The investment made in software can work wonders in terms of helping deliver projects on time and on budget.

Unfortunately, a significant percent of systems purchased are never fully implemented or do not deliver the utility the user hoped for.  Here are the five most common mistakes made when selecting software:

1. Failing to Define Specific Needs:

It is extremely unlikely that a company will use more than 50 percent of any software product's capabilities. This is not a bad thing. Every construction business does things a little differently; therefore, it's important that the software's capabilities meet the organization's needs.

Before diving into the selection process, ask "What are our crucial needs?" If these key needs are not identified, it may be difficult to distinguish between vendors. Many vendors claim to do many things. The vendor's strengths must match the company's key needs.

The management staff should develop a comprehensive list of all the construction company software needs. Then, gradually narrow these needs down to no more than five. If the list contains more than five, companies run the risk of diluting the important needs and increase the odds that the software selection may not be the best fit.  Next, ensure that the five needs are clearly defined. For example, one of the five may be, "Better communications between the office and the field."  What does this mean?  A more specific definition might be:  "Receive task updates and purchase orders daily from the field."

2. Failing to Prioritize Needs:

It is unlikely that all of the identified needs will be equally important. List the needs in order from "Must Haves" to "Nice to Haves" (or from "Most Important" to "Least Important")

3. Evaluating Too Many Vendors:

Choose no more than three vendors at the start of your search. If more than three are chosen, it often becomes difficult to remember who does what. If none of the first three vendors will meet 80 percent of the key needs, dismiss these and begin investigating several more.

4. Straying from Core Needs during Evaluation:

When reviewing the vendor software, spend time wisely and don't get sidetracked. Begin with the firm's greatest need and have the vendor demonstrate how their system handles this need.  Take notes to remember how and to what degree the vendor meets your needs. Move on to the next need and evaluate in a similar manner. Remember, if the vendor has something "neat" with good "eye candy," does this help meet the firm's specific needs?  If not, do not include this in the evaluation.

5. Failing to Check References:

After making the best vendor selection, request a list of their existing customers, and talk to these references about their experience with the vendor. Hire this vendor if the responses are generally positive. If not, consider the second vendor choice.

Construction Business Owner, September 2008