Like it or not—if you’re a subcontractor (or work for one), you need to get a grip on the ins and outs of construction technology and how to build the best construction tech stack for your business.
Construction technology is a category of digital tools that help construction companies do their work. There are more than 3,500 software tools designed to fix various problems plaguing the industry. These technologies are leading to massive gains in efficiency, stabilizing operations, and improving profitability.
You’re likely already using some of them today to help your business be more productive. But you probably licensed each of them to complete a specific task (or set of tasks) and didn’t think much about how they could or should work together.
If your approach to implementing software in your business has been haphazard, this article is for you. Keep reading for a basic understanding of:
- What a tech stack is and why it matters
- How to build the right tech stack for your business
- Common tools in a construction tech stack
- Recommendations of the best tech tools for subcontractors
- Tips on choosing the right construction software
What’s a tech stack?
A “tech stack” is a jargony way of referring to the collection of technologies that help your company do business. It includes any tools you might use during the sales process, to manage projects, or for bookkeeping.
Companies have been known to visualize their tech stacks as diagrams that show which workflows each tool supports and if/how they connect. Most people use a workflow diagram template from tools like Miro, Figma, or even PowerPoint. Some get creative, illustrating their tech stacks in the form of hamburgers and cities.
How do you build the right tech stack?
There’s no standard blueprint for building the right tech stack because software isn’t one-size-fits-all. Which tools your business needs in its stack depends on factors like your company’s size, industry focus, and types and volume of projects.
Some companies start with an all-in-one platform that addresses most of their business needs. Others look for specific solutions purpose-built for each stage of their workflow. There are pros and cons to each approach.
To build the best tech stack for your business, look at your processes and problems to identify where technology can add the biggest value.
Document Workflows
Before you research tools, take a step back to document all the workflows in your business.
You have:
- pre-construction processes like bidding and estimating,
- construction processes like project and materials management, and
- post-construction processes like accounting.
List them all out, including:
- Who’s involved with each process?
- What tasks do they need to complete for each process?
- What software, apps, or other digital tools do they already use (if any) to do their jobs?
Identify Challenges
Next, figure out where in your workflows you’re facing challenges and which are causing the most detriment to your business.
Technology can address some of subcontractors’ biggest problems, like:
- The inability of project management and field teams to stay on the same page
- Project delays driven by global supply chain shortages and convoluted procurement processes
- A broken payment chain that has you fronting money months in advance of getting paid
Ask yourself:
- What processes are taking the most time?
- Where are the most mistakes happening?
- What’s wrecking project health or profitability?
Solving these top challenges should be your primary focus.
Research Solutions
With your shortlist of priorities, you can search for solutions. There are lots of ways you can go about identifying the best subcontracting software.
Your fellow construction buddies are probably full of recommendations. Software directory sites like G2 and Capterra have thousands of reviews on construction-specific software. Industry trade shows can also be a great place to find new vendors. Trade associations usually have trusted software directories as well as chat boards where members recommend tools. And there’s always Google.
Whatever your favorite research sources, identify a couple of options for each problem you’re trying to solve. Visit their websites. Find out what kind of results other subs get from their tools. And schedule some demos.
Show up to the demos with a list of all your needs and some key questions for each vendor. You might want to ask things like:
- How does this software address my problem?
- How long does it take to get up and running with this system?
- How often do you update your products?
- What kind of training and support do you offer?
What are some common tools in a construction tech stack?
There are dozens of types of construction technology. That doesn’t mean you need one of everything. Most of your needs will be covered by a few big categories.
Subcontractors typically have a core tech stack that looks something like this.
Estimating and Bid Management
Estimating and bid management software streamlines takeoff and makes it easier for you to create accurate estimates, compare bids, and win more profitable projects.
Signs you need estimating and bid management software
- It takes days or longer to get a quote together.
- You haven’t documented your standard job costs.
- Your actual job costs regularly come in higher than originally estimated.
Recommended estimating and bid management software
- ProEst
- STACK
- Bluebeam Revu
- BuildingConnected (now a part of Autodesk)
Project Management
Project management software centralizes project communication, scheduling, resource planning, and document management, making collaboration between project and field teams a reality.
Signs you need project management software
- Projects rarely, if ever, stay on schedule.
- You spend a lot of time tracking down project documents.
- Your team is suffering from communication breakdowns.
Recommended project management software
- Procore
- PlanGrid (Autodesk Construction Cloud)
- Buildertrend (especially for residential subs)
Field Management
Field management software empowers field crews with mobile access to plans, real-time issue tracking, punch lists, daily reports, and safety management tools.
Signs you need field management software
- Labor costs keep going over budget.
- You’re concerned about worker productivity.
- You’re tired of staring at timekeeping spreadsheets.
Recommended field management software
Materials Management
Materials management software tracks materials, equipment, and tools; optimizes ordering; and minimizes waste. It helps ensure materials availability and keeps your costs in check.
Signs you need materials management software
- The cost of materials keeps destroying your profit margins.
- Figuring out what’s in the warehouse is a guessing game.
- You have piles of leftover materials collecting dust and gobbling up storage fees.
Recommended materials management software
- Kojo (formerly Agora Systems)
- Fohlio
- StructShare Technologies
Accounting
Back office teams use construction accounting software to manage job costing, invoicing, payroll, financial reporting, and compliance.
Signs you need (better) accounting software
- You’re using a generic billing software (like Quickbooks) that’s not purpose-built for construction companies.
- You have no visibility into profit margins and costs.
- Financial reports are a mix-match of spreadsheets.
Recommended accounting software
There’s a long list of top subcontractor accounting tools with a few that sit at the top.
If you’re evaluating construction accounting software, here’s a buyer’s guide we put together. It’s worth checking out.
A/R Management
Specialized billing processes call for specialized tools. And there are a lot of steps involved in subcontractor construction billing that accounting systems don’t cover. A/R management software automates payment applications, lien waivers, and compliance documents while tracking receivables to improve cash flow.
Signs you need A/R management software
- Your pay apps keep getting kicked back for changes.
- It’s taking more than 60ish days to collect payments.
- You’re tired of chasing lien waivers or compliance documents in order to get paid.
Recommended A/R management software
Siteline helps subcontractors take control of their A/R. It connects to your accounting system so you can streamline and visualize accounts receivables.
It’s changing the game for subcontractors—speeding up billing workflows by 6x, slashing pay app revisions in half, and getting them paid three weeks faster. You can get a demo here.
Consider these final tips when choosing construction software.
As you start demoing various software, you may find a clear winner based on specific capabilities, the sales experience, or its interface. On the other hand, you may find the software options very similar, making it difficult to know which is best.
Keep these considerations in mind to help choose the right software for your company.
- Look for affordability. Cost should definitely be a factor. Be sure to understand the total cost of the software, including subscription fees and any additional fees like onboarding, training, data storage, etc.
- Think about the implementation process. It shouldn’t take months to get up and running with a new system (unless you’re migrating to a new ERP; that process can be a beast). Ask vendors how long it takes for subcontractors like you to implement, onboard, and successfully use the software.
- Get clear on the ongoing support provided. Software comes with a learning curve. You will have questions as you go—whether it’s because you’re using a new feature, training new team members, or working with a unique use case. Make sure to choose providers that are dedicated to your success and offer free ongoing support.
- Make sure it will integrate with your other systems. Key systems need to communicate with each other so data can flow seamlessly back and forth. Some connection points to think about include your project management and field management tools, and your accounting and A/R management software.
We know that technology can feel daunting. But we’ve seen it make a big difference for trade contractors time and again. Check out some results other subs have seen by making smart tech decisions.
Stay tuned for more resources on how to use technology to help your subcontracting business thrive.
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