What Are The Benefits Of Construction Estimating Software?

Benefits of Using Construction Estimating Software  

 

1. Increased Accuracy 

Achieving accuracy on a construction estimation can be difficult with so many elements of a project to track and prices constantly changing due to inflation, supply chain and materials cost issues. Estimating software helps estimators track every aspect of a quote – labour, materials, subcontractor costs, equipment hire and more, without losing the thread.  

Accuracy is key to any bid, and construction estimating software helps unify your data and ensures it is up-to-date, keeping in-line with price fluctuations. Software also eliminates the risk of human error – a single false input can impact the accuracy of an entire bid.   

Precision is not only appealing to clients in the bidding process, but also helps protect your own profit margins as it will help ensure projects don’t go into the red.  

2. Reduced Costs 

Estimating software can dramatically reduce costs on many levels, from accessing current materials prices to saving time and money on the estimating process itself. Time is also saved on researching, comparing and negotiating with vendors as current prices are easy to access.  

 

3. Reduced Miscommunication, Increased Collaboration  

Miscommunication is the leading cause of expensive rework on construction projects, and can even lead to incomplete or failed projects.  

Estimating software allows estimators to work collaboratively on a single project, meaning there is less chance of costly miscommunications which can lead to project delays. It can act as a consolidating platform, bringing together disparate work and ensuring a smooth pipeline.  

 

4. Fewer Miscalculations  

Even the most experienced Excel user can still make a mistake on a spreadsheet input. Inputting an incorrect price, quantity or using the wrong formula on the wrong cell can lead to costly mistakes and miscalculations.  

These errors and inefficiencies are wiped out with construction estimating software, where you have a clear view and breakdown of costs. Powerful software can also ‘crunch the numbers’ and do your double-checking for you before sending a BOQ to a client. In the case where there is a mistake in the estimate, they are easy to spot in the clear and professional BOQs generated by the software.  

 

5. Faster Estimates 

Construction estimating software helps automate the most time-consuming aspects of construction job estimating. Most platforms can also build on historical data and templates after a few months of use, speeding up the process even further by editing or building on existing BOQ and items lists and databases stored within the software.  

Cost analysis and building in markup can be performed quickly, helping you protect your profits and ensure projects don’t go in the red.   

Completing estimates faster frees estimators to bid for more work, allowing businesses to scale up and increase their bid-to-win ratios.  

 

6. Visibility For Customers 

Bills of quantities generated by construction estimating software gives customers detailed cost breakdowns presented in a professional format. This increased visibility helps your customers make decisions quickly and builds trust in your business.  

Clients who have put a job to tender appreciate bids and quotes which are presented in a way which is both detailed and easy-to-read. All costs are justified within the estimate, with no hidden surprises. This should help your business stand out from other bids. The ability to quickly adjust costs in reaction to changing scopes will also help build client relationships.    

 

7. Easy-To-Use 

There is a wide range of construction estimating software on the market, but most modern solutions push an intuitive and easy-to-use experience for any level of user. Being able to always access the ongoing outline of a project helps keep costing in perspective for an estimator.    

Once initial training is provided, most users will be able to generate their first automated bill of quantities within minutes before diving into the details and adjusting the quote.  

 

8. Improved Client Relationships 

Investing in construction estimating software will help improve relationships with your clients, resulting in repeat business, positive word-of-mouth and building to a stellar reputation for your business.  

Completing project estimates quickly and accurately, with the ability to make adjustments reactively, will only increase customer satisfaction and help build trust in your professional relationships.  

 

9. Better Cashflow 

One of the most important benefits of construction estimating software is its ability to help projects stay on-budget with up-to-date and accurate estimates, improving your cashflow and keeping projects profitable. Estimating software can prove to be an invaluable tool for keeping on top of project budgets – tracking overruns and underruns allows estimators to edit budgets accordingly to stay in-profit.  

 

10. Enhanced Project Planning 

Accurate estimates which take into account materials, labour and equipment costs allows other members of your team to be more strategic and long-term in their project planning. This leads to smoother-running projects and better final results overall. If a project starts on the right foot with a detailed estimate, the complex task of managing a construction build can become easier.   

A clear overview of spends generated by construction estimating software can help project managers and planners save time and money on projects.  

 

11. Makes Your Construction Company More Competitive  

Bidding for projects can be a brutal process, where a lot of time can be wasted on project bids which lead nowhere. Construction estimating software gives your company the competitive edge. Not only are your quotes and BOQ more professional in their clear and transparent presentation, but the accuracy of your estimates where every element is accounted for will help push your bid to the top of the pile.  

Saving time and money on repetitive manual tasks and editing spreadsheets allows your team members to spend their time on valuable strategy that can ensure your company remains competitive.  

Cons of Using Construction Estimating Software  

1. Cost 

The main drawback of adapting to construction estimating software is the initial cost of the product. Costs vary greatly with a variety of pricing models and features included in the software you choose. While there will be an initial cost involved, this will cover not just the software but essentials such as deployment, hosting, initial training and even integration into existing systems.  

While the cost of the software may feel like a drawback, construction estimating software will positively impact cost savings and cashflow from day one.   

Learn more about the cost of construction estimating software >  

 

2. Learning Curve 

Legacy spreadsheets may have their drawbacks, but members of your team, especially those who have been estimating for a long time, will be used to working to existing systems.  

Construction estimating software is a different process to building quotes on Excel, and some estimators may balk at the thought of a steep learning curve that will change the way they work. However intuitive your chosen software is, it will take time to get up-to-speed with the new system, leading to an initial slow-down in the estimating pipeline.  

This is why it is important to invest in training at the start of your journey and ensure your estimating team are confident they can get the most out of any new software.  

 

3. Software Requires Upgrades 

The construction industry continues to transform year-on-year, with technology changing even faster. Construction estimating software comes with the risk of becoming obsolete if it isn’t regularly updated to adapt to new IT systems and platforms. When shopping for software, you should always check with your vendor that development time is regularly being invested back into the product to ensure it is kept up-to-date. You don’t want to be stuck with redundant software and a lost investment.