
49. TRAINING for Accounting/financial management
50. TRAINING for pre-construction
51. TRAINING for Job start up
52. TRAINING for Purchasing & material management
53. TRAINING for Job Costing
54. TRAINING for Document Control
55. TRAINING for Contracts & Subcontracts
56. 1st month end emergency data repair
(time sensitive data repair which is needed with new ERP implementations)
57. TRAINING for project management
58. TRAINING for estimators (if required)
59. TRAINING for field (if mobile apps required)
60. Continued core function training
61. Post-live punch list creation and resolution
62. 1st quarterly emergency data repair
63. CPA checklist and sign off
64. Post-live utilization assessment
65. 1st year end emergency data repair
66. Itemize all custom reports and/or custom work, imports/exports, mappings and APIs required so client can negotiate the cost of ensuring all custom work is made compliant with ALL future software updates as updates often break customization, imports/exports, mappings and APIs.
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