Construction companies operate with many moving parts. So the goal of installing a solution like Business Central is to make business operations simpler, more efficient and better aligned.
Below we outline some of the specific benefits of Business Central for construction companies - and how a Microsoft ERP solution can deliver more effective operations – typically at a lower total cost of ownership than bespoke construction software, particularly when factoring in upgrades, integrations and long-term support.
How Does Business Central Enhance Construction Operations?
Winning business
For any construction company, a strong and predictable pipeline of projects is fundamental to sustainable growth. Microsoft Dynamics 365 Business Central enables the structured tracking of crucial bidding parameters such as project value, contract type, sector, location, margin expectations, risk profile and resource requirements.
By maintaining detailed records of completed projects – including profitability, overruns, change orders and client performance – Business Central supports more informed bid/no-bid decisions. Construction firms can analyse which project types consistently deliver higher returns on investment and prioritise opportunities aligned to their profitability model and strategic focus, whether that is residential developments, commercial builds, infrastructure or specialist subcontracting.
Historical project data can also be leveraged to strengthen future proposals. Estimating teams can reference actual cost data, subcontractor performance and timeline accuracy to build more realistic, competitive tenders. This reduces the risk of under-pricing work and protects margins from the outset.
By providing the operational and financial data required to convert opportunities into successful projects, Business Central facilitates cost-effective customer acquisition. It supports the management of bid preparation, resource forecasting, tender deadlines and approval workflows – ensuring that each submission is structured, compliant and commercially sound.
Project Planning
From tendering through to practical completion and handover, construction requires rigorous project planning and cross-functional coordination. Business Central can function as a centralised project management platform, linking sales, estimating, finance, procurement, resourcing, plant hire, deliveries and subcontractor management within one system.
Because all departments operate from a single source of truth, changes to scope, variations, timelines or budgets can be reflected automatically across the organisation. For example, if material costs increase or delivery dates shift, these updates flow through to project costing, cashflow forecasts and procurement schedules without manual rekeying.
This level of integration reduces duplication, minimises errors and ensures that everyone is working from the same live dataset. Site managers, finance teams and directors gain visibility into project progress, committed costs and resource availability in real time. The result is improved forecasting, earlier identification of risks and more proactive decision-making.
Finance Control
Cashflow underpins the construction industry. It is a high-value sector, yet margins can be tight and exposure to delayed payments, retention and fluctuating material costs can quickly impact profitability.
Business Central keeps track of the financial aspects of projects in detail, including budget versus actual performance, committed costs, cost to complete, revenue recognition and project-level P&L reporting. These reports can automatically adjust as purchase orders are raised, labour hours are logged or variations are approved, providing a constantly updated financial position.
For finance leaders, this means stronger control over working capital, clearer forecasting of cash requirements and improved management of staged invoicing and applications for payment. Automated revenue recognition aligned to project milestones supports more accurate reporting and audit readiness.
Business Central can also address some of the unique financial requirements of the construction industry. This includes managing CIS obligations, tracking retention amounts, handling reverse charge VAT where applicable and ensuring that reclaimable costs are properly recorded. The system’s flexibility enables construction firms to maintain compliance while retaining clear visibility over margin at both project and company level.
Delivering the tools for the job
From heavy machinery and plant equipment to PPE and consumables, construction projects depend on effective resource and asset management. Using Business Central for construction operations makes it possible to track inventory and equipment availability in real time, across multiple sites and depots.
By linking procurement, warehouse management and project allocation, businesses can reduce stock shortages that cause delays, as well as over-ordering that ties up cash unnecessarily. Equipment can be assigned to specific projects, with usage and maintenance schedules recorded to ensure compliance and minimise downtime.
When integrated with Microsoft collaboration tools such as Teams, SharePoint Online and OneNote, site teams and head office staff can share documentation, drawings, health and safety updates and change requests instantly. Updates made on site can be tracked back to Business Central, creating a clear audit trail and improving accountability.
Assigning the right skills to the job
Alongside physical resources, construction firms must manage a complex workforce comprising employees, subcontractors and agency labour. Ensuring that the right people with the right qualifications are on the right site is both an operational and compliance requirement.
Business Central can support this by maintaining records of qualifications, certifications and training – including CSCS cards and other role-specific accreditations. When allocating labour to projects, managers can quickly verify that individuals meet site requirements and regulatory standards.
This data-driven approach enhances workforce planning, reduces compliance risk and can contribute to site security by ensuring that only appropriately qualified personnel are assigned to specific tasks or locations. It also supports better forecasting of labour demand and subcontractor engagement, helping to avoid last-minute resourcing gaps.
Advanced customer service
With Business Central, construction firms gain a stronger platform for managing client relationships and stakeholder communication. Customer records, contracts, project milestones and correspondence are centralised, enabling a joined-up view of each client and project.
The system supports programme management by tracking deliverables, variations and agreed changes. When timelines or budgets shift, updates can be communicated promptly and accurately to clients and internal stakeholders. This transparency strengthens trust and reduces the likelihood of disputes.
Business Central also enables construction companies to identify and address operational challenges early. By analysing project data across the portfolio, management can spot recurring issues – such as supplier delays or margin erosion on certain contract types – and take corrective action. Information is shared across relevant teams, encouraging collaboration and continuous improvement rather than reactive firefighting.
Benefits of Business Central for construction: An end-to-end solution
Business Central for construction offers end-to-end process management and integration for construction firms, connecting pre-contract activity through to delivery, financial control and aftercare. By harnessing real-time information, organisations can drive greater operational efficiency, improve margin protection and make evidence-based strategic decisions.
For growing construction businesses, this represents a scalable alternative to fragmented legacy systems or highly customised niche software. With a unified ERP foundation, firms can standardise processes, strengthen governance and build a resilient platform for long-term growth.
As a leading Business Central construction partner, Akita works with organisations across the UK and internationally to help maximise productivity in their operations. To explore the potential of Business Central for construction, please get in touch:
