Modernization & Technology Adoption in Construction

Construction companies are implementing technology as a means to maintain a competitive edge and solve challenges. And while construction is modernizing, 30% of construction organizations are still building the future on outdated systems.

Construction hasn’t fallen behind because it lacks technology; it’s fallen behind because that technology doesn’t work together. Up to 90% of IT budgets go to maintaining outdated systems.

Disconnected systems force teams to rekey information, reconcile spreadsheets, and make decisions without real visibility.

The Cost of Technology Debt

Technology debt is what happens when you delay modernization. Instead of upgrading systems strategically, you add tools reactively, patch over gaps, and rely on staff to fill in the gaps.

Forty-three percent of construction companies say their business processes would improve with better access to real-time and historical data. Yet many still reconcile reports, use disconnected systems for estimating, and struggle with billing. It’s a situation that can end up costing as much as $250 million annually.

With standardized data capture and a single source of truth, organizations can address issues, streamline operations, and enhance decision-making. Research suggests efficient data capture and standardization can result in a 13% savings on total construction project spending.

Outdated Systems Hold Back Growth

Manual time tracking, disconnected claims workflows, and multiple logins across platforms lead to delays, errors, and lost revenue. Worse, they make it harder to scale operations efficiently or respond to changing workforce dynamics.

Further, rework, delays, and missed deadlines cost the construction industry $31 billion in lost productivity annually. Most operational teams are stuck reacting to these challenges, rather than operating proactively, with studies showing that 70% of time is spent on non-value-added tasks.

In construction, technology debt and outdated systems are causing inefficiency, limited functionality, and missed business opportunities. According to Gartner, software switches are happening because their current systems don’t save them time (49%), lack specialized construction functionality (26%), and often lead to underbidding and loss of job tracking (9%).

Successful operational leaders identify issues early, coordinate resources seamlessly, and make the most proactive decisions based on strong data.

Here’s what operational performance efficiency looks like:

• Automated daily field reporting tied directly to job cost and schedule
• Centralized communication between PMs, supers, and finance
• Consistent workflows that eliminate redundancy and reduce rework

Technology Optimization

When it comes to optimizing and modernizing your technology, look for:

• Strategy alignment. Align technology investments with business outcomes, including margin protection, schedule reliability, cash flow, and growth.
• Tech debt reduction. Resolve short-term fixes and look for redundant tools that perform similar functions. Combining overlapping technology can streamline processes and reduce costs.
• Consolidation and integration. This can simplify technology management and minimize the complexity of your tech stack. Look for platforms that share data to break down siloes.
• Change management and ROI tracking. Define rollout phases, champions, training plans, and KPI dashboards. Measure adoption and outcomes like invoice cycle time, change order accuracy, and job margin.

Don’t forget to align leaders around outcomes.
It’s not about new software. It’s about visibility, control, and smarter execution across the business.

It’s Time for Proactive Modernization

Once you have the right technology in place, it’s time to be proactive. Here’s what future-ready firms are doing:

Operations

• Automating field reporting tied to job cost and schedule
• Using real-time dashboards to spot red flags early
• Streamlining communication between PMs, supers, and finance

Finance

• Standardizing reporting and compliance workflows
• Connecting time, materials, billing, and forecasting
• Getting out of spreadsheets and into insight-driven decisions

Fifty-four percent of financial leaders say data silos are a significant barrier to innovation.

Technology

• Replacing legacy systems with secure, scalable platforms
• Implementing MFA, encryption, and access control across apps
• Building an integrated data environment that supports growth

Real-World Example: Fragmented Systems Hide Process Inefficiencies

Here’s how hidden inefficiencies often surface when systems and teams aren’t aligned. One client needed help with pain points in their accounting processes — specifically invoice delays and vendor confusion. But the real issue wasn’t just in AP:

• Invoices were held up by missing purchase orders and inconsistent shipping info
• Over 50 purchasing card users and a decentralized approach created chaos in approvals
• No central oversight meant missed pricing leverage and limited vendor accountability

The Solution? 
By centralizing purchasing, standardizing processes, and activating an ERP module they already owned, the client:

• Automated vendor onboarding
• Streamlined invoice approvals
• Improved visibility and vendor management
• Reduced manual work across departments

Real-World Example: Real-Time Visibility Without Added Cost

One construction company came to us because they needed a mobile-friendly time entry solution for field staff but didn’t want to pay for additional Salesforce FSL licenses just for temporary workers.

We built a custom mobile time entry solution that:

• Enabled workers to log time directly from the field
• Integrated seamlessly with payroll and job costing systems
• Eliminated the need for FSL licenses for temp labor

The Result?
Real-time visibility into labor costs, faster decision-making, and significant cost savings on platform licensing.

Making Your Tech Stack an Advantage

Technology in construction is often underutilized or overly complex.

Consider this:

• 39% of clients have multiple tools performing the same function
• 35% report poor adoption of technology investments
• 31% say tech spend exceeds ROI

A modern tech stack isn’t just about automation. It’s about enabling the people closest to the work to act on the right information at the right time.

Some of the most impactful gains come from focused, strategic updates, such as:

• A custom mobile time entry interface that improves labor reporting accuracy
• Automation that halves claims processing time and minimizes errors
• Payroll integrations that close labor data gaps and enhance financial reporting

The reality is, modernizing your operations isn’t just about technology. It’s about reshaping how your business works to unlock agility, control costs, and scale efficiently. Construction firms that align operations, finance, and technology will outpace competitors, protect margins, and build future‑ready resilience.

At Eide Bailly, we help construction firms transform disconnected efforts into integrated, scalable performance. Let’s build smarter together.

Our Work in Action

• Alliance Partition Systems Turns to Eide Bailly for Business and Accounting Expertise in the Construction Industry
• How ESI Modernized Operations with Microsoft Power Platform
• How Data Transparency Drives Innovation at Building Zone Industries