If there are three things that are true about running a construction business, it’s that overhead is high, business is irregular and estimating takes time. But what if contractors could take care of two of those issues while improving the third? That capability is well within reach when adding quality estimating software to the process, allowing improved speed and overhead while bringing in more jobs than ever before.
Compared to using paper plans and a computer spreadsheet, high-quality estimating software allows contractors to estimate 1.5 times more jobs in the same amount of time while improving the estimating department’s accuracy. Quality software solutions provide a range of training options for getting less-experienced estimators on board quickly rather than having to worry about potential costly mistakes as they navigate the learning curve.
How Estimating Software Saves Time and Avoids Errors
Two areas where the estimating process can cost a business a lot of money is the time involved creates large overhead expenses, which must be made up during projects, while cutting back on funding for the estimating process may result in fewer projects coming in, creating a vicious cycle. However, a high-quality estimating software can improve a team’s productivity. Imagine no more switching between paper plans and a spreadsheet or multiple windows. What if they didn’t have to track down the pricing on every single piece of material needed for the project?
Another problem with the estimating process is when errors occur. If one number is off by $.10 across tens of thousands of a particular material, it can cost much of the project’s profits or run the project entirely into the red. If a figure is transposed, miscalculated or otherwise incorrectly applied, the results can be devastating. Good estimating software provides a range of options for dealing with this issue, whether it’s an on-board pricing catalog that is automatically updated, a sanity-check against national averages for similar projects or other options to help prevent errors from leaving the estimating office.
Important Features in Estimating Software
If considering looking at estimating software, there are a number of features to consider before making a purchase:
- Intuitive interface. Estimating software should be easy to use. Instead of having a team stuck for weeks in training and months with questions, look for an intuitive interface that makes training easy.
- Streamline the takeoff to estimate process. Will estimating software only handle the estimate or takeoff process, or will it automatically import takeoff numbers into the estimate? Automation helps improve profit margins.
- One-screen, onscreen takeoff. Instead of switching back and forth between paper and spreadsheets or multiple windows, avoid errors by keeping estimators on a single screen, making their process more efficient and less prone to errors.
- Easy to configure or customize. Estimating software needs to be as unique as the business using it. Ease of configuration and customization is vital to success.
- Catalogs/pricing databases. When working with automatically-updated pricing databases, it is not necessary to track down nearly as much information manually. Instead, simply insert that product from the database into the estimate.
- Customizable assemblies. If the company always uses about the same amount of wire, the same box, the same insert and the same outlet cover, why estimate all those materials separately every time? Creating a custom assembly allows one-click addition of all those separate parts.
- Specific labor categories and options. An estimator knows how much it will cost for the materials in that gym ceiling, but how tough will the job be? Estimating software should include more than simple labor calculations to get the job done.
- Access type. Is the system to be installed in a single location or is it accessible over the cloud? Imagine the additional productivity if the estimator could work from home when a child is sick instead of simply missing work, without the cost of extra licenses.
- System type. What kind of devices will the software work on? If the crew has a question about a specific component when the estimator is visiting Singapore, imagine how much more efficient the process will be if they can check the cloud-based software from their smartphone.
- Interoperability with other software. Will the estimating software automatically transfer the bid information to the accounting system? This allows a quick billing turn around instead of waiting on a paperwork bottleneck.
- Communication across teams. If there’s a question with the plans, how is it handled? Can the team use the system to get answers quickly and get back to work? What about teams in the field? Communications are vital to success.
- Task assignment. What about the different tasks that need to be assigned? On large projects, being able to assign tasks across a number of estimators allows a project to be put together quickly and efficiently.
- Multi-specialty compatibility. Today’s market demands flexibility, and estimating software needs to be as flexible as possible to keep up with any changes in the market without having to undertake a lot of cross-training to make it happen.
- Analytics. As a vital part of the digitization process, analytics take a solid look at every project completed and help determine the most profitable project types. This allows a contractor to search out those specific types of projects in the future, maximizing potential.
Consider upgrading to fully-digitized estimating software
There are some features that should weigh more heavily than others when considering estimating software, and those have to do with digitization. Features that will help keep the construction business flexible and efficient will help it stay competitive in this brave new world. For example, estimating software that is compatible with other software, such as an accounting package, allows automation of certain tasks to lower overall back-office expenses and overhead, improving profitability. Estimating software designed for easy importation of plans or export of customized estimate templates allows estimate to stand out from the crowd.
Fully-digitized estimating software also helps lower costs. Imagine a worker pulling cable 40′ in a gymnasium ceiling for a school retrofit project. The worker doesn’t remember the exact instructions for that odd assembly, so he climbs down 40′, goes to the construction trailer, hopes someone hasn’t run off with that page of the blueprints, look up the information and then return to the gymnasium. With a digitized option, he can simply pull up the information on his smartphone and get back to work in a matter of seconds.
Digitization is making massive changes in the construction industry, and it’s only beginning. Construction is one of the least-digitized industries and has room for major growth for companies that take advantage of current opportunities. It’s changing the pace at which contractors do business, requiring them to look at changes to keep their businesses more flexible, agile and efficient in a changing market. Many construction companies will fall by the wayside if they don’t make smart changes during this transition. Updating the bidding process to include high-quality estimating software helps contractors keep up with these changes successfully.
If considering updating the estimating process, it’s a great time to get started. Many estimating software companies provide free trials, so users can try different types of software before deciding which one is right. Invest in the most advanced, cost-effective software possible to avoid having to make significant changes to the estimating process down the road.
