Excel Vs Construction Estimating Software – Which Is Best For You?

Microsoft Excel represented a huge change for the construction industry nearly 40 years ago, allowing surveyors and estimators to move away from pen-and-paper and use the spreadsheet software to automate their calculations.  

However, technology has moved forward and the market now has a huge range of tools available for estimators to calculate their costings using advanced software developed specifically for the construction industry.  

A 2020 survey by LetsBuild found 85% of the sector still created estimates on Excel. 

As projects grow more complicated, and the industry grows more competitive, we will look at why Excel is still a popular choice in the industry and compare the two approaches to costing construction work.

Excel Vs Construction Estimating Software – Quick Overview

Benefits of Using Excel For Estimating

There are plenty of reasons why many construction companies still rely on Excel for their day-to-day estimating and accounting.  

• Universal - Most professionals in any sector will have at-least a rudimentary knowledge of Excel. While an advanced knowledge is needed to build bills of quantities, Excel does have the advantage of being universally known. New recruits will know the software from day one.
• Versatile - Of course, Excel is a very versatile piece of software. Its endless formulas and functions means advanced users can build complex spreadsheets for handling data. 
• Low-Cost - As part of the Microsoft suite, Excel is a relatively low-cost piece of software.

Problems Using Excel For Estimating 

The “Legacy” Spreadsheet Problem 

Data is essential to running construction schemes, and every construction business uses Excel in its own unique way to calculate bills of quantities. Many use ‘legacy’ spreadsheets, set up years previously and passed on from employee-to-employee as estimating teams grow and change. These can lead to major headaches and rework, and can be especially sensitive to errors as the spreadsheets handle more data and complex projects. 

Excel Isn’t Specifically For Construction

Excel is versatile, but does not contain functionality which is specific to the needs to estimators. While spreadsheets built by advanced users can automate calculations, Excel doesn’t have the power of software specifically developed for estimators. With construction hit by fluctuating prices, increasing regulations and required reporting, and the need for companies to have a competitive edge with the accuracy of their estimates, functionality made for construction such as access to pricing libraries and the ability to make online enquiries for subcontractors. 

These functions will save time and lead to accurate quotes that win bids.  

Spreadsheet Errors Are More Common Than You Think 

Dr Raymond R Panko of the University of Hawaii published a research paper in 2008 that concluded that over 88% of Excel spreadsheets contain errors. Many errors occur from human error such as incorrect data input, formulas not set correctly or logic errors, leading to miscalculations during pre-construction.  

These errors can prove to be costly, can lose bids and eat into margins. If costs are miscalculated due to spreadsheet errors, it is possible that schemes will end up running at a loss.  

Errors on Excel are not only common, but costly. If the error is spotted, it can also be a time-consuming task to fix the spreadsheet without igniting a domino effect on the numbers.  

Spreadsheet Estimates Can Be Time-Consuming

Building a bill of quantities on Excel can take days of work, and involves a lot of copy/pasting and repetitive manual work from the estimator. This was confirmed by Access Construction’s State of Construction 2023 survey of 1,300 professionals, where the ‘time consuming estimating process’ was listed as one of the biggest challenges in their role by 26% of respondents.  

Overall, Excel is versatile, but software developed for construction estimating has automated and integrated a lot of these manual tasks, speeding up the process.  

Building estimates on Excel can also involve a lot of time spent identifying and correcting errors, alongside requested changes leading to recalculations across the sheet.  

Spreadsheets Can’t Create Accurate Estimates 

As the industry grows more competitive, accurate estimates with up-to-date pricing for materials and labour are essential for winning work and developing client relationships.  

Estimates built on Excel tend to have diminished accuracy with a lack of access to real-time data, and difficulties with collaboration leading to errors and inaccuracies. As soon as an estimate is completed on Excel, it becomes out-of-date as prices and data changes.  

Inaccurate estimates built without the most recent data can delay projects, lead to rework and poor profit margins.  

”Version Control” Leads To Collaboration Issues In Excel

Estimates are often a collaborative effort across teams as procurement managers, project leads and those in the back office are able to check and make their own edits and inputs.  

This can often lead to issues with version control, where edits are made to a version of the spreadsheet, but not the core version which is saved on the central system. Changes can be made to the knowledge of one collaborator but not be expressed on the core document.  

The result is miscommunication, data errors, diminished accuracy and issues with relationships between employees. Several version of ‘the truth’ existing at once can lead to a mess where no team member has the truly ‘correct’ version of an estimate.

Benefits of Using Estimating Software In Construction 

Developed Specifically For Construction Industry

Software created for estimators is developed by and for the industry, packed with specific functionality designed to make construction professionals’ lives easier. Task-specific software has everything an estimator needs to build an accurate bill of quantities, with additional functions such as takeoff and online enquiries to help speed up the estimating process and handle it in a single space with a single ‘version of the truth’.    

Creates Estimates Up To 70% Faster Than Excel

Because of this specialised functionality, building estimates on software can often prove to be a much faster and enjoyable process than using spreadsheets.  

Users of estimating software can import values direct from takeoff, track pricing changes, build on existing templates or previous builds and in some cases generate quotes in minutes.  

As data is automatically lifted and doesn’t require human data input, construction estimating software can significantly speed up the estimating process.  

Creates Accurate and Reliable Estimates

Instead of relying on legacy spreadsheets laden with data errors, estimators can use estimating software and take advantage of real-time data, collaboration and fast adjustments to generate bills of quantities which are far more accurate than those built on Excel.  

With pricing changing rapidly in the current market, estimating software such as Access ConQuest can help competitive businesses provide the most up-to-date and accurate costings that will protect your margins. All of this can be achieved at the click of a button, rather than rebuilding complex spreadsheets from scratch.  

Data Is Protected By Cloud Security

While spreadsheet data can be vulnerable to hacking or file corruption, one of the leading advantages of construction estimating software is the built-in security that helps protect your and your clients’ data from ransomware attacks and other cybersecurity threats.  

Data within a construction business is often sensitive, and estimating software will offer security solutions including cloud hosting, firewalls and disaster recovery services to ensure data is never lost or stolen.  

Estimating Software Makes Collaboration Easy

Where version control makes collaboration difficult on Excel, estimating software makes collaboration easy when building costings and quotes for clients.  

Existing quotes can be edited by team members with user licences, allowing knowledge and expertise to be shared and poured into estimates quickly. This helps both client relationships and those between employees as simple collaboration leads to best-possible quality of work produced.  

Estimating Software Is Intuitive and Easy-To-Use 

While most professionals are versed in Excel, it takes advanced users to craft detailed bills-of-quantities on spreadsheets. There is also a lot of variety in how these documents are put together, meaning new staff have to learn the quirks of legacy spreadsheets before getting to work.  

Construction estimating software is designed to be easy-to-use, with new trainees able to produce exceptional and accurate quotes after minimal training. Software vendors usually provide specialised training and plenty of training materials to ensure you get the most from your software.  

As the software is easier and faster to learn, starting new team members on software will save significant time and money in the onboarding process.  

Builds Client/Contractor Relationships 

Estimating software creates better estimates, and clients value the insights and detail provided inside a accurate quote produced using the latest pricing.  

Accurate bids win work, and the professional and well-presented quotes and reports automatically generated by estimating software will help any construction company build a great reputation with clients. 

Estimating software also helps companies be reactive to changes and rework issued by clients. Quotes can be revised and repriced very quickly, leading to happy clients and a great reputation. 

Disadvantages of Using Construction Estimating Software

Of course, it is also worth considering the downsides of using construction estimating software. These are: 

• Initial Costs – Construction estimating software will cost more than Excel, but the benefits in speeding up the estimating process, creating more accurate bids and protecting profit margins leads to a high ROI for the software. Smaller contractors may still see cost benefits of Excel, however.  
• Onboarding Period – There may be a lull in activity as a team adapts to creating estimates in a brand new way. Construction software is often designed in collaboration with those in the industry who help make the user-experience as simple and intuitive as possible, but there may be an initial slow period as the software is implemented. 
• Software May Require Updating – Just like Microsoft Windows has new releases, construction estimating software also requires occasional updates. These will often lead to improved performance and additional functionality, accounting for the relatively small inconvenience of updating your software.  

Transform Your Business With Construction Estimating Software

Access ConQuest is our industry-leading estimating software, helping over 1,000 contractors, sub-contractors, housebuilders, civil engineers and councils grow their business and boost their margins.  

As the industry grows ever-more competitive, estimating software will help keep your business ahead in the bidding and tendering process.