The ABCs of Construction Estimating Software
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DiggThis is the second in a series of articles that will help contractors understand what construction software is and what it can do for them; our particular focus here is construction estimating software.
It is common to see contractors, particularly small firms, using a pen and paper to perform cost estimating; implementing construction estimating software would allow those businesses to complete estimates faster and with more accuracy.
A. What is construction estimating software?
Construction estimating software is a collection of programs, processes and information used to calculate the total cost of a construction project. By using construction estimating software, contractors can be more confident that they are not estimating too little (or too much), thus giving them the power to make more consistent and more successful bids.
But construction estimating software is about more than performing calculations and keeping track of costs.
B. What can construction estimating software do?
Every year, new construction materials hit the market, and, directly or indirectly, the price of all other materials, not to mention labor, changes as well. With prices constantly in flux, evaluating all the possible construction costs of a potential project can be too difficult to do by hand. Construction estimating programs are set up to keep up-to-date rate information from a variety of cost databases in the construction industry.
In addition, construction estimating software provides users with digital copies of blueprints, either from scanned images or drawn using a digitizer and takeoff software. This lets you keep floor plan measurements and other notes well organized, as seen in this PlanSwift general contractor takeoff and estimating software screenshot.
Moreover, once contractors have installed construction estimating software and migrated old data into the new program, they can use it to revise old estimates done by hand to catch any incorrect, missing, or redundant entries. This can save a company $1 million in lost revenue or more.
Other benefits that contractors receive when they implement construction estimating software include the following:
Preparing digital blueprints with takeoff modules and sending the files to estimators and project managers electronically can save thousands in printing costs.
Versatile plans that let you see a structure from multiple angles and easily make copies eliminate the need to retrace and recalculate measurements.
Digital notepads can keep a running tally of quantities that is both well organized and easy to share with colleagues.
Multi-user support lets you have all your estimators working on a bid at the same time.
Remote access allows users to make changes and revisions from the job site without having to return to the office.
C. How do you know it is time to invest in construction estimating software?
Many contractors like using Microsoft Excel for construction cost estimating. And why not? It's inexpensive, it's easy to use and it can be customized.
That being said, any one of the following red flags may indicate that it might be time to switch to a specialized construction estimating program:
- You spend a lot of time training new estimators on how to use the company's "personalized spreadsheet."
- Your competitors consistently underbidding you -- and their estimates are more professionally presented and itemized.
- You or your employees have trouble tracking and updating estimates in the normal course of business.
- Your spreadsheets are fine now, but you're not sure how you'll track and manage more estimates if your business grows.
D. Additional resources
The following pages on ConstructionSoftwareReview.com should provide some additional insight into the best ways to start learning about construction estimating software tools and deciding what software might be right for you.