Starting your own business will introduce many questions along the way. In the construction industry, you may ask - “What beginner construction tools do I need?”. Of course, it is important to make sure to have tools like a hand drill, a nail gun, and a concrete mixer handy. However, having the proper digital construction tools can make or break your company’s success.

This guide will detail the essential tools for small contractors that are crucial for your company’s success. Set your company up for success from the start with the right construction software for small builders. By doing so, you can have a more efficient team, reduce legal risks, and win more jobs by setting yourself apart from your competitors.

The Importance of Using Online Tools

Starting a construction company involves various tasks, from planning and securing financing to managing projects and client relations. Using online tools can streamline these tasks. Online tools also allow access from anywhere with a device and an internet connection. The essential digital tools for newer construction companies are:

• Centralized communication tool
• File and document manager
• Accounting management platform
• Project calendar
• Digital marketing and sales tools
• Task manager
• Online estimating tool

Using online tools will increase the ways you can communicate, help you reach a larger audience, and automate tasks on the go. Cloud-based software is crucial for managing multiple projects and scaling operations. When introducing new digital tools to your team, make sure that your team is prepared to make the change. 

Easy Access with Cloud-Based Software

Choose an online platform rather than a desktop application. You can access your company data from any device with an internet connection. This will increase flexibility, decrease the risk of losing your information, and enable more team collaboration.

Many construction project management software options aim to encompass every crucial tool for the success of construction projects. However, a lot of these options can be expensive, especially for small construction businesses. This is why it is important to establish priorities and research different options. Make comparisons considering a product's functionality, user reviews, customer support, and value for money.

1. File and Document Manager

From proposals, to project tracking reports, to warranties, there are countless documents that must be managed throughout a construction project. When documents are unorganized, important project information gets lost.

It is crucial to get organized from the start. Find a cloud-based system that can store your documents and keep them organized. Storing documents on a single device is a common mistake for smaller business owners. By finding a cloud-based file management software tool, company employees can access important documents from any device.

For more tips on managing files, check out this blog post: The Ultimate Guide to Construction Document Management.

Your Options

• ConstructionOnline 
  • Unlimited storage
  • Stored alongside other project management tools
  • Cloud-based
  • Collaborative
  • Free to use
• Google Drive 
  • 15 GB storage
  • User-specific, with sharing options
  • Cloud-based
  • Automatically saves changes
  • Free to use
• Microsoft Word
  • Basic templates available
  • User-specific, with sharing options
  • Can be cloud-based or limited to one device
  • 5 GB of storage
  • Free to use

2. Centralized Communication Tool

Effective communication is crucial in construction, and online tools can significantly improve it. Platforms that help team members, subcontractors, and clients communicate and collaborate easily reduce confusion and keep everyone informed. This is vital in construction, where delays and errors can lead to substantial costs. Project management software often offers better communication tools, facilitating seamless collaboration and ensuring that everyone stays informed and aligned.

Project management software with mobile app access is especially useful. It allows users to communicate effectively from anywhere, not just their office computer. This ensures important messages can be accessed at any time, enhancing team productivity and strengthening client relationships through transparency and professionalism. For example, ConstructionOnline has various tools that make company communication easier, allowing contractors to address issues in real-time.

Your Options 

• Email
  • Common choice
  • Easily accessible
  • Not well organized
  • Can lead to important communication getting lost
• Slack
  • Internal team communication tool
  • Options to create different groups (channels)
  • Not used for client/stakeholder communication
  • Free with paid options available
• ConstructionOnline
  • Internal instant messenger tool (Envoy Chat) with grouping options
  • External messaging tools for communication with clients/stakeholders
  • Segmented features: Messages, Envoy Chat, Submittals, Transmittals, RFIs, Announcements, Inbound Email storage
  • Free with paid options available

3. Accounting Management

Using accounting software is essential for construction companies to maintain accurate financial records and manage finances effectively. Construction projects involve numerous transactions like purchases, payments, and payroll, which can be overwhelming to track manually. Manual bookkeeping is time-consuming and prone to errors. Accounting software simplifies this by automating the recording and organization of financial data, providing real-time insights into the company's financial health.

Additionally, using accounting software enhances trust with stakeholders such as clients, investors, and bonding companies. Clear and accurate financial records demonstrate sound financial management practices, bolstering the company's reputation and credibility. Lenders and investors prefer partnering with financially responsible firms, while clients trust contractors who manage project finances transparently and effectively. By leveraging accounting software, construction professionals can streamline financial operations, ensure regulatory compliance, and foster stronger relationships with stakeholders.

Your Options

• Quickbooks Online
  • Industry-standard
  • Affordable and scalable
  • Often integrates with PM tools like ConstructionOnline
  • Starts at just $9 per month
• Sage 
  • Rising in popularity
  • Accurately track income, expenses, and taxes
  • Reporting options available
  • Starts at $58.92 per month
• Foundation
  • Specific to the construction industry
  • Tracks invoices, payroll, and expenses
  • Reporting options available
  • Not widely used

4. Project Calendar

Keeping a project calendar is crucial in construction for staying organized and on schedule. It helps teams plan tasks like construction site preparation, inspections, and material deliveries. This prevents delays and ensures smooth progress throughout the project. A project calendar improves communication among team members and stakeholders by clearly outlining deadlines and milestones, reducing misunderstandings, and helping coordinate efforts effectively.

Additionally, a project calendar serves as a visual roadmap for tracking progress and managing resources. It allows project managers to allocate time and manpower efficiently, optimizing workflow and preventing overbooking. This clarity enhances project management by providing a clear timeline for completing tasks and achieving project goals on time and within budget.

Your Options

• ConstructionOnline 
  • Easy to use
  • Keep project management tools in one place
  • Assign team members to tasks and deadlines
  • Set alerts for important events and milestones
  • Integrates with Google and Outlook calendars
  • Free access
• Google Calendar
  • Schedule tasks and deadlines 
  • Set reminders
  • Document important milestones
  • Share the calendar with your team to stay on the same page
  • Free access
• Outlook Calendar
  • Organize tasks and deadlines
  • Set alerts for important events
  • Share the calendar with your team to stay on the same page
  • Free access

5. Digital Sales and Marketing Tools

Digital sales and marketing tools are important for construction companies because they help reach more customers online. By using social media, websites, and email marketing, companies can showcase their projects and services to a wider audience. This makes it easier for potential clients to find and choose the company for their construction needs.

These tools also improve communication and organization within the company. Digital sales platforms can track leads and manage customer relationships. This information helps construction companies make better decisions, stay competitive, and grow their business effectively.

Your Options

• Microsoft Excel
  • Manage contact lists
  • Manual setup
  • Free to start
  • Cloud-based
• ConstructionOnline
  • Manage customer relationships
  • Easily generate proposals and send them to clients
  • Unlimited company directory storage
  • Manage projects from opportunity to finish in one place 
• Mailchimp
  • Email marketing tools
  • Access to templates
  • Integrates with other digital marketing tools
  • Free trial with paid options after one month

6. Task Manager

Contractors need a task management system to organize their work and track project progress. It also helps to efficiently allocate resources and coordinate with team members, reducing the risk of delays and miscommunication. Construction management software solutions automate routine tasks, which leads to more accurate project tracking. Therefore, contractors can make better-informed decisions, improve overall performance, and increase client satisfaction.

With ConstructionOnline, contractors can manage schedules, track budgets, manage plans, and communicate with their teams all in one place. The comprehensive platform offers a range of collaboration tools designed to improve efficiency and communication. ConstructionOnline is easily scalable. Free, entry-level plans help you easily start increasing efficiency with project planning.

Your Options

• ConstructionOnline
  • Customizable and modern To-Do management designed for construction
  • Assign tasks to team members
  • Unlimited users
  • Free access with paid upgrades as you grow
• Asana
  • Organized project > task structure
  • Customizable view options
  • Assign team members to tasks
  • Paid upgrades available
• Monday
  • Typically designed for large teams
  • Timeline and calendar views available
  • Integrations available
  • Free access with 2 users

7. Online Estimating Tool

As a decision-maker in construction, prioritizing financial management software is essential for project success and profitability. Accurate estimates, generated by construction estimating software, are key to securing projects and avoiding financial pitfalls like underbidding or overbidding. This software automates complex calculations for labor, materials, and overhead costs, ensuring bids are competitive and projects are profitable.

Construction estimating software not only enhances accuracy but also saves time compared to manual methods. Automating tasks and providing customizable templates allows contractors to generate detailed estimates swiftly and with minimal errors. This efficiency improves project management by enabling better resource allocation and cost control, which is essential for keeping projects on budget and maximizing profitability.

Moreover, construction estimating software improves project management and financial control. With detailed and accurate estimates, small construction companies can better plan and allocate resources. This ensures that projects stay within budget. The software provides insights into cost breakdowns and potential areas for savings. 

Additional Financial Tools

Effective construction financial management requires more than just accurate estimates. It involves managing various aspects like client selections, change orders, invoices, and vendor transactions. These financial needs vary depending on the type of construction project. It's crucial to consider key features that align with your company's needs.

Choosing software that integrates these financial tools streamlines operations by consolidating all financial data in one place. This reduces errors and enhances efficiency while fostering better relationships with stakeholders. Monitoring costs closely from the outset helps construction firms mitigate financial risks, ensuring project success and building client confidence for sustainable growth and repeat business.

Your Options

• OnCost Estimating
  • Starts at just $119 a month with upgrades as you grow
  • Easy to use and includes additional financial tools alongside estimates
  • The #1-rated construction estimating software for small businesses 
  • Designed for businesses of all sizes – scalable
  • Cloud-Based
• Microsoft Excel
  • Fully customizable
  • Manual setup
  • Prone to human error
  • Free to start
  • Cloud-based
• Planswift
  • $1,749 per year with 2 hours of training
  • Create detailed cost estimates from blueprints
  • Widely used in the industry
  • Specific to Takeoffs
  • Restricted to one device

Download our free estimate template below to get started with accurate and detailed estimates!

Key Takeaways >

> These 7 essential digital tools for starting construction companies streamline operations and enhance efficiency. They are crucial for managing tasks from planning to project completion with real-time updates and centralized data.

> Cloud-based platforms facilitate seamless interaction among team members, subcontractors, and clients, ensuring alignment from the job site to the office.

> Digital marketing platforms expand outreach and build trust through professional online presence, which is essential for securing new projects.

> Accounting software streamlines financial record-keeping, enhances transparency, and builds trust with stakeholders for long-term growth.

> Project management software is essential for scheduling, task assignment, and budget tracking, improving efficiency and communication.

> Construction Estimating Software like OnCost Estimating is crucial for creating accurate estimates, saving time, and optimizing financial control.

> Finding the right construction software for small businesses will ensure success long-term.