In this article, we’re going to learn all about contractor management software (CMS).

Contractor management software is a tool that helps organizations streamline and automate the processes related to hiring, onboarding, monitoring, and evaluating external contractors and vendors.

The market for construction software is expected to reach $3.875 billion by 2030.

Contractor management software forms a part of that, so it’s clearly the way of the future.

Key takeaways

  • Contractor management software automates many contractor management tasks.
  • CMS helps you better collaborate with contractors.
  • Your business can be more efficient and productive if you use CMS.
  • Improve document management with software integrated with your CMS.
  • Ensure contractors comply with relevant regulations with contractor management software.

What is contractor management software, and what is its purpose?

Businesses use contractor management software to manage contractors undertaking work for their company.

CMS is a system that can assist with the hiring and onboarding of contractors.

It’s for managing contractors from the beginning to the end of a project.

Contract management software automates many of the processes necessary in contractor management.

If you regularly work with contractors, this software is a must. It combines all elements of contractor management into one convenient solution.

It’s your go-to location for everything related to contractors.

The purpose of this is to boost efficiency and productivity.

It can help you control costs.

Additionally, it’s a great way to ensure contractors adhere to regulations.

What features does contractor management software include?

Contractor management software consists of three main features. Each of these pertains to a particular phase of contractor management.


This assists you in determining the suitability of contractors.

Pre-qualification is needed to ensure you get the right contractor for the job.

It checks that potential contractors have the right skills, liability cover, and qualifications.

This is vital when bidding for government contracts.


Contractor management software simplifies the hiring and onboarding process.

This is how you ensure contractors work to your desired standard.

It’s when you lay out your expectations regarding quality, safety, and timescales.


Management functions allow you to monitor the progress of contractors. It helps to ensure contractors complete work safely and in compliance with regulations.

Also, it makes it easier to pay contractors accurately and in a timely manner.

What are the challenges of contractor management companies?

Let’s explore the challenges that contractor management software can help you overcome.

This isn’t an exhaustive list, but it represents the most common problems you may expect to see.

Difficulty finding a suitable contractor

It can be challenging to find the right contractor for any project.

You need to be sure they possess the right skills and qualifications and identify any risk factors that need consideration.

That often means a need to obtain and review the correct documentation.

Independent contractor management software has the tools to help.

It’s generally integrated with document management software.

This is vital in an increasingly digital world as it makes it easier to organize and review necessary documentation.

Disorganized onboarding processes

Once you find a contractor, you need them to get to work as soon as possible, and a disorganized onboarding process can delay that.

Delays can inflate budgets or lead to rushed work.

Rush jobs often mean work that isn’t up to standard.

You can create an efficient onboarding process with contractor management software.

It’s a great way to deliver consistent onboarding for any contractor.

You can provide all the necessary training, safety instructions, and compliance expectations.

You can do this digitally with CMS, meaning you can onboard contractors before they arrive on-site.

Inability to monitor contractors

A significant challenge facing companies is the ease with which they can monitor contractors.

Frequent site visits are time-consuming and costly, and accurate data can be complex.

You may not even know what to look for in a contractor’s performance.

General contractor management software gives you ways to track progress.

You can set up and monitor appropriate metrics while establishing regular online check-ins.

These are opportunities to give and receive feedback. In this way, CMS helps you to ensure contractors deliver.

No visibility on compliance with regulations

You and the contractors you work with must adhere to regulations.

These are often focused on safety whilst working but also apply to the work’s end product.

Non-compliance with these regulations can result in financial penalties.

You should make all relevant regulations and policies available to contractors.

Highlight the importance of compliance during onboarding. This is crucial when working on government contracts.

Contractors can review regulations through government contractor management software.

Lack of communication

Poor communication between you and contractors is a huge obstacle.

It can lead to delays, miscommunications, and mistakes. These all add up to increased costs. The problems arise when people are unsure of the best channel for communication. It’s easy to miss an email following up on a phone call triggered by a text.

Good contractor management software includes tools for communication. This makes knowing where to go for vital information and updates easy. It’s the best way to hold regular feedback sessions and check-ins.

Poor engagement

Good contractors are hard to find as they’re quick to move on to the next job when there’s no shortage of opportunities. You may need their skills in the future.

They may not want to work for you again if they have had a bad experience.

You can retain their skills with the aid of contractor management software.

It helps you better engage with them during onboarding through to completion.

Contractors like clarity when it comes to regulations and expectations.

Software helps deliver that. Moreover, CMS makes it easy to pay contractors accurately and on time.

This is key to attracting them to take on additional work down the line.

Who should use a contractor management database?

Any business that regularly uses contractors will benefit from this kind of software.

This could be in construction but could cover many sectors.

Any business with a large estate of properties will find themselves hiring contractors as they’re necessary for maintenance and improvements.

You could be in retail, healthcare, or manufacturing.

If you have many buildings, you need contractors. Contract management software streamlines hiring and managing contractors and does this no matter what sector you operate in.

The best way to find out if it’s suitable is with a contractor management software free trial.

Then you’ll know how much you need it.

5 benefits of contractor management software

Contractor management software helps you to be more efficient and productive.

So, let’s examine how your business can benefit.

5 benefits of contractor management software

Streamlined project management

There are a lot of moving parts to any project. CMS helps you keep track of each component to ensure they’re all pulling in the same direction.

Software helps you keep track of timescales, KPIs, and budgets.

This is necessary because it informs your decision-making.

You need access to the data in a convenient format, and contract management software can supply that.

Better cost management

Businesses need to be cost-efficient. In a competitive business environment, it means the difference between profit and loss.

If things go badly with a contractor, it can cause inflated budgets and time delays.

This is yet another area where CMS is helpful.

You can take advantage of integrated construction estimating software.

This gives you an accurate idea of the budget for a proposed project.

The CMS can calculate labor and material costs automatically, and you can monitor costs as the project proceeds. Also, it allows you to adjust budgets should the need arise.

Improved communication

Software provides communication tools that make it easy for everyone to collaborate and reduce the possibility of miscommunication.

It does this by giving everyone a go-to platform through which to communicate.

Consequently, everyone involved in the project knows how best to talk, and they can send and receive important information through a central platform.

Centralized communications give you a place for feedback and check-ins.

It’ll be accessible from most devices. Smartphones, tablets, or laptops can all access CMS.

That means contractors can be on-site while you manage things from the office.

Organized document management

Construction projects can generate vast amounts of paperwork. Finding the right form or certificate can be time-consuming. Nobody likes digging through filing cabinets. That’s why digital solutions are so popular.

With contractor management software, documents are easy to organize. It’s safe, secure, and searchable. Document management integration drives improved efficiency. It’s quicker and easier to find and share important documentation.


Every business is different. Every project has unique requirements and challenges.

Contractor management software allows the flexibility to do things how you see fit.

The benefit comes from making it quicker and easier to realize what you’re trying to achieve.

For example, CMS comes with fully customizable document templates.

You can use a construction contract template to create a professional contract, yet it can still be specific to your unique business style and needs.

What are the limitations of contractor management software?

Contract management software can boost productivity, make you more efficient, and assist with budgeting.

However, as with any piece of software, there are limitations.

  • Security concerns: Software that isn’t updated can fail and become vulnerable to cybersecurity threats.
  • The skills gap: Although easy to use, they require a level of computer literacy.
  • Bad in, bad out: The quality of insights you can gain from CMS depends on the data you input.
  • Not all are created equally: There’s a plethora of CMS from which you can choose, and you need to choose the right one for your business.

Top 3 best contractor management software solutions

As any contractor knows, choosing the right tools for the job is crucial.

That also applies to your choice of contractor management software.

To help you decide, let’s examine the pros and cons of the top solutions out there.

1. PandaDoc

PandaDoc screenshot

PandaDoc is a fantastic contractor project management software solution.

They offer premier document management software and incredible collaboration tools.

They also cover the whole range of features expected of contractor management systems. You can easily create error-free contracts and quotes with cutting-edge software.

PandaDoc’s all-in-one platform allows you to sign contracts and share and collaborate on company documents within minutes.

You can also easily choose from 1000+ useful templates in their extensive library to create your perfect documents.


  • Clouds-based for access anywhere at any time
  • 24/7 Support
  • Collaborative online workspaces
  • eSignature capabilities
  • User access controls
  • Automations for mundane tasks
  • Free trial


  • Not purpose-built for contractor management

2. Deel

Deel screenshot

Deel manages contractors for many businesses worldwide.

They’re a cloud-based contractor management platform that charges customers per user.

Their contractor management software helps them closely monitor contractors.


  • Offers limited free version
  • 24/7 support
  • Good training options


  • No free trial
  • Charges per user so costs can mount up
  • They do most of the managing, so you have less control

3. Remote

Remote screenshot

Remote is good for international contract management.

They assist businesses with local expertise.

Remote operates a software-as-a-service model. However, they price on a per-feature basis, which means the full package is very expensive.


  • International
  • Assistance with compliance and legal matters
  • Online and phone support


  • Per feature pricing can mount up
  • No free trial
  • High pricing for each feature

How do I choose the right contractor management software for my business? 10 best practices

With so many options available to you, it’s difficult to know how to decide, but the following tips can help you make the right decision.

1. Determine your goals

Take some time to think about what you’re trying to achieve.

Are you looking to boost efficiency? Do you want to cut costs?

Perhaps contractor management software is going to help you grow your business.

Keep your goals in mind when deciding on your contractor solution.

2. What do you need to achieve your goals?

Each piece of software out there will offer a different set of features.

Make the connection between your goals and the available features. If something vital is missing, move on to another provider.

3. Consider your budget

Effective contract management software comes at a cost.

You may find a solution with more features than you need that blows the budget.

In this instance, focus on what you need to reach your goals. You may find a less feature-rich option that meets your actual needs.

4. User friendliness

Do you have time to learn how to use complex software?

If not, look for intuitive and user-friendly software solutions.

Better yet, find one that includes good support and training opportunities.

5. Do you need document management?

Contractor management often requires a lot of document management, too.

Find a solution with integrated document management. In this way, you’ll see the advantage of the software.

Document management software will provide huge gains in productivity and efficiency.

6. Collaborative tools

Look for a solution with good communication tools. We’ve already discussed the benefits of a centralized communications platform.

It’s one way to create a collaborative environment.

Another way is through the ability to share documents. Find contract management software that streamlines collaboration.

7. Document templates

You can create things like a professional business quote from scratch, but it’s quicker and easier to use a template.

Contract management software that includes document templates is necessary to save time and money. Don’t worry, though.

You can create professional-quality documents with the right CMS.

8. Do you need mobility?

If you need contractors to operate across various sites, you need mobility, and a cloud-based SaaS option accessible across devices is absolutely necessary.

9. Customizable solutions

Find a solution that lets you stay true to your brand and is customizable.

You need to be able to create documents that look and feel like they’re yours.

Contractors and customers can more easily identify with your business in this way.

10. Reporting

Tracking the progress of contractors is vital.

That’s why you need contractor tracking software that can observe key metrics.

You need to be able to view your progress to see how you’re progressing towards your goals.

You can adjust your strategy if the data shows it’s necessary.

Is free contractor management software worth it?

As with most things in life, you get what you pay for.

Free contractor management software will often be feature-poor.

It won’t have the collaborative tools you need to reach your goals.

It won’t have quality document management integration. Also, it’ll be unlikely you can customize it to your specific needs.

A free CMS may suffice for a small business that seldom works with contractors. However, investment is necessary for a business looking to grow and thrive.

Optimize agreement workflows and maximize revenue with effective software from PandaDoc

PandaDoc is the contract management software solution you’ve been looking for.

It has market-leading collaborative tools.

That way, you can communicate and share effectively with your contractors.

PandaDoc improves security and trust with integrated legally binding e-Signatures.

You can create quality documents from ready-to-go templates.

Alternatively, customize templates to be true to your brand. Whatever you choose, PandaDoc helps you ensure compliance.

Frequently asked questions

  • Contractor management can be time-consuming and costly. A growing and thriving business often works with contractors, so a CMS will save you time and money.

  • Prices can vary depending on the features and scale you require. PandaDoc starts at $19 monthly, so try a free trial to see what works for you.

  • Contractor management software helps with onboarding with communication tools and document management, meaning you can better organize the process.

  • Yes. CMS can handle several contractors and subcontractors at the same time.

  • Yes. PandaDoc has integrations with all the leading software. It works seamlessly with the likes of Quickbooks Online and Omniscient.

  • Yes. There are contractor management software products for all businesses. PandaDoc offers tiered pricing so you can find the right solution for your business.

  • Yes, as long as you choose the right software. PandaDoc, for example, is a cloud-based service, meaning it’s accessible anywhere you can connect to the internet. You can use it across a variety of smart devices and computers.

  • They are not the same, but they are complementary. Contractor management focuses on managing external workers and businesses working with your company. Project management takes a broader view of a particular project and so includes the way your business uses contractors.

  • Contractor management software is constantly evolving, so updating your software as the technology improves is vital. A suggested time frame for reviewing software solutions is once every six months.


PandaDoc is not a law firm, or a substitute for an attorney or law firm. This page is not intended to and does not provide legal advice. Should you have legal questions on the validity of e-signatures or digital signatures and the enforceability thereof, please consult with an attorney or law firm. Use of PandaDoc services are governed by our Terms of Use and Privacy Policy.