Question 1

What is Construction Estimating Software?

Accepted Answer

Construction estimating software helps construction managers, contractors, and companies better calculate the total cost of a construction project. Interesting features of construction estimating software are its accuracy and automation with speed playing an important role in both. Before a contractor begins a construction project, they are required to submit a bid to their clients. The bid is made up of many elements, including estimating the cost of materials, predicting the number of manpower hours a project will take to complete, and comparing resources and labor costs with competitors. A construction project cannot begin without the draft of a cost estimate. The estimated cost may fluctuate when certain aspects of the project were not accounted for or were either overrepresented or underrepresented in the initial bid. The potential for human error is massive in construction projects, which increases the overall cost of the project. 
 Construction estimating software may either be purchased as a standalone product or bundled within a construction project management platform or construction ERP software. Construction estimating software provides users with tools that automate data entry, pulls the most up-to-date prices of materials and equipment, and identifies labor and overhead costs. 
 Key Benefits of Construction Estimating Software 
 
Helps draft accurate bids, aids contractors and construction professionals in moving away from time-consuming legacy tools, and instills more confidence in clients
Provides users with tools that automate data entry and retrieval, ensuring accuracy and speed
Reduces the potential for users to misattribute numbers or forget to double-check the availability of a materials
Enables both the easy adjustment of estimates as well as instant takeoffs (generating a list of materials needed for a project)
Tracks any deviations and alerts contractors and clients about changes to the final cost, helping contractors to stay close to the original estimate

Question 2

Why Use Construction Estimating Software?

Accepted Answer

Contractors and companies are enabled to bid on more projects and win more clients by utilizing construction estimating solutions. With this software, construction professionals spend less time on calculations and focus on cultivating productive client relationships and building financially sound construction projects. Such software helps reduce manual efforts, allowing users to concentrate on critical labor and project management. Construction estimating software is used in both the pre-construction (“pre-con") and operational stages of the construction project lifecycle. For example, when construction estimating software is used post bid as the project progresses, it keeps track of materials management and ongoing costs and also predicts any potential deviances to the initial estimate. 
 Reporting — Most, if not all, construction estimating software generates reports. Those reports range from straightforward estimates to historical project data to predictive business intelligence. Reports equip contractors with more proof of progress and support the need for increasing materials or labor. Additionally, some construction estimating solutions provide access to an industry database of materials and resources, which helps with initial estimate creations. 
 Speed — Construction estimating software automates the manual processes that contractors and project managers followed in the past to calculate all costs that a construction project incurs. Construction industry professionals have turned to spreadsheets to offset some of that manual effort, but even spreadsheets are prone to human error and do not necessarily reflect or enable data consolidation. 
 The most compelling reason to use construction estimating software is speed. Increasing estimation speed results in time saved, meaning increased efficiency and productivity. Speed assists in cutting down the number of hours spent on drafting up one or multiple estimates; it also enables users to minimize data duplication, ensure standardization and consistency across countless projects taking place simultaneously, and facilitates collaboration between project owners, project managers, and individual construction industry professionals. 
 Process consistency — Additionally, construction estimating software makes processes more consistent, improving the entire construction project lifecycle to help construction businesses scale in the future. With construction estimating software, project managers are enabled to better supervise project progress, delegate responsibilities throughout the entire project lifecycle, and effortlessly review the expenses accrued versus the resulting total profit.

Question 3

Who Uses Construction Estimating Software?

Accepted Answer

All types of stakeholders in the construction business use construction estimating software. For construction firms to not exceed budget and resources, they must pull historical project data in addition to analyzing the breadth of the current project via an estimate. While trade-specific estimating software does exist, most general or subcontractors find that the majority of construction estimating solutions fit their needs.

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G2 Grid® for Construction Estimating Software

Xactimate Pricelist Monthly Update + Markup Auto-Applier

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