Premier Construction Software: Meet Compliance Requirements and More

Navigating the Hazards of Construction Compliance and Effective Strategies for Overcoming Them

In today's construction industry, navigating compliance regulations is essential for success and profitability. With numerous industry-specific requirements to consider, construction firms must carefully plan and ensure that all subcontractors and vendors adhere to these rules. Failure to obtain and retain compliance documents can bring progress on a job site to a halt, resulting in fines, penalties, and potential loss of future business. However, by utilizing Acumatica Construction Edition, the premier construction software, contractors can streamline their operations and avoid costly non-compliance mistakes. This comprehensive solution provides templates, automation workflows, and customizable forms to ensure that no compliance requirement is overlooked, ultimately saving organizations money and preventing potential fines and shutdowns. In this blog, we explore the industry's standard quality compliance requirements and how Acumatica Construction Edition effectively addresses them. Discover strategies for implementing compliance-friendly workflows and systems, as well as the necessary steps for executing top-notch software implementations.

Accounting and Financial Documentation Compliance Requirements

Compliance with construction accounting and financial reporting is not a one-size-fits-all approach. Depending on the province, there are specific standards that contractors must adhere to. Additionally, tax rules and regulations can vary based on location and the type of contract being executed.

To ensure smooth operations, it is crucial for construction accounting software to support AIA reporting and billing standards, as well as common construction accounting standards like GAAP and IFRS. Acumatica Construction Edition is designed to meet these requirements, offering native support for AIA billing and reporting. Furthermore, the software's flexible tax reporting allows for easy configuration of value-added taxes, use taxes, and retrieval of details specific to different tax zones. Acumatica also ensures compliance with tax regulations, IFRS, and GAAP accounting standards, with the support of Avalara's powerful tools.

Meet Insurance and Bonding Compliance Requirements:  

Contractors and subcontractors are obliged to carry insurance policies to mitigate various types of risks. Builder's Risk or Course of Construction (COC) insurance provides coverage for the building and related structures throughout the project. Professional liability insurance safeguards businesses against claims that may arise from errors or mistakes made during the course of the project. Additionally, surety bonds may be required to maintain compliance on the job site. These bonds must be issued in a timely manner, easily accessible on demand, and renewed before they expire.

In order to simplify the management of insurance and bond certificates, Acumatica offers an electronic storage system that allows easy access from anywhere and at any time. With the help of bonding reports, contractors can keep track of the work-in-progress (WIP) status during the review process. Furthermore, Acumatica provides status updates that can be configured to notify staff members when policies and bonds are approaching their expiration dates.

Meet Requirements for Lien and Retainage Payments 

Mechanical liens and retainage serve as crucial mechanisms to guarantee payment for contractors and subcontractors upon project completion. A mechanic's lien safeguards labour and material costs, ensuring they are paid even if the project or owner faces insolvency. On the other hand, retainage involves an agreed-upon percentage of the contract's value that is withheld until the project is deemed satisfactory.

To efficiently manage lien deadlines and ensure smooth operations, Acumatica Construction Edition offers comprehensive dashboards, workflows, and business events. These features promptly alert staff members to any issues, status changes, or liens nearing expiration. Acumatica also simplifies the management of initial retainage, handling changes seamlessly to streamline invoicing and payment processes. Whether it's progress billing or time and material billing, retainage is fully supported. Furthermore, the software calculates project cost commitments with retainage in purchase orders and subcontracts, providing contractors with accurate financial insights.

Meet Requirements for Safety and Training 

To maintain a safe working environment, the construction industry must adhere to the strict safety protocols established by the Canadian Centre for Occupational Health and Safety (CCOHS). CCOHS regulations require all construction companies to meticulously document their training practices and certifications in various areas such as fall protection, stairway and ladder safety, scaffolding, electrical safety, trenching and excavation, and highway work zone safety. Additionally, organizations are obligated to maintain an occurrence log that records all workplace accidents and their outcomes. CCOHS conducts regular audits to ensure compliance with these regulations, and failure to produce the proper records can result in temporary shutdowns of job sites or even entire companies. With Acumatica, creating forms and documents to record employee training and occurrence logs becomes a seamless process.

Meet Labour Law Construction Documentation Requirements

The nature of each construction project dictates the specific wage rates and Canadian payroll requirements that must be followed. Payroll is obligated to maintain detailed weekly records that accurately reflect the hours worked, wages paid to each employee, and the specific tasks performed by individuals. When it comes to government-funded projects, certified payroll laws come into play. This means that contractors and subcontractors must adhere to local prevailing wage rates and provide comprehensive weekly records for each employee. In cases where a job site has unionized labour, payroll reports must include information on wages, fringe benefits, overtime, and union dues. It is crucial to note that regardless of the type of project, any failure to produce the necessary reports or demonstrate compliance can lead to severe fines and disrupt the progress of the entire project.

Acumatica's Canadian Payroll solution simplifies the tracking of compensation, union dues, fringe benefits, and other essential employee documentation. The platform seamlessly incorporates certified payroll and reporting functionalities, making it effortless to generate reports on prevailing wages and other pertinent information. Additionally, labour documents can be easily exported for reporting purposes to government entities, unions, and any other relevant parties.

Meet Subcontractor and Vendor Documentation Requirements

When construction companies engage subcontractors and vendors, it is crucial for these entities to comply with the same safety and labour regulations as the contractor. This is especially important when government funding is involved, and special considerations like EEO (equal employment opportunity) or MWOB (minority & women-owned business) are included in the contract. Subcontractors and vendors must provide the necessary documentation to ensure compliance. By using Acumatica, construction firms have the ability to collect and electronically store all the required documentation, certifications, and tax information. These crucial compliance documents can be easily accessed from any device at any time.

How to Simplify Construction Compliance with the Premier Construction Software, Acumatica

To summarize, compliance is a crucial aspect of the construction industry, with various requirements that must be met. However, manually recording and storing compliance documentation can lead to delays in accessing real-time information and hinder workflow efficiency. Moreover, the inability to produce compliance documentation on-demand and the lack of automatic notifications can result in wasted time and financial losses.

Fortunately, Acumatica provides construction organizations with the means to streamline their operations and avoid costly non-compliance errors. Additionally, the inclusion of automatic timestamps ensures that critical documentation is accurately recorded, leaving no room for oversight and potential disruptions.

Customized workflows and permissions further enhance the efficiency of information distribution, ensuring that relevant parties receive the necessary data at the right time. Moreover, financial compliance guarantees that companies are properly compensated for their work. With a wide range of compliance features readily available, Acumatica offers the most comprehensive set of integrated compliance tools in the ERP marketplace.

Furthermore, Acumatica Construction Edition is a comprehensive cloud-based solution with advanced mobile technology, enabling businesses to have full visibility into their operations at any time and from any device.