What Is Construction Forecasting Software?

Construction forecasting software is a project management tool used to predict future project costs, labor needs, resource requirements, schedules and financial outcomes. It is commonly used by contractors, project managers and construction firms to improve planning, reduce uncertainty and make informed decisions throughout a project’s lifecycle.

Rather than relying solely on historical reports, these platforms analyze current project data to estimate what is likely to happen next. Forecasts may include final project costs, expected completion dates, workforce demand, equipment utilization, cash flow projections and profit margins.

By identifying potential overruns, delays and resource shortages before they occur, construction forecasting software helps teams take corrective action earlier. This allows construction organizations to improve budget control, allocate resources more effectively and increase the likelihood of delivering projects on time and within budget.

If you’re looking for software to plan, schedule and track construction projects from start to finish, try ProjectManager instead. ProjectManager is award-winning construction project management software that gives construction companies tools to ensure projects are completed on time, within budget and within scope. It allows project managers to create detailed construction schedules, estimate costs, allocate resources, set budgets, track progress and compare estimated versus actual project outcomes using real-time dashboards and reports to quickly identify delays or cost overruns. Get started with ProjectManager for free today.

Construction Forecasting Software Features

Strong forecasting capabilities give contractors a clearer view of project performance before issues affect budgets, schedules or profitability. The sections below explore the core forecasting functions found in construction forecasting software, including cost, labor, resource and schedule forecasting tools used to support planning and decision-making.

Construction Cost Forecasting

Construction cost forecasting features are tools used to predict future project expenses and estimate the final cost at completion. They are commonly used in construction projects to monitor spending trends and identify potential budget risks. These capabilities analyze budgeted and actual costs, forecast remaining expenses, evaluate cost variances and estimate the financial impact of change orders, material price fluctuations and subcontractor commitments.

As a project progresses, small cost deviations can quickly develop into significant overruns if they go unnoticed. Within construction forecasting software, cost forecasting features provide early visibility into budget performance and future financial outcomes. By projecting remaining costs and highlighting emerging risks, they help contractors make informed decisions before profit margins, cash flow or project viability are negatively affected.

Best Construction Cost Forecasting Software

Construction Labor Forecasting

Construction labor forecasting features are tools used to predict workforce requirements and labor-related costs throughout a project. They are commonly used in construction planning to align staffing levels with scheduled work. These capabilities forecast labor demand, crew assignments, overtime requirements, hiring needs and productivity trends while estimating payroll expenses and trade-specific workforce availability.

Labor often represents one of the largest and most variable project expenses, making workforce planning critical to accurate forecasting. In construction forecasting software, labor forecasting features help teams anticipate staffing shortages, avoid unnecessary overtime and balance workloads across projects. Better visibility into labor capacity and costs supports more reliable budgets, schedules and resource allocation decisions.

Best Construction Labor Forecasting Software

Construction Resource Forecasting

Construction resource forecasting features are tools used to predict future equipment, material and inventory requirements for a project. They are commonly used in construction operations to ensure resources are available when needed. These capabilities forecast equipment utilization, rental needs, procurement activities, inventory levels, material quantities and supply chain risks that could affect project execution.

Even well-planned projects can experience delays when equipment is unavailable or materials arrive later than expected. Through construction forecasting software, resource forecasting features help teams identify shortages before they disrupt work in the field. Forecasting future demand improves procurement planning, reduces idle equipment costs and supports more efficient use of available resources across multiple projects.

Best Construction Resource Forecasting Software

Construction Schedule Forecasting

Construction schedule forecasting features are tools used to predict future project timelines and evaluate potential schedule outcomes. They help anticipate delays and forecast completion dates. These capabilities analyze milestone progress, critical path activities, schedule variances and alternative scenarios while assessing how weather, resource constraints or task slippage may affect delivery.

Deadlines become difficult to manage when teams only react to schedule problems after they occur. In construction forecasting software, schedule forecasting features provide a forward-looking view of project progress and timeline risks. Scenario analysis allows project managers to test possible outcomes, evaluate corrective actions and make scheduling decisions that improve the likelihood of on-time completion.

Best Construction Schedule Forecasting Software

Construction Profitability Forecasting

Construction profitability forecasting features are tools used to predict the financial performance of a project and estimate expected profit outcomes. They are used to evaluate whether work remains financially viable. These capabilities forecast gross profit, profit margins, return on investment and final project results using estimate-at-completion and forecast-at-completion calculations.

Winning work is only valuable if projects remain profitable from start to finish. Within construction forecasting software, profitability forecasting features help contractors understand how changing costs, productivity levels and project performance affect financial results. Early visibility into expected margins allows teams to adjust spending, control risks and protect profitability before issues become difficult to correct.

Best Construction Profitability Forecasting Software

Construction Portfolio Forecasting

Construction portfolio forecasting features are tools used to predict financial and operational performance across multiple projects. They are commonly used by contractors managing several jobs simultaneously to evaluate future business conditions. These capabilities forecast company-wide revenue, cash flow, backlog, resource demand, capacity utilization and projected profitability to support strategic planning and growth decisions.

Looking at projects individually can hide broader trends that affect overall business performance. Through construction forecasting software, portfolio forecasting features provide a consolidated view of future workload, financial health and resource requirements. This perspective helps executives balance project commitments, avoid overextension, allocate resources effectively and make informed decisions about pursuing new opportunities.

Best Construction Portfolio Forecasting Software

Construction Risk Forecasting

Construction risk forecasting features are tools used to identify and predict conditions that could negatively affect project outcomes. They are commonly used during the construction planning phase to detect emerging threats before they cause disruptions. These capabilities evaluate risk indicators such as potential cost overruns, schedule delays, productivity declines, safety concerns, subcontractor performance issues and cash flow problems.

Many construction problems develop gradually before becoming visible in project results. As part of construction forecasting software, risk forecasting features provide early warnings that allow teams to respond sooner. Predictive alerts and risk scoring help project managers prioritize attention, reduce uncertainty and address issues before they lead to budget overruns, missed deadlines or operational disruptions.

Best Construction Risk Forecasting Software

Construction Forecasting Dashboards and Reports

Decision-makers need forecasting data presented in a format that is easy to understand and act upon. Construction forecasting software uses dashboards and reports to consolidate projected revenue, costs, profits, cash flow, labor demand, equipment needs, backlog and risk indicators into a single view. Real-time visibility helps stakeholders monitor trends, identify issues quickly and make more informed project and business decisions.

Best Construction Forecasting Dashboards and Reporting Software

ProjectManager Is Designed for Managing Construction Projects

ProjectManager offers a comprehensive construction project management software that combines advanced scheduling, resource management, cost tracking and team collaboration in a single platform. Construction managers can build Gantt charts, manage task dependencies, identify critical paths and monitor project performance without the expensive price tag and steep learning curve commonly associated with Microsoft Project.

In addition to traditional construction scheduling capabilities, ProjectManager includes AI-powered project insights, workflow automation and live performance tracking that help teams identify delays, manage risks and make better decisions.

Beyond scheduling, ProjectManager includes workload management, resource scheduling, portfolio roadmaps, real-time dashboards, kanban boards, timesheets and automated reports that help construction companies balance labor resources, monitor project costs and track performance across multiple projects. These tools provide greater visibility into schedules, budgets and resource utilization, making it easier to keep construction projects on track.

Watch the video below to learn more!

The platform also supports an open API and more than 1,000 integrations with tools like Acumatica, QuickBooks, Microsoft Project, Slack and Google Workspace, allowing construction companies to connect operational and project data across their existing systems. The Acumatica integration is particularly valuable for construction businesses because it connects project management workflows with ERP capabilities such as accounting, financial management and operational reporting.

For organizations looking for a modern construction project management platform that combines construction scheduling, resource planning, budget tracking, collaboration and ERP connectivity, ProjectManager is the best alternative to Microsoft Project.

ProjectManager is online construction project management software that empowers teams to plan, manage and track their projects in real time. We connect architects and engineers in the office with your work crew on the job site so they can share files and comments to foster better collaboration. Get started with ProjectManager today for free.

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A project network diagram helps project managers simplify a complex project plan, enabling them to see the project network. It’s important to have an overview of any project, see when it starts and finishes, and quickly note all the activities and how they work together. The critical path method uses project network diagrams to achieve this.

However, some might avoid project network diagrams, thinking of them as dense schematics that depict the nodes and connections in a computer network. That would be a mistake. Project managers need tools, and the project network diagram is a great one. Let’s start with a project network diagram definition, then we’ll dive into examples, free tools and project management software.

What Is a Network Diagram in Project Management?

A project network diagram is a visual representation of the workflow of a project. A network diagram is a project management chart that is populated with boxes noting tasks and responsibilities, and then arrows that map the schedule and the sequence that the work must be completed. Therefore, the project network diagram is a way to visually follow the progress of each phase of the project life cycle to its completion.

Project managers use a network diagram to track the project schedule network, allowing them to see the progress of each activity. Then they can share the status with the rest of the project management team. This is especially helpful for those who better understand information that is delivered visually. For those team members, project network diagrams will help with the performance of their tasks and increase the project’s productivity.

Another aspect of the network diagram is that it illustrates the project’s scope. That’s because the project network diagram collects all the activities, milestones and deliverables defined on the work breakdown structure of the project. The Critical Path Method (CPM) and the Program Evaluation and Review Technique (PERT) are good examples of how to use network diagrams in project management. Project managers use these methods to estimate the duration of the project and create a project schedule.

Types of Project Network Diagrams: ADM & PDM

Project network diagrams can be divided into two types, the arrow diagram method (ADM) and the precedence diagram method (PDM). The main difference between an ADM and a PDM project network diagram is the way they represent tasks and milestones.

Arrow on Arrow Network Diagram

As expected, the arrow diagramming method uses arrows to represent the project activities, with the tail of the arrow being its start and the point at the finish. The length of the arrow is the duration of the activity. The arrows connect nodes or boxes that are milestone symbols of the start and finish of the activity in sequence.

Precedence Network Diagram

In the precedence diagram method, each node or box is an activity. There are arrows, but in this case, they represent task dependencies. There are four types of task dependencies:

• Finish to start: This means an activity cannot start before its predecessor is finished.
• Start to start: Use this when two activities can begin simultaneously.
• Finish to finish: Use this when activities must finish together.
• Start to finish: Use this when one activity cannot finish until another one starts.

Project Network Diagram Examples

Here are two project network diagram examples to help you understand how they’re used in project management. They illustrate the two main types of project network diagrams. We recommend creating a work breakdown structure in both cases.

Critical Path Diagram

Here’s a simple project network diagram example created to make a project schedule and identify the critical path, or the longest sequence of tasks in a project. These tasks must be completed on time or else the project completion will be delayed.

Any other project tasks outside of the critical path have slack, which is the length of time in which they might be delayed without affecting the overall project schedule.

The critical path network diagram below shows two task sequences starting with tasks A and B respectively, which need to be executed simultaneously to complete a project. It uses the critical path method algorithm to calculate the duration of tasks, estimate the total length of the project schedule and find activities with zero slack to identify the critical path of a project.

It’s a precedence diagram, so project tasks are represented with nodes that show information about them while arrows indicate task dependencies.

Now let’s zoom into each component of this project schedule network diagram. On the left side, there’s a table showing the project tasks’ names, duration and their dependent tasks.

Then, each task is represented by a node that shows its name, duration and expected start and finish dates in the critical path network diagram based on four variables: earliest start, earliest finish, latest start and latest finish.

• Earliest Start (ES): The earliest a task can start based on its preceding tasks. Because task A has no predecessors, its ES is zero because it can start right away. In the same way, the earliest start for task C is 12 because that’s the earliest its predecessor, task A can finish.
• Earliest Finish (EF): The earliest finish of a task is the sum of its earliest start and its duration.
• Latest Start (LS): The latest a task will start in the event its preceding task takes the longest time to be completed.
• Latest Finish (LF): Indicates the latest time for a task to be finished based on the sum of its latest start and its duration.

By making these simple calculations, you can use a critical path network diagram to make a project timeline and estimate its duration no matter the industry.

PERT Chart Network Diagram

PERT charts are a type of project network diagram that represents tasks, dependencies and their start and end date. As you can see in the image below, this arrow diagramming method also helps project managers identify the total duration of a project schedule. However, unlike critical path network diagrams, PERT charts use arrows to represent tasks instead of nodes while nodes represent project milestones.

Like a CPM chart, PERT diagrams use a table to list project tasks and their preceding activities. However, a PERT project schedule network diagram uses a pessimistic, optimistic and most likely time estimate for the duration of each project task. Having three different time estimates helps project managers calculate the most realistic duration for each project task.

• Optimistic Time: The minimum amount of time possible to complete a task, assuming there are no issues or delays.
• Pessimistic Time: The worst-case scenario in which a project task takes the longest time to be completed due to the occurrence of issues and delays.
• Most Likely Time: The estimated time it takes to complete a task on “normal conditions”, based on historical project data, subject matter expert forecasts and the project manager’s expertise.
• Expected Time: How long it’ll take to accomplish the task or activity based on the optimistic, pessimistic and most likely time estimates. The expected time is calculated using the PERT chart formula below.

E=(O + (4*M) + P) / 6

Lastly, the PERT chart network diagram allows project managers to gauge how accurate their estimates are by calculating the standard deviation of each project task duration. The lower the standard deviation for a task, the more certain its estimated duration will be.

(P-O) / 6

The best part is that PERT and CPM network diagrams can be used simultaneously to make a more accurate project schedule. Now let’s go over the process of making a project network diagram.

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Critical Path Template

Use this free Critical Path Template for Excel to manage your projects better.

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How to Make a Project Network Diagram in 3 Steps

No matter what type of project management network diagram you use, you’ll need to follow the same fundamental fixe steps. First, you need to understand the chronological order in which activities need to be executed and define the project network diagram’s start and endpoints. When you’re plotting your diagram, use arrows that go from left to right. That’s how people read in the West, and the diagram should intuitively follow that pattern.

You’ll want to make your project network diagrams as clear and easy to discern as possible. That means don’t clutter the page with arrows that cross one another. Any arrows that you use for directional purposes should be straight. But the length of time that an arrow represents shouldn’t be determined by its length.

1. Create a Predecessor Table

A predecessor table is a simple table that lists the activities in one column and notes their preceding tasks in another. Here’s the predecessor table for our PERT chart network diagram example. Remember that this is a predecessor table for an arrow diagramming method, where the arrows represent activities, and nodes represent milestones.

2. Identify the Activities for Your Project Network Diagram

Before you even put pencil to paper, you need to organize your tasks. You don’t want to start making your project network diagrams and realize that you’ve left out some important activities. There are also task dependencies, where tasks can’t start or end until another activity starts or ends. Identify these with a work breakdown structure and break the project into its phases. Then you’re ready to start designing your project network diagram and find out the critical path.

3. Make a Rough Draft of Your Diagram

On a more basic level, start your project network diagram by penciling it out first or making a simple project workflow diagram. You can then erase and move items around until you’ve designed the most effective schedule network diagram.

Once you’ve made the final design, think about the type. Different fonts can emphasize parts of the diagram and make your project network diagrams easier to read. A legend or key in the corner will also help the reader understand.

Free Network Diagram Software Tools

There’s only one way to know if a project network diagram is for you or not: try it. Lucky for you there are a lot of free tools to make a network diagram online. We picked three of our favorite project network diagram software for you to kick the tires and take out for a ride.

1. Google Draw

Google has a tool for everything you do, so it almost goes without saying that they have network diagram software. Google Draw is completely free (you don’t even have to put in your credit card). It can help you make flowcharts, UML diagrams, entity relations, mockups and, of course, project network diagrams.

Data is stored on Google Drive, but it can also store data on Dropbox and OneDrive. Google Draw can import from a variety of file formats, and it has 27 languages and is easy to share. It’s fast and has real-time collaborative support when connected to a Google account.

On the downside, there aren’t a lot of templates and shapes to choose from to create a project network diagram. In addition to this, its features are too limited to be considered a network diagram software for project management. It can be a bit of an uphill battle to learn if you don’t have a design background. This platform is best if you want to make network diagrams occasionally and collaborate with other Google apps.

2. Gliffy

While Gliffy is free, the free version is very limited. If you like it, you’ll probably want to pony up for the full version, with a subscription cost. The cost is tiered, $14.85 every three months for a single user, who can make 200 network diagrams, but none of which integrate with Google Drive. A single-user business account is $29.85 for three months, which includes unlimited diagrams, but it still won’t integrate with Google Drive. For that, you’ll need the business team package, which costs $59.88 a year. The fact that the diagrams are easy to make and collaborate with will probably help with the transition from free to paid.

Gliffy is a web-based app and is not suited if you’re looking to make more technical diagrams. However, it’s a free network diagram software which is a good first step into network diagramming.

3. Canva

Canva is a free graphic design software that can be used to create various types of tables and charts, some of which can be used for project management such as Gantt charts, project calendars and network diagrams.

However, Canva doesn’t have any project management features, so these network diagrams are not suitable for making a project schedule or estimating the duration of projects.

Advantages and Limitations of Project Network Diagrams

Now that you know what a project schedule network diagram is, let’s take a more critical look at the pros and cons of network diagramming in project management.

Pros of Project Network Diagrams

Starting with the pros, network diagrams are a boon to project planning. The technique collects all the necessary tasks that are needed to complete the project successfully. This attention to detail before starting a project will help identify the critical path activities and where float, or the time a task can be delayed, might exist.

Making a project network diagram is also a great way to create a project schedule and, having all the activities laid out on one chart makes it easier to order the material resources and equipment needed to accomplish them. This description of resources will help with cash flow and assembling the right project team.

Additionally, having the tasks on a project network diagram, and being able to see where they’re dependent on other activities, can help resolve issues as they arise during the project management life cycle.

Cons of Project Network Diagrams

There are also limitations. Making a project network diagram takes time and costs money to produce. Also, the project schedule network can be overly complex and difficult to discern visually in some cases. That defeats one of the main purposes of a project network diagram.

Of course, there can be errors when making project network diagrams or other unknown factors that can influence the data collected; all of this can make the network diagram misleading and potentially damaging to your project schedule. Using network diagram software doesn’t guarantee that the network diagram will accurately represent your project schedule if the sequences of activities are not mapped out correctly.

Some don’t believe in the necessity of a network diagram and that other tools cover the same ground. For example, there is the Gantt chart, which is also a graphic representation of the project timeline with tasks, duration and dependencies. A Gantt chart is an important project management tool that can also allocate resources, update project status and track tasks and time.

Best Practices for Project Network Diagrams

Taking advantage of the positives and avoiding the negatives of project network diagrams means you need to know what works. For example, a network diagram is a visual language, and like any communicative method, it requires using symbols that are shared and universally understood.

Project Network Diagrams Come to Life with ProjectManager

A project network diagram is a good start, but you’ll need more than a diagram to control the project management phases. Better to execute your project with a tool that offers full service. ProjectManager is online project management software that takes workflow to the next level.

ProjectManager gives you the tools to turn your project network diagram into a full-fledged project schedule with online Gantt charts that allow you to identify the critical path, assign tasks to your team members and add durations and due dates. You can avoid bottlenecks in your workflow by linking tasks that are dependent on one another. Break projects into milestones to further make large phases of the project more digestible.

There’s even a resource tool that shows which team members are under or overallocated to keep the workload balanced. This keeps work flowing and prevents costly overallocation of resources or missed deadlines.

Visualize Workflows with Dynamic Boards

Workflow is further managed with the kanban project view. Just switch to the board view and everything on your Gantt is now reflected in a kanban board. The workflow is represented by customizable columns, which indicate where each task is in the project.

Each task is a card that can be dragged and dropped from column to column, which provides transparency into the process and keeps teams focused on just the tasks that they can complete. When team members update their status, that data is instantly reflected across the entire software. Automated email notifications keep teams alert when changes are made or deadlines are approaching.

ProjectManager gives project managers and teams the tools they need to manage their workflow, know their responsibilities and stay on schedule.

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• Gantt Diagram: A How-to Guide with Example
• How to Make a CPM Network Diagram Step-by-Step
• Wie man einen Projekt-Netzplan erstellt
• Comment créer un diagramme réseau de projet : outils et exemples gratuits
• ¿Cómo Hacer un Diagrama de Red de un Proyecto?

After you’ve given the free network diagramming apps a spin and get a feel for how they handle, take a look at ProjectManager, online project management software. Our online Gantt chart does much of what a network diagram can do, but also always for real-time collaboration and status reporting and it’s easy to change as the project changes. Try it free for 30 days with this trial.

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