Oracle ERP for Engineering & Construction.

How does ETHX Softcon implement Oracle Projects for engineering and construction companies?

ETHX Softcon implements Oracle Projects, Fusion Financials and SCM for engineering, construction and engineer-to-order businesses, covering the full project lifecycle from bid through handover. The scope includes work breakdown structures, milestones and percentage complete; project costing for labour, expense, material and subcontract work, with committed cost tracked against budget; and stage-of-completion progress billing, retention, accounts receivable and revenue recognition tied to Fusion Financials. Subcontractor agreements, certificates, payments and retention are managed alongside site materials, plant, tools and equipment.

HSE requirements such as safety, training and certifications are supported with audit-trail workflows on Oracle HCM and Projects. The ETHX Project Portal gives project managers, executives and, with access controls, clients visibility into project status. Delivery starts with an assessment of the costing model and billing rules, moves to design of project types and WBS templates, then build, a six-to-eight-week pilot project covering the full bid-to-bill cycle, and portfolio-by-portfolio rollout with project manager training and KPIs.

What should engineering and construction firms plan for in an Oracle ERP programme?

Engineering and construction firms should plan the ERP around the project as the unit of control: how contracts are recognised as revenue, how progress is billed and retained, and how subcontract costs are committed and paid. These decisions determine the project, contract and work breakdown structures, and they are difficult to change once projects are live.

Revenue recognition comes first. Under ASC 606 (FASB Topic 606), an entity recognises revenue over time when one of the specified criteria is met, for example when its performance creates or enhances an asset the customer controls, and it measures progress using an output or an input method. Many construction and engineer-to-order contracts qualify for over-time recognition, often measured by cost incurred against estimated total cost. The ERP therefore needs reliable estimate-at-completion figures, a clear link between performance obligations and contract lines, and a policy for change orders and claims. Revenue methods should be agreed with the controller before project templates are built, because they drive how costs are captured.

Billing and retention are the second consideration. Progress, milestone and cost-plus billing often coexist in one portfolio, and customers commonly withhold retention until completion, so contract setup must calculate retention on each invoice, track the withheld balance and support its release. The same applies in reverse to subcontractors: purchase orders can carry retainage rates and maximum retainage amounts, so invoices matched to the order withhold the agreed amount automatically and the balance is released only after obligations are met. Third, subcontract compliance: insurance certificates, lien waivers and prequalification status should be recorded against the supplier so payments can be held when documents lapse. Finally, committed cost from open purchase orders and subcontracts should sit alongside actuals and budget so project managers forecast from the same numbers finance uses.