The verdict in three sentences
A 300-employee general contractor issuing 150 progress billings a month in spreadsheets loses roughly 5 days of cash at every billing cycle. A custom progress billing module costs between 60,000 and 140,000 CAD and ships in 4 to 6 months, while a full construction ERP brings heavy licence fees and forces its own processes. The real gain shows up in working capital: cutting issuance from 8 days to 3 releases several hundred thousand dollars of receivables.
Why spreadsheets break at 150 billings a month
The CFO of a Toronto general contractor juggles percentage-complete billing by trade, 10 % holdbacks under Ontario's Construction Act, change orders, price escalation clauses and subcontractor payments that must follow prompt payment deadlines. Each progress claim goes through three or four people: project manager, cost controller, accounting, then the owner's consultant for certification.
In spreadsheets, errors hide in formulas copied from one project to another. A wrong prior-period total, a forgotten holdback, an unapproved change order billed too early: each one triggers a rejection and pushes payment back by up to 28 days, the prompt payment window.
| Indicator (2026 estimate) | Spreadsheet process | Dedicated module |
|---|---|---|
| Average issuance delay after month end | 8 days | 3 days |
| Claims rejected by the consultant | 12 to 18 % | 3 to 5 % |
| Input time per claim | 2 h 30 | 45 min |
| Escalation calculation | manual, monthly | automatic |
| Holdback tracking | separate sheet | release schedule per contract |
| Prompt payment deadlines | calendar reminders | automatic alerts |
Construction ERP or custom module: the numbers
A firm of this size has two options. A packaged construction ERP covers estimating, purchasing, job costing and billing, but you reorganise around the tool. A custom module plugs into your existing accounting system and mirrors the exact logic of your contracts, including joint ventures and CCDC contract specifics.
| Criterion | Integrated construction ERP | Custom billing module |
|---|---|---|
| Licence or build cost | 40,000 to 120,000 CAD | 60,000 to 140,000 CAD |
| Annual subscription or maintenance | 18 to 22 % of licence | 12 to 15 % of project |
| Time to go live | 9 to 14 months | 4 to 6 months |
| Holdback and escalation rules | standard, sometimes rigid | mapped to your contracts |
| Existing accounting integration | migration often required | connector to current system |
| Team training | 8 to 12 days | 2 to 3 days |
| Code ownership | no | yes |
For a contractor that already runs purchasing and payroll well, a full ERP often means paying for modules you will not use. Custom work makes sense when the pain is concentrated on progress billing and contract tracking.
What the module must cover in 2026
The minimum scope fits in a few blocks: contract and change order register, progress entry by trade from a site tablet, automatic cumulative totals, contractual escalation formulas, holdback schedules with release dates, subcontractor tracking against prompt payment rules, approval workflow and export to the owner's portal. A dashboard gives the CFO billings to date, claims awaiting certification and receivables by owner.
Mini case study
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Sarah, CFO of a 300-employee general contractor in Toronto, bills 80 M CAD a year, about 6.7 M CAD a month. Gaining 5 days on issuance means collecting about 6.7 M x 5 / 30 earlier, roughly 1.1 M CAD of receivables removed from working capital. At a 6 % credit line cost, that saves about 66,000 CAD a year. Add 1.75 hours saved on 150 monthly claims, 262 hours a month, about 1.6 FTE of cost control redeployed. A 100,000 CAD module pays for itself in about 14 months on these items alone (estimate).
FAQ
How much does progress billing software cost for a general contractor?
In 2026, a custom module costs between 60,000 and 140,000 CAD depending on contract rules and integrations. A full construction ERP requires 40,000 to 120,000 CAD in licences plus 18 to 22 % a year in maintenance.
Does the software handle holdbacks under the Construction Act?
Yes, the 10 % holdback, release dates and lien period are configured per contract. The system raises alerts before each deadline, which removes a common source of disputes.
Can we keep our current accounting system?
Yes, that is the point of a dedicated module: a connector pushes entries to your existing accounting software. It avoids an accounting migration that often adds 3 to 6 months.
How long until go-live?
Plan 4 to 6 months: 4 weeks of scoping, 10 to 14 weeks of development, then 4 weeks of acceptance testing on 3 to 5 pilot projects before full rollout.
Are subcontractors covered?
Yes, each claim can include subcontractor invoices and track prompt payment deadlines. That prevents certification delays caused by missing documents, which cost up to 28 days of payment.
Let's scope your project. Send us a sample progress claim, your number of active contracts and your accounting tool, and we will price the scope, indicative budget and timeline. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
