Incorrect construction cost estimating can quickly result in lost money and lost customers; doing it correctly, however, leads to business profitability and satisfied customers. With a variety of approaches to choose from, how do you find the best way to estimate your construction costs and keep your business running smoothly?
SOFTWARE FOR COST ESTIMATING: IS IT A NECESSITY?
While businesses make increasing use of computers to perform everyday tasks, more than 50% of construction cost estimators fail to use the proper tools and available software. Software solutions don’t have to be complicated or expensive, and most include basic features that provide more than enough functionality to get the job done.
These features include:
- Takeoff tools: features designed to assist with taking measurements from paper or digital plans
- Integrated cost databases: tools that increase cost estimating accuracy with commercially available data, such as RS Means, along with your data
- Calculations for estimates: calculation functionality within worksheets that lay out requirements and estimates in varying degrees of detail
Proper integration of construction management software also speeds up the business as a whole by creating processes to improve efficiency and reduce human error.
The Benefits and Pitfalls of Human Cost Estimators
Skilled cost estimators can leverage the power and speed of cost-estimating applications and then use their expertise to confirm or improve the results.
When a computer is responsible for this repetitive work, a greater percentage of the cost estimator’s time can be used to develop the process by improving the appearance of estimates. Software applications typically offer a variety of reporting options in regards to presenting cost breakdowns and proposals, including the use of charts and graphics to increase clarity.
Conversely, there are pitfalls in relying solely on human cost estimators to get the job done. When using a cost estimating application, estimators should avoid the following errors:
- Failing to read relevant project documents and/or skipping the site visit
- Improperly entering information into the application or omitting information
- Subjective cost adjustments (The final cost estimate generated by the software may be higher or lower than expected but may still be correct.)
- Failing to check the final result (Figures from an application must be checked for relevance and compared to similar projects.)
So, are applications or people better for construction cost estimating?
Based on the information above, it’s obvious that human know-how and software applications are both key components in successful construction cost estimating. The human characteristics of an experienced cost estimator compensate for what a software application can’t provide, while computers are faster and more reliable in their resource calculations.
Is your business considering implementing a construction cost estimating software to assist its estimators? If so, the experts at Cabbage can help you choose the solution that supports your business needs and estimating practices. For more information, contact us today.