A Guide to Construction Software Pricing Models
Not sure how much you should pay for software for your construction firm despite having laboriously shopped around? Well, let’s get over the bad news first: there is no simple gauging solution here. Further, there are situations in which even free or open-source construction utilities entail hidden costs that can throw your budget into disarray.
With this in mind, we have compiled this comprehensive guide to assist you in comparing the prices of leading building options. This will also help you understand how construction tools are licensed; assisting you in locating the right product for your budget.
While talking about construction software, however, there are things other than cost that need to be kept on the radar. The program, for one, should be user-friendly and accessible (particularly for people with disabilities; so, it is popularly enabling). Secondly, it should offer plan price ranges found affordable by all types of users.
Now, pricing depends on a lot of factors, including the size of a business and the number of features entailed.
Read on as we extend our exploration of this issue – your actionable insights await.
Typical Features of Construction Management Software
Numerous construction businesses employ construction management systems equipped with collaborative workflow and data access capabilities, thereby integrating numerous teams and office locations into a shared work environment. These digital frameworks provide scheduling and real-time completion data, including the monitoring of productions status, start and end dates, budgets, and expenditures. In addition, they impart dedicated data organizing and presentation functionalities, such as the common ‘construction templates’ facility.
Document management, project tracking, and scheduling are all considered fundamental domain functions; so, any application that’s found lacking on these fronts is justifiably deemed ‘deficient’.
Analyzing Standard Construction Software Pricing
The cost of construction software is determined by the type of product features required and the volume of building projects overseen. The greater the number of projects executed on the platform, the greater the software’s cost savings, efficiency, and productivity enhancements.
Narrowly, the cost of construction management software depends heavily on the responses to the following questions. Used as an assessment rubric, these will assist you in comprehending your organization’s needs and, thereby, budgeting for the right subscription accordingly.
- What is the size of your business? Do you own a big company or a small-scale enterprise in the lift-off phase?
- Are you a solo-contractor or a team of contractors?
- What kind of features do you need to incorporate in your software? What does your software aim to achieve?
- Is a subscription-based model more suitable for you or a long-term (annual/semi-) plan?
- Do you consider the ‘demo’ experience pivotal to your eventual contracting decision?
- Does a free option – with its limited functionality – work better against your budget?
It is only after noting and resolving these considerations that you can decide which subscription options are most suitable for your business. For instance, CoConstruct software offers highly versatile pricing packages ranging from $99 to $899 per month depending on their differing features assortment.
Contending with Different Price Tiers
The majority of construction management systems are priced on a subscription basis and do not require the purchase of a license. Instead, consumers pay the program vendor either monthly or annually.
The monthly cost of construction management software ranges from $44 and $2850 per contractor. Businesses can expect to pay anywhere between $299 and $9900 per month for additional contractors and advanced functionality.
Further, based on the number of contractors, we can categorize the various pricing plans as basic, premium, and advanced.
The basic plan includes only a few management functions, but the premium versions have sophisticated features in addition to the basic ones. Additionally, the advanced plan is the most expensive of the three due to its superior support for large teams and organizations.
There are many famous construction software applications like McCormick Electrical Estimating, BuilderTrend, Acumatica, and CoConstruct available within the online marketplace. The latter two do not share their pricing information, though. This typically occurs when a vendor offers configurable packaging options through which subscribers can attain custom quotes.
Upfront & Recurring Costs: The Low-Down
When comparing prices for construction software, there are three basic pricing models: perpetual license, subscription license, and free/open source.
You may already have a fundamental knowledge of these alternatives, but let’s examine the complete upfront, recurring, and hidden costs of each:
Here, you pay a one-time license cost to own and use the construction program indefinitely. This option is usually reserved for on-premise deployments in which the system is hosted and managed on-site.
Up-Front Costs: A one-time licensing charge, hardware costs, etc. (e.g., servers).
Recurring Costs: Monthly, yearly, and/or ad hoc upkeep (e.g., updates, patches, and upgrades).
Hidden Costs: These include customization costs, integration charges, etc.
For a specified period of time, you pay a monthly charge to utilize the construction program. It is commonly used for cloud-based installations, in which the system is hosted off-site and can be accessed on devices that are compatible with it through the use of the internet.
The upfront cost includes installation and software setup charges. Furthermore, it entails a monthly subscription charge per provider/user, ranging from $44 to more than $9900. Additionally, the service comes with exceptional customer support, for example, extra phone support hours.
This implies that the software is free to use, alter, and distribute, and that there are no associated costs. If your IT budget does not allow for a costly construction software subscription, you should consider using free tools to manage your project workload without breaking the bank. There are no recurring costs as the software is free with access to limited features. Hidden costs, however (being not so hidden), remain the same.
Training: Depending on the extent of staff training needed for onboarding the new system, the expense can range from zero to several thousand dollars. Currently, vendors offer a multitude of free online training tools, such as webinars and how-to videos, that can help in reducing these additional expenses. To prevent costly downtime, you may find it advantageous to hire a professional in implementation to train your employees as quickly as feasible. Usually, this will cost extra.
Data Migration: Transport the client data from your old software to the new system by exporting it. This is a fee that frequently surprises consumers.
Upgrades/Maintenance: It is essential to determine whether maintenance and support services are included in your software subscription or licensing payments. In the event that your team is unable to provide maintenance for the tool, which could have a direct impact on the ROI that your software was designed to generate, it is essential to be aware of the support provided by the vendor.
Hardware costs: Does implementing the software necessitate any new purchases or upgrades to your existing infrastructure? The need to overhaul/improve individual employee gear, like PCs or mobile devices, may come as a regular demand.
The above-mentioned specifications will help you get familiar with different pricing aspects and characteristics one needs to keep in mind while developing or investing in construction management software.