Enterprise Resource Planning for Construction Business Management

Enterprise resource planning (ERP) was originated in the manufacturing industry. It provides a general working environment for an enterprise to integrate its major business management functions with one single common database so that information can be shared and efficient communications can be achieved between management functions. This paper first briefs the ERP technology, its origin, and its current development in general. Based on the needs of running a construction enterprise, ERP shows its potential for the construction industry. However, the unique nature of the industry prevents a direct implementation of existing ERP systems, which are primarily developed for the manufacturing industry. This paper underlines the importance of the establishment of the basic theory for developing construction enterprise resource planning systems (CERP). A CERP must address the nature of the general industry practice. Fundamental features are identified and discussed in the paper. A three-tiered client/server architecture is proposed, with discussions on the functions and major components of each tier. Needed research issues are discussed, including CERP architectures, project management functions, advanced planning techniques, standardization of management functions, and modeling human intelligence. Construction management examples are incorporated into the discussions.