Case study

How Prama Constructions Cut Projected Leakage on a 120 cr Hydropower Project from 5% to 0.2% with Construction ERP Software

A look at how a construction company replaced spreadsheets and paper files with Bricx ERP, and what it meant for one of its largest projects.

Customer Overview

Prama Constructions is a Nepali construction company that specializes in building hydropower projects. Beyond hydropower, Prama Constructions also takes on government contracts and other infrastructure developments across Nepal.

Over the years, the company has worked on [Renowned Project Name 1] and [Renowned Project Name 2], along with numerous other infrastructure and construction projects across Nepal.

Work at this scale means managing a large workforce, a constant flow of material purchases, company assets and the financial records that connect all of it. Each of these carries a cost, and on projects that run for years, even a small percentage lost along the way becomes a very large number. That is the context in which Prama Constructions decided to look for a better way to run its operations, starting with a hydropower project valued at 120 cr.

The Challenge

Before Bricx ERP, Prama Constructions managed its projects and daily operations through a combination of spreadsheets, physical files and separate documents. Bills, procurement papers, inventory records and project information were kept in different places. Updating them took time, and checking one against another took even more.

The working method itself was the problem. When information is spread across files, nobody has a complete and reliable view of the business at any given moment. Questions that should take minutes, such as how much of a material has been used on a project or whether a purchase matches what arrived on site, required someone to collect several documents and compare them by hand.

On the hydropower project, the company estimated that leakage could reach 5% of the project value. For a 120 cr project, that is about 6 cr. The estimate came from several sources working together.

Material leakage

Inventory movements and material consumption were not always tracked properly. When materials leave a store and the records cannot show where they went, losses go unnoticed until the project accounts are reviewed, if they are noticed at all.

Urgent procurement at higher prices

When stock runs short without warning, teams buy in a hurry. Emergency purchases rarely come at the best price, and they often happen because the earlier records did not give an accurate picture of what was available.

Timeline management

Delays in material availability, approvals and coordination affect the schedule, and schedule slippage carries its own costs.

Other gaps in tracking

With resource use recorded across scattered files, it was hard to see where materials, manpower and other resources were being spent and whether that spending matched the plan.

None of these issues were dramatic on their own. Together, they formed the kind of slow, quiet leakage that construction companies know well. It does not show up as one big loss. It shows up as many small ones that add up to a project costing more than it should.

Why Prama Constructions Needed a Centralized ERP

The leadership team at Prama Constructions recognized that adding more spreadsheets would not fix the problem. The issue was that procurement, inventory, projects, workforce, assets and finance were recorded separately, even though in practice they depend on each other.

What the company needed was a single construction management ERP where all of this information could be recorded once and relied on everywhere. It needed a system built around how construction businesses work, covering project operations, workforce and payroll, assets, finances, procurement, inventory and documentation. Bricx ERP was chosen to fill that role.

How Prama Constructions Uses Bricx ERP

Bricx ERP now supports the main areas of Prama Constructions' business in one connected system.

Construction project management

Project information and operational activity are maintained in one place, which gives project teams and management the same view of what is happening.

Workforce and payroll management

Employee records, workforce information and payroll data are organized together. For a company running large projects, this brings order to construction workforce management that used to depend on separate sheets.

Asset management

Company assets are recorded and tracked, so the business knows what it owns and has a clearer view of how those assets are used.

Financial management

Financial records and business transactions are easier to follow, which gives finance and management better visibility into project costs.

Procurement management

Purchasing activity and its supporting documents are organized. This makes it easier to see what has been bought, from whom and for which requirement, and it supports planned buying in place of last minute purchases.

Inventory management

Materials and stock movements are tracked, so the company can see what is available, what has been used and where it went. This is the area that matters most for material leakage.

Documentation and recordkeeping

Bills, procurement documents and other supporting records are kept in one system rather than in physical files and individual folders. Finding a document no longer means searching through several places.

The practical difference is that information now has one home. Records that were once built up by hand from scattered sources are available where they are needed.

The Results

The outcome of the hydropower project can be stated in numbers.

Prama Constructions was working on a 120 cr hydropower project. The estimated leakage for the project was 5%, caused by material leakage, urgent procurement at higher prices, timeline management and similar factors. After Bricx ERP was implemented, leakage was brought down to 0.2%, and material leakage was at nil. This saved an additional 5.76 cr that would otherwise have been lost to leakage.

In simple terms, a 5% estimate on a 120 cr project is about 6 cr. At 0.2%, the figure is about 0.24 cr. The difference is the 5.76 cr that stayed with the project.

It helps to connect each result to the problem it addressed.

Material leakage fell to nil

Tracking materials and stock movements in one system closed the gaps that once let consumption go unrecorded. When every movement is recorded, it becomes difficult for materials to disappear without a trace.

Urgent purchases became easier to avoid

With clearer visibility into stock and procurement, the team could plan purchases earlier. Fewer emergency orders meant fewer purchases made at inflated prices.

Operational visibility improved

Project, procurement, inventory and financial information now sits in one connected system, so management can see what is happening without waiting for files to be compiled.

Resource accountability improved

The company can see what resources are being used, where they are being used and how they contribute to project execution. That makes it easier to ask the right questions when something does not add up.

Documentation became easier to manage

Bills, procurement records and supporting documents are centralized, which makes them easier to retrieve and cross check.

Financial control strengthened

Better visibility into transactions and costs gave the finance side of the business a firmer grip on project spending.

It is worth being clear about what the figures represent. The 5% leakage was an estimate of what the project could have lost, and the 0.2% reflects leakage after Bricx ERP was in use. The 5.76 cr is the amount saved against that estimate. A system does not remove every risk, and a residual 0.2% shows that some leakage remains. What changed is that it was reduced to a small fraction of what had been expected.

Business Impact

For a 120 cr project, the difference between 5% and 0.2% is the difference between a meaningful hit to the project's finances and a minor one. Margins in construction are often thin, and large projects can lose a significant share of them through small, untracked losses. Protecting 5.76 cr on a single project has a direct effect on what the business keeps.

There is also a wider benefit. When information is accurate and in one place, decisions improve. Procurement decisions can be based on actual stock. Cost reviews can be based on actual consumption. Management can spot a problem while there is still time to act on it, instead of finding it in a final account review.

The company also gains a more dependable way to operate going forward. Processes that once relied on individual effort and memory now run on recorded data that anyone with access can check. That makes the business less exposed to the usual risks of paper records and scattered spreadsheets.

“We used to manage our projects through spreadsheets, physical files and separate documents, and it was hard to see where our materials and money were going. With Bricx ERP, our procurement, inventory, finances and records are in one place. On our 120 cr hydropower project, we brought leakage down from an estimated 5% to 0.2%, and our material leakage was nil. That protected 5.76 cr for the project.”

[Name, Designation], Prama Constructions

Conclusion

Prama Constructions moved from scattered spreadsheets and paper files to a centralized system, and the effect was visible in the numbers.

For construction companies managing large projects, multiple sites, growing teams and heavy material requirements, the lesson is practical. Losses often come from gaps in tracking, not from one major failure. Closing those gaps with a construction ERP system built around procurement, inventory, finance and project data can protect a meaningful share of project value.

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