Enterprise Resource Planning (ERP) is now being hailed as a foundation for the integration of
organization-wide information systems. ERP systems link together entire organization’s operations
such as accounting, finance, human resources, manufacturing and distribution, etc. Moreover, they also
connect the organization to its customers and suppliers through the different stages of the product or
the process life cycle. There are very few studies conducted about the implementation of ERP systems
in the construction industry, particularly for the construction contractors. The focus so far has been on
client organizations, engineering and design firms. The objective of this paper is to investigate the
suitability and the implementation status of ERP systems in contractor firms. The methodology
employed is a mix of literature review, market studies and detailed questionnaire survey. It is found
that the majority of contractor firms have awareness about the ERP systems but very few organizations
have so far implemented such systems. The major reason is that the implementation of any ERP
system needs a huge investment in time, money and resources. However, when implemented to solve
the right problems, these ERP systems can be a powerful tool for business improvement. The study
shed light on the barriers to the implementation of ERP systems in the construction industry and also
highlights valuable lessons learned and benefits gained by companies that have such systems in place.