Odoo for Construction: Core Modules, Implementation Tips, and Case Study

Running a construction business means juggling multiple tasks like managing contractors, tracking materials, and staying on top of deadlines and budgets. Odoo for construction makes this easier by bringing all these tasks into one system. With tools for project management, inventory tracking, and cost control, Odoo helps you avoid delays, reduce errors, and keep every project on track.

In this post, we’ll explore how Odoo can help your construction company optimise processes, boost efficiency, and deliver exceptional results.

Odoo for Construction: Solving Key Challenges

The construction industry is inherently complex, with projects that are often large, time-sensitive, and involve numerous stakeholders. Odoo helps tackle these challenges by providing tools to manage multiple projects, ensuring tasks stay on schedule, and making it a practical solution for the construction industry.

Are you new to Odoo? Read more: Odoo For Beginners: Features, Pricing, Core Modules, & Implementation Practices

6 Core Odoo Modules for Construction Companies

A study from McKinsey shows that, despite accounting for 13% of global GDP, the construction industry has faced low productivity growth and profitability, with an average EBIT (Earnings Before Interest and Taxes) margin of just 5%.

To address this, construction companies need specialised tools for managing critical tasks like project scheduling, inventory tracking, and workforce management. With powerful and customisable modules, Odoo can simplify these processes, enabling construction companies to work smarter, cut costs, and improve profits.

1. Project management

In construction, projects often involve multiple phases, tight deadlines, and coordination between contractors, engineers, and on-site teams. Odoo’s project management module provides a centralised system to manage these workflows.

• Kanban view for workflow management: Visualise and organise construction tasks, such as material delivery, inspections, and subcontractor assignments. 
• Milestone tracking: Keep track of key construction milestones (e.g., foundation completion, final inspection) to ensure projects stay on schedule.
• Resource allocation: Assign resources (equipment, materials, and personnel) to specific tasks, optimising resource usage across multiple sites.
• Customisable construction reports: Build dashboards to monitor expenses, project timelines, and material usage.

2. Inventory management

Construction projects require precise timing for materials, tools, and equipment to prevent work stoppages. With Odoo’s inventory management module, your company can monitor stock levels, track deliveries, and avoid delays caused by material shortages.

• Real-time inventory management: Track materials, tools, and equipment across multiple warehouses and construction sites. Monitor inventory performance with key metrics like usage rates and turnover.
• Flawless replenishments: Ensure materials like cement, steel, and lumber are always available using smart replenishment strategies (e.g., min-max rules or Make-to-Order).

3. Procurement management 

Your construction company likely faces a high volume of procurement tasks, from sourcing raw materials to negotiating supplier contracts and keeping track of procurement costs. Odoo’s procurement module simplifies these tasks, providing clear workflows to efficiently manage orders, contracts, and budgets.

• Purchase tenders: Request bids from multiple suppliers for large construction material purchases, such as concrete or heavy machinery, to get the best price and delivery terms.
• Blanket order agreements: Set up long-term agreements with suppliers for regular delivery of materials at a fixed price over a set period, ensuring price stability and consistent supply.
• Automate ordering: Set procurement rules to automatically reorder materials when stock levels run low or when upcoming construction projects require additional supplies.

4. Accounting and invoicing

Financial control is critical for your company, where costs can quickly spiral out of control. Odoo’s accounting and invoicing module provides you with real-time insights into project budgets, expenses, and profitability.

• Project-based budgeting: Monitor labour, materials, and overhead costs for each construction project to avoid overruns.
• Progress-based invoicing: Automatically create invoices based on project milestones or completion percentages (e.g., 30% after foundation work).
• Simplify payments: Group multiple vendor bills (e.g., materials, subcontractor fees) and process them together for efficiency. Allow clients to pay invoices online with major payment gateways (e.g., PayPal, Stripe).
• Streamline tax compliance: Automatically calculate taxes for materials, subcontractors, and services. Record income and expenses based on payments received and made, ideal for construction firms with fluctuating cash flows.
• Multi-company support: Manage multiple subsidiaries or sites within the same system, with consolidated reports for seamless oversight.

5. HR and workforce management

How can you effectively manage diverse teams and dynamic job sites? Odoo’s HR module offers solutions for workforce scheduling, attendance tracking, and payroll management tailored for construction teams.

• Manage employee profiles and skills: Store employee resumes with details on certifications like construction safety training and equipment operation. Filter profiles to assign workers based on skills and experience.
• Monitor time off and attendance: Allow workers to request leave directly from their profile, simplifying approval workflows for supervisors. Set up custom schedules based on job site needs and worker availability.
• Equipment management: Monitor tools, machinery, and hardware assigned to employees. Track usage, costs, and maintenance to prevent downtime.

6. Document management

If your construction business deals with blueprints, permits, contracts, and progress photos, Odoo’s document management module can help centralise and organise these critical files.

• Blueprint and plan storage: Centralise storage for architectural drawings, plans, and engineering documents, ensuring easy access for site managers and engineers.
• Version control: Track revisions to plans or contracts, ensuring teams always reference the latest versions.
• Collaboration tools: Share documents securely with subcontractors, clients, or inspectors, streamlining communication.
• Compliance and auditing: Organise permits, safety reports, and inspection records for compliance with regulatory standards.

5 Practical Odoo Implementation Tips for Construction Companies

Implementing Odoo can greatly enhance your operational efficiency, but success depends on a thoughtful and strategic approach. These five practical tips help ensure a smooth and effective implementation.

• Define clear objectives: Identify the pain points in your current processes (e.g., delays in procurement, poor communication, or inefficient resource allocation). Then, decide what you want to achieve with Odoo, whether it’s streamlining project management, reducing inventory shortages, or improving financial tracking. 
• Customise Odoo to fit your needs: Collaborate with an experienced Odoo partner to adapt the platform to your specific requirements. For example, creating custom workflows for complex project management or integrating with specialised tools for construction design. 
• Train your team thoroughly: Organise comprehensive training sessions to familiarise employees with Odoo’s interface, features, and how it will impact their specific roles. Address any concerns and demonstrate how Odoo simplifies tasks such as tracking inventory, managing tasks, or processing payroll. 
• Integrate Odoo with existing tools: If your company uses existing software, such as accounting tools or CAD systems, ensure Odoo integrates smoothly with them. Leveraging Odoo’s integration capabilities prevents data silos and streamlines information flow between departments. 
• Monitor performance and make adjustments: Continuously monitor how Odoo is being used, gather feedback from team members, and measure its impact against your initial objectives. Identify areas for improvement, such as optimising workflows or adding new features.

A Case Study for Australian Construction: How Presien Transformed Operations with Odoo

Founded in 2020, Presien is a pioneering industrial AI company committed to transforming workplace safety across heavy industries such as construction, logistics, mining, and manufacturing. Its flagship product, Blindsight, is an award-winning AI system delivering real-time alerts to prevent accidents and enhance safety.

The challenge: Starting from ground zero

When Presien transitioned to being a stand-alone entity, Laing O’Rourke, it needed to create a business infrastructure from the ground up. Traditional ERP systems were too expensive and complex for the growing startup. Additionally, the company needed an integrated system that could handle various business functions - CRM, inventory, manufacturing, and more.

After a recommendation from another startup, Presien chose Odoo for its affordability, modularity, and ability to streamline operations through a single, integrated system.

The solution: Odoo’s seamless implementation

Partnering with Havi Technology, an official Odoo Partner in Australia, Presien successfully implemented Odoo in just two weeks.

By integrating Odoo into its operations, Presien established a unified system to manage its purchasing, manufacturing, inventory, CRM, sales, and invoicing processes. This allowed the team to focus on their core mission - enhancing safety standards - without getting bogged down by administrative inefficiencies.

The results: Enhanced efficiency across departments

Odoo’s modular design allowed Presien to solve specific challenges in its day-to-day operations:

• Streamlined purchasing and inventory: Presien uses Odoo’s Purchase, Inventory, and Invoicing apps to automate tasks, reduce manual data entry, and streamline supplier communication. Real-time stock tracking ensures timely delivery of components critical for developing safety devices.
• Improved manufacturing processes: As a technology manufacturing company, Presien’s operations require high levels of efficiency. With Odoo, manufacturing orders are systemised in real-time, eliminating the need for workarounds and ensuring smooth communication between teams. 
• Integrated and accurate data management: With all Odoo apps operating on a single database, Presien minimised errors caused by manual data entry and ensured accurate, timely information across all departments.
• Scalable and customisable platform: As an open-source solution, Odoo offered Presien the flexibility to customise its database and adapt the system to its unique requirements. This ensured that Presien could scale its ERP solution alongside its growth.

Presien’s story highlights how startups in the construction and industrial sectors can achieve operational excellence with Odoo’s modular ERP. By integrating business processes, Odoo empowered Presien to focus on revolutionising health and safety standards - proving that the right ERP is a critical driver of success.

Tailor Odoo for Construction with Havi Technology

With Odoo, you can transform how you manage construction projects. However, it requires expertise in customising Odoo to fit your specific workflows. To fully leverage Odoo’s potential, you should partner with Odoo experts. This ensures smoother operations, better resource management, and improved project outcomes.

Reference:

• McKinsey & Company (2020). The next normal in construction.