You may have heard estimators or other professionals within the construction circles say that they can comfortably beat the best construction cost estimating software by using the old fashion, manual methods. Sure, you might crank out an accurate number once or twice, but you cannot duplicate the accuracy across different projects and might have to pay dearly for any errors. Remember, even Gary Kasparov, one of the most revered chess world champions lost to a computer program in a game of chess. Technology and artificial intelligence in general is now inching closer and closer to human intelligence and in certain circumstances have even led to more efficiency.
Projects can fail due to unforeseen circumstances. Estimating the construction costs of a project down to the last coin is virtually impossible. However, with the right information and the right software tools, a good estimator can account for as many factors as required to develop accurate, profitable estimates. There is a common misconception that construction firms experience losses during the building stages. This is because of the cost overruns that pop up or go unnoticed till the end of the project. While a lot of this might be attributed to negligent cost control practices, actual losses begin during the cost estimation process. Due to the complex nature of all the construction variable resources, inaccurate estimates are quite common.
Fortunately, technological advantages now ensure estimators get the most accurate estimates and that they can now mitigate a lot of the errors in traditional cost estimation processes. The best construction cost estimating software in the market helps to handle the complexities of estimation and significantly cut down if not eliminate the margin of errors. This means consistent, profitable bidding for your firm. By employing a standardized, repeatable process for building estimates, your firm will make successful final bids and with a degree of consistency. Without a consistent, standardized estimating process, you may need to have several people contributing to the process. This presents risks of inaccuracy as some costs could fall through the cracks and not be captured in the final bidding.
With building projects increasing in size, variation and complexity, the need for accurate and efficient construction cost estimating has become especially critical. The construction cost estimating process includes so much detail and is fraught with potential for errors at every turn. Underestimating costs can lead to losses while overestimating costs will only ensure your firm maintains a low bidding-to-win ratio. Bidding in the building industry is a numbers game. Customers tend to select the lowest bidders as long as they have met their standards and specifications.
Several critical considerations feature prominently when it comes to the process construction cost estimating process. One, and probably the most critical, is the materials involved. While large projects may present opportunities, economies of scale, estimators still need to calculate the right quantities of materials. They also need to determine the rates as well as the variations of shipping and taxes. Location significantly affects the costs of construction projects. The distance of materials from the site and the geographical conditions, all affect the cost of materials, and consequently, the cost of the project.
Labour is the next important consideration, and the success of construction projects depends on securing sufficient labour. The best construction cost estimating software allows estimators to produce accurate labour forecasts by factoring in location-specific rates, taxes and benefits and any other factors that might impact the cost of labour.
The scope and complexity of the construction project directly affect the cost of equipment. Equipment costs usually appear as fixed costs and estimators often try to trim expenses by considering other options such as rentals or leasing options. However, there are other indirect expenses such as insurance, maintenance and licencing that might add to the overall equipment costs. The best construction cost estimating software in the market captures every detail and factor adjustments whenever equipment changes arise.
Some of the best construction cost estimating software allows estimators to upload plans and blueprints. This quickens the estimation process and increases accuracy and overall efficiency. However, incomplete or poorly drafted plans can cause all kinds of confusions such as omitted details and inaccurate specifications which can cause unnecessary project delays and costly budget readjustments. Poorly drafted plans may even influence contractors to charge extra so as to factor in potential losses. Higher bids are disadvantageous and can lead to low bid-win ratios for the firm.
Other considerations include insurance to cover the various risks during and after the construction project, the legal environment, and environmental concerns. Green proponents all over the world now weigh in on construction projects. Contractors now have to comply with environmentally friendly designs and practices to avoid public interferences. Construction companies are notorious for spending less on their IT and it perhaps unsurprising that they are infamous for completing projects with budget overruns. With growing complexities, shrinking margins, and fierce competition, having the right estimation tools is now absolutely critical and can determine the survival of a construction firm going forward.
Construction estimators can now benefit from advanced software tools that streamline the process of estimation. Tools such as Cubit Pro gives estimators the power and flexibility to produce instant, accurate takeoffs. With additional tools such as the BIM Takeoff Module, Cubit Pro provides a powerful, unmatched 3D model-based on-screen construction cost estimating capabilities. A 3D takeoff means that users can quickly and easily extract quantities to build accurate estimates. Estimators can now navigate through their BIM models with ease, which means that they can now confidently and promptly create the best estimates.
If you are looking to upgrade or acquire a construction cost estimating software, it is generally a good idea to select one that is designed, built and used by experts in the construction industry. The Buildsoft range of construction estimating tools offer innovative and the most user-friendly 3D on-screen tools that will significantly enhance your construction cost estimating capabilities.
We know you’d rather be out in the site than behind a desk. Why don’t you join 7,000-plus companies that now rely on the Buildsoft range of software for their construction cost estimate needs. This list includes both large construction companies (GCs) as well as small to medium-sized and even subcontracting firms.
