It seems like something so trivial. Construction estimating software, or software designed to forecast costs on a specific project, seems like something every construction company would want—it’s made to save construction companies money and time while increasing the bidding process’s accuracy.
But the reality is that construction estimating software can provide so much more than its surface-level features. Why? Check out these five largely unknown reasons that construction estimating software is worth the investment.
1. Construction estimating software thinks lean.
Are you a lean advocate? For many construction firms, it’s difficult to apply their project management style of choice to construction estimations. But modern-day construction estimating software changes this thought paradigm completely.
For example, COMSS has a construction estimating software option that strips away all features or functions that are “not essential to the success of the business and as a result has created streamlined workflows for greater efficiency and effectiveness.”
And that tends to be the trend—construction estimating software is simple to learn and exercise, making implementation easy for any-sized firm.
2. Bidding competition is fiercer than ever.
40% of respondents to an HCSS survey claimed they saw an increase in the number of bidders between 2011 and 2012. One major contributor to the number of increased bids is an increased capacity to bid. Long gone are the days when estimations and bids were done by hand or on spreadsheets.
Construction estimating software makes the entire estimating and bidding process run so much quicker that construction companies can place more bids than ever before. That means that construction companies without bidding software are suffering a double disadvantage: they cannot complete their bids nearly as quickly, and because they’re using non-construction specific software, they’re more likely to make costly mistakes in their estimations.
3. Forget the hassle of materials estimating.
So much of the estimating process relies on subcontractors—construction firms are constantly trying to figure out how much do they charge for labor and materials. Thankfully, construction estimating software rids the industry of disparate spreadsheets and time-consuming cost-estimates.
For example, Plexxis Software specializes in streamlining common construction materials for subcontractors and contractors alike. Users can track their materials by manufacturer item code so there isn’t any confusion on the price or quality. This process makes it easy for subcontractors to figure out the exact quantities they need—eliminating waste and duplicated estimation work.
4. Add extra value to your estimates.
Even The Wall Street Journal is reporting on it: construction estimating software is the best way to help construction companies add value to their construction estimations—making their firm more attractive to potential clients. For example, contractors can use construction estimating software to point to areas that would add long-term value to the home instead of short-term and costly renovations.
Because estimates can so quickly be turned into bids, construction estimating software can also help contractors avoid scope creep. Because construction estimating software helps lay out where all funds of a project are being spent, clients gain an understanding of how much a change in scope would cost and are deterred from making last-minute project changes.
5. Save money. A lot of it.
According to Capterra’s own research, construction estimating software comes with quite a range of features. While some might choose construction management software with estimating as a feature, others might want to hone in on a software option that exclusively does estimates and bidding.
Some of the cheapest construction estimating software starts at a flat install rate of $595. However, that low price is rare, as the industry average is $852 and the median is $760 per year. The most expensive construction estimating software can reach a subscription of $2,000 per year.
But with that said, Hard Dollar notes that construction estimating software “can help you reduce project costs by 15 percent while increasing productivity by up to 300%” and many users claim that it has made their bids “10%-15%” more accurate.
Construction estimating software is easy to use, saves time, brings you closer with your customer, puts you ahead of the competition, and is a reasonably-priced asset for your construction firm. Not convinced? Check out our guide to see if you’re ready for bidding software. And let us know: does construction estimating software work for you? Are you talking about it? Leave your thoughts in the comments below!