Appraising expenses is crucial in the world of construction, as the correct estimate sets the stage for smart profit and an incorrect estimate can set the stage for disaster.
Because every construction project is unique, estimating software makes all the difference by establishing a criterion for financial planning and allows builders and contractors to accurately gauge the costs and profitability of a project.
Even when using the most dependable software, mistakes and events occur which can change initial estimates and planning. These issues can be harmful. This can be seen when they sway your customer’s cost breakdown and produce unintended consequences such as overspending on supplies, labour, and subcontractors.
Construction projects are time-consuming enough without squandering precious hours gauging costs. You need the correct direction and planning to ensure you estimate jobs correctly and get to work fast. When using estimating software there are several steps you can follow to ensure time and money is saved.
7 Time-saving Tips for estimating software.
1. Planning Stages
Planning is the key to any job in construction.
It’s important to know as much as possible about a project before you get started, including:
- Project length estimates
- Planning permission
- Equipment availability
- Material ideas
- Design layouts
- Projected costs
This is where details matter, as every spec of the project should be assembled before any work begins, allowing you to create a big picture with all the variables considered.
When drilling down an estimate, be specific. Ensure you know what the customer wants. Estimating software is only as good as the input, so you need to get this part right.
Many jobs go awry because something is off in the planning stages. You don’t want to start all over again because your concept of the project deviated from your client’s ideas.
2. Delegate and Gather Assistance
Many contractors using estimating software are wildly off when it comes to evaluating costs because they don’t want to involve other parties. It’s easy to work within the context of what you know, but it’s hard to gather accurate information when it’s a subject you aren’t familiar with.
There are ways to fill this knowledge gap. Estimating software typically has templates and modules that allow for efficient evaluation of costs, while it may also be prudent to call subcontractors or field experts to get a second – or third – opinion.
The last thing you want to do is speculate the cost of flooring when you don’t know anything about the topic. Know when it’s time to reach out and gather more input.
3. Labour Counts
Strangely enough, many estimates go askew because contractors don’t include labour costs.
But if you’re not factoring in how, you compensate your workers then your costs are going to be sky-high.
Labour costs take up a big chunk of expenses in every construction job. Many contractors underestimate labour in the hopes of assembling a more attractive estimate. This is a big mistake.
Also, if you’re hiring speciality labourers factor that in. Some work comes with additional costs, if you need specialist welders, quantity surveyors etc. is prudent to add this to your costs and to inform all relevant parties of additional expenditure and the reasons behind it.
4. Learn the Value of Time
The old school method of paper, pens and a spreadsheet may feel more familiar, but the time you save employing technology is time you can put into the job itself.
Most estimating software aids the elimination of time-consuming mistakes like miscopied formulas or incorrect cost metrics. Filtering the details to confirm if that was a two you wrote down instead of a three takes ages and you still might not determine exactly what went wrong.
Estimating software cuts to the chase and uses performance details to establish the correct groundwork, slashing pricey mistakes.
Most software has everything you need in one place. Instead of jostling between materials pages and digital plans, you see everything you need on one screen.
5. Double-check Subcontractors
Subcontractors are human beings.
Their quotes may be off the mark. Even if they absorb the costs of oversights, everything rolls downhill. A subcontractor’s miscalculation becomes your miscalculation and that costs your bottom line, particularly if you haven’t factored in any wiggle room.
Estimating software establishes a foundation while ensuring you create a plan that makes sense. You can position the numbers in one place and assess different factors in real-time, planning on the fly.
6. Research the estimating software you use.
Numerous companies provide estimating software, it is up to you and your team to study and evaluate what is most suitable for your business. Do you need to simply compare suppliers and costs? Then tools such as Cubit Select will work for your team.
If you require more advanced features such as earthwork estimates then, Mudshark from Brightbox will be the tool for your business. Evaluate what your goals are and there will be tools available for you.
7. Consult with others:
One of the most efficient methods to understand estimating software and how beneficial it can be for your business is to consult with colleagues and others within your fields.
Reviews and feedback from those closest to your industry will help make decisions easier. Better yet use and test the software available before purchasing giving you insights into the features available, associated costs and how to correctly use the software.
Conclusion:
Estimating software is not the holy grail of answers related to costs and take-offs, but it is a positive and modern approach that will continue to be adopted by industry leaders. It is important to be ahead of the curve and adopt software that works ideally for your business.
