RedTeam Software is designed to improve the way contractors do business.
By Jim Harris
As U.S. construction spending reaches its highest level in 10 years, contractors are investing in technology to boost labor productivity and scale up to meet increasing demand. Business has been good for RedTeam Software, an Orlando, Fla.-based provider of cloud project management and accounting software for commercial contractors.
RedTeam Software helps contractors run their commercial construction businesses on a unified platform that includes business development, bid solicitation, cost estimating, contracting, scheduling, project management, jobsite management, document control and accounting.
“There are three things contractors absolutely have to get right to succeed in this industry,” CEO and co-founder Michael Wright says. “First, they have to know how to build; second, they have to closely manage their contracts, and lastly, they have to control the money. RedTeam helps with two out of three.”
Wright, a 21-year construction industry veteran, started building software for his own commercial construction business in the late 1990s. “We simply could not find a solution we liked, that truly helped us do what contractors do each day, ” he says. Although Wright and his business partners initially intended to use their software for their own company, the benefits quickly exceeded their expectations.
RedTeam Software was launched as a new business in late 2006. Although RedTeam scored early success in the market, the Great Recession was especially devastating for the construction industry. Nevertheless, RedTeam stayed the course and focused on product development while supporting a modest portfolio of clients through the downturn.
RedTeam’s origins distinguish it from many similar software packages that are available today. “We’re commercial contractors that got into the software business, instead of a software company going into the construction business,” Marketing Director Fred Guitton says.
Transforming the Business of Construction
RedTeam is designed as a social application that streamlines the work of every employee of a company. The application is role-based, meaning that team members have access only to the projects and parts of the application they are authorized to use. “We have bypassed the days of software being used by someone in the back office doing data entry,” Wright says. “Our software allows people to collaborate in real time, which dramatically improves the efficiency of the entire business.”
The platform efficiently captures critical information from what project team members do each day, facilitating accountability and effectiveness. “RedTeam ensures that everyone in the business has instant access to the information they need to get their jobs done,” he adds.
“One of the more surprising things our customers report to us as a benefit of using RedTeam is the way it changes the way they are viewed in the marketplace,” Wright says. “Many small contractors are viewed as being more sophisticated by the customers they serve, and [RedTeam] changes the way their employees view them as a company.”
Scalability is another important benefit of the system. “Other solutions available in the market were really designed (and priced) for the largest organizations,” Guitton says. “RedTeam can be used by companies as small as a couple of employees, as well as businesses with revenue of several hundred million annually.”
The cloud-based application is available as a monthly subscription. Two paid tiers are available: a “Construction Professional” package that can be used by up to 10 people in a company and costs $75 per user per month (or $49 if paid annually); and a “Construction Enterprise” package, which can be used by an unlimited number of employees and costs $125 for a concurrent session per month (or $99 if paid annually).
An Integrated Solution
Within the past two years, the company has integrated with other industry-leading software applications. ”RedTeam is comprehensive, but we recognize it can’t be everything to everyone, so we will work with other industry solution providers to deliver complementary functionality where our customers need it,” said Wright. In this way, RedTeam is rapidly expanding the capabilities of its namesake platform.
In 2015, RedTeam integrated with QuickBooks Online to provide its users with robust construction accounting and financial reporting capability. Construction companies often struggle with complicated accounting procedures including progress billing, retainage and revenue recognition as a percentage of completion. “The systems are perfectly complementary,” says Wright. “RedTeam handles the construction accounting while QuickBooks handles payments, receipts, general ledger and financial reporting.”
Earlier this year, Red Team integrated with PlanGrid, a drawing management platform that allows all project constituents to view and mark up plans on job sites using mobile devices. “Having plans in electronic form allows more functionality around marking up those plans in the field,” Guitton says. “Contractors create virtual plan sets to streamline collaboration with everyone on a jobsite.”
RedTeam Software is pursuing future integration opportunities. “Over the next few years, we will continue to be a leader in the construction technology industry and will expand by integrating with best-in-class solutions,” he adds. “RedTeam is a complete solution that solves everyday issues for contractors, scalable for what they need right now and fully capable of supporting whatever they dare to achieve.”