CONSTRUCTION ESTIMATING SOFTWARE BUYERS GUIDE


CONTENTS

I. Intro to Estimating
II. When to Buy 
III. Software Benefits
IV. Starting your Selection Process 
V. Takeoff Software, Cost Databases, and Worksheets
VI. Vendor Selection
VII. Implementation

Starting your selection process: Getting ready to buy construction estimating software


The first step in any construction estimating software purchase is understanding what kinds of bids your firm will be called on to give.

"If you're working with the transportation department and other departments for the state, for example, you must be able to deliver quick unit-price bidding," Phil Arnt of GCM Contracting pointed out. "In other situations, though, the last thing you want to do is show your competitors your unit-price bids."

Identifying the bids that your firm works with, and therefore knowing what you need from your construction estimating software, is easy if you already have a complete understanding of all internal processes and job functions throughout the estimating department. If that is not already the case, then you need to examine your processes and policies and make sure you're covered, Arnt said.

Key budgetary considerations

Once you've done that, your company -- particularly its leadership -- needs to come to agreement on some key budgetary considerations.

bullet Expect to pay about $10,000 for the core application and hardware you need, such as a computer, digitizer and other workstation elements. Each additional user will add about $5,000 to your costs.
 
bullet You can pay $2,500 or more for add-on supplements to the basic system. For example, if you're planning to have more than one estimator working simultaneously in the system, you'll want to add network estimating functionality. Generally, this pricing is based on the number of users, and can cost $3,000 for up to 10 users. You may also need to purchase additional licenses for enterprise software such as Microsoft SQL Server.
 
bullet Yearly maintenance fees for this software can run $2,000 annually for the first seat, and about $250 annually for every additional user.
 
bullet Training can be expensive, but it is crucial. Arnt generally budgets a two-day training course, $2,500 plus travel expenses, for construction estimating software. Most vendors offer multiple training delivery options, ranging from manuals to on-site training.
 

On top of budgeting for purchase, installation and software maintenance costs, Arnt said you will also need to consider hardware and software upgrades that may be required to run the new construction estimating software adequately.

bullet These applications do a lot of number crunching, so they need fast CPUs and lots of memory.
bullet Your construction estimators may find that they need a two-monitor setup for productivity's sake.
bullet Finally, if you are looking at construction estimating software that runs on Microsoft SQL Server, and you have other SQL-based applications, make sure you are using the same SQL Server version across the board, Arnt recommended.
 

Through it all, you and your company's leadership must take into account the possibility that operations may slow while your estimators are learning the new system.

*** To learn more about the features of an estimating software solution look to the next segment of our construction estimating software buyers guide.

Next: Takeoff, Cost Databases, and Worksheets