Insights and Advice for Enabling More Efficient and Sustainable Construction

How Much Does Construction Software Cost: 5 Elements to Consider to Ensure Your ROI

14 January, 2025
11 mins read

Construction management software cost blog post by RIB Software

Investing in innovative software technology has become a mandatory practice rather than a choice in construction. That being said, choosing the right solutions for your business is not easy, as many available tools offer a range of features and functionality that might or might not suit your requirements. A critical element to consider when selecting which construction software solutions to use in your business is the cost. This is not just to look at the upfront costs but also what it will cost you on an ongoing basis.

All too often, particularly if the decision-making process does not involve the key stakeholders who will experience the benefit (or the opposite if poorly chosen), the selection can be based foolishly on price alone without fully understanding its true cost and real ROI. Decision-makers often question whether the expected benefits in terms of productivity and profitability justify the usually high investment costs that come with acquiring new software, especially when working within limited budgets.

So, in reality, how much does construction management software cost? This blog explores the topic, offering insights into the factors that go into software pricing, what you should expect from your solution of choice, and other valuable information.

Let’s dive in!

Types of Construction Management Software Pricing Models

Construction management software pricing types
Types of Construction Software Pricing

If you feel a bit lost or overwhelmed while selecting a construction software package, don’t worry; you are not alone. After all, there is no one-size-fits-all solution out there; it will solely depend on your company’s needs, project size, expectations, and budget. Understanding how the pricing models for these solutions work can help you start looking with a clearer picture in mind.

Construction management software is generally priced using three pricing package types. We explore them in more detail below.

Perpetual License

As its name suggests, a perpetual license is a one-time upfront payment to acquire the software. The upfront price might change depending on the number of users or features the company wants to have and might include additional costs for future upgrades or support. Therefore, large companies often purchase this license because they can afford the initial investment and reap long-term performance savings. It is important to note that perpetual licenses are usually offered for on-premise software hosted and maintained on the company’s servers. 

Subscription License

Subscription-based licenses are the most popular today. These packages, mostly deployed in the cloud, come with a recurring subscription fee that might be monthly, annual, or a different period, depending on the provider. The fee is usually based on various factors, such as the number of users, the number of construction projects your company manages, or the features you want to have. Some providers charge a flat rate regardless of any of the conditions mentioned before, while others charge based on the consumption of the software.

This construction project management software pricing option is often the best for smaller or growing companies, as the subscription supports scalability and growth as the company grows. That said, while the upfront costs of subscription licenses are lower than perpetual licenses, subscription packages also include additional costs for exceeding storage capacity or data migration costs if you ever decide to move to another solution.

Open-source License

Open-source licenses offer the software’s code for free. This means anyone can use, modify, and distribute it without any associated expenses. However, these solutions are often basic and offer limited functionalities that would not suit the requirements of complex or large construction projects. Therefore, they are best suited for smaller companies. There might also be unexpected costs from implementation, training, etc.  

Free License

Finally, a free license is a basic, free software version that offers limited functionalities for project management and team communication, among others. Like open-source packages, free licenses are better suited for small businesses or single contractors looking to reap the benefits of technology but don’t have the money to invest in a paid package. 

What Factors Affect the Cost of Construction Management Software

As hinted at a little earlier, the license you purchase is not the only factor to consider in the price of construction software. During the process, you’ll find upfront costs like licensing, installation, and training and recurring expenses like subscription fees or maintenance. Additional factors that can affect the final price of construction management software include:

  • Features: The nature of the features provided by the software is a massive factor in its price. A tool that offers basic construction project management features might be less expensive than one that offers real-time reporting, document management, BIM-based collaboration, etc.
  • Number of users: As mentioned before, the number of users is a massive factor in the cost of these solutions. Most providers charge a fixed fee per user, so companies must be careful and accurate when estimating the required number of users.
  • Integration: Integrating existing systems for accounting, HR, or others with new software is a fundamental requirement for most businesses investing in construction software. That said, integration capabilities can also raise the price of the investment as there is a need for a developer, data exchange, training, and others.
  • Deployment: The software’s final price will also depend on whether it is deployed on-premise or in the cloud. On-premise solutions require an IT team and upfront investments in hardware and maintenance. On the other hand, cloud-based construction software offers lower upfront costs, as the provider carries the abovementioned costs.

What to Consider When Looking at Construction Software Costs

What to consider when looking at software costs: tips
Tips to Consider When Looking at Construction Software Costs

So, you know what factors affect the cost of construction software and what kind of licenses providers offer. But what should you take care of from your end?

Assess the Size and Complexity of Your Projects

Before conducting research or purchasing, the first step is to evaluate your needs and goals to find the solution that best suits them. A big part of that is assessing the size and complexity of your projects. What are they missing to achieve the expected results? Asking yourself this crucial question can help you determine the level of sophistication you need from software and what features and technologies to look for.

Existing Hardware and Services

Another relevant question you should ask yourself is whether you will need to make additional purchases or enhancements to your existing infrastructure to implement the software? Possible requirements might include a server if it is to be locally operated or increased internet bandwidth if accessing the software “as a service.” A common requirement might be upgrading the individual hardware for employees, such as PCs and laptops.

These aspects should be very straightforward to assess, and your potential vendors will be able to clearly outline and define the system and operational requirements for you.

Embedding & Customization

Although generally considered to be ‘re-inventing an incredibly complex wheel,’ some businesses will consider custom or bespoke software. This will invariably involve design costs and design change costs before even considering the installation cost.

Don’t overlook the impact and associated cost of configuration and testing, which is essential to ensure a smooth transition (construction software will need to reflect and enhance your existing systems and workflows, not work against them or create log jams and hang-ups).

Ensure your chosen software provider is well-versed in handling this embedding stage, as a poorly executed implementation can impact productivity in construction projects.

Upgrades Maintenance and Admin

The market-leading providers of construction software provide outstanding maintenance and support. Before signing on the dotted line, there are many questions to iron out, so ensure you have identified all ongoing support contracts and whether they are included in your software subscription or licensing fees. Few (if any) modern construction companies will have employees on staff who can provide their own maintenance and support, which could potentially hinder or even destroy the efficiencies and ROI your software intended to deliver.

Product Training and Ongoing Support

Your software will only be as effective as the users will make it (how many companies do you know that have great CRM systems that employees simply don’t use? Although modern construction software has considerable autonomous functions, your staff must be trained to use it.

What degree and depth of training does your software partner offer, and what is included in your license or subscription fee? What testimonials and customer feedback can they share to demonstrate the effectiveness of this training, and what user manuals do they provide? Remember to check what ongoing training is available for new employees and users. Will future training be possible for existing users to deliver, or will the software provider need to return and deliver?

Summary of Construction Software Price

Any business owner who has implemented changes and enhancements will know that the considerations are extensive. There will be local and business-specific elements to consider that are particular to your setup, but having a plan and using the guidelines above will steer you in the right direction.

Above all else, don’t be afraid to ask any questions that come to mind when reviewing the choices available. The best construction software providers will be expecting questions and will be able to field them all. They may have embedded changes and enhancements to their product offerings to address your concerns in addition to those already raised by the world’s leading construction businesses.

At RIB Software, we are leading providers of innovative construction software developed by professionals with decades of experience in the industry. Our solutions include state-of-the-art construction cost management software, construction analytics software, BIM takeoff software, and much more to take your projects to the next level. Plus, our experts are always available to help answer any questions or concerns you might have, helping you make the most of your investment.

If you want to benefit from innovative construction technology, get your free demo of RIB’s toolkit today!