Construction Cost Estimating Software

Take Our 2013 Construction Estimating Software Benchmark Survey

In 2012, we surveyed construction estimators about software adoption and effectiveness in the construction industry.

Now, one year later, we want to understand how software adoption in the industry has changed--and to what extent technology helps estimators do their job. So we want to hear from you. Please take a few minutes to complete our short survey.

 

To thank you for your time, we’ll send you a free copy of the report after we analyze the results. Please just leave us your email address so we know where to send it.

Results from our 2012 Report

In 2012, we found that top priorities of construction firms were improved process standardization, accuracy and speed. While we expected estimators to focus on these top priorities, we were surprised to learn that these priorities did not align with the top challenges cited in our survey.

For instance, while just under 25 percent of our survey participants thought that bid accuracy was one of their top challenge, a full 75 percent cited improving bid accuracy as one of their top priorities for 2012.

It will be interesting to see how this year’s results stack up to our 2012 findings. If you’re interested in an analysis of our 2012 report, please visit our 2012 Construction Estimating Benchmark Report.

There are more than 50 construction estimating and takeoff software packages available. They range from Excel add-ons to enterprise-class, multi-user systems. Some cost as little as $99 while others are a six-figure investment. Meanwhile, there are unique systems designed for different industries, trades and divisions.

If you haven’t been in the market for some time (or ever), there’s a lot to figure out. We’ve written this guide to help you make sense of the market. Here’s what we’ll cover:

• Functionality in Estimating Applications
• Benefits of This Application
• How Estimating & Takeoff Differ
• Market Trends to Understand
• The Vendor Landscape

Functionality Included in Construction Estimating Applications

Construction cost estimating software helps estimators calculate material and labor costs as well as produce detailed, professional proposals from these estimates. While these systems have always been useful, the proliferation of fixed-bid work and intensifying competition for projects is making them an even more important tool. Below is a breakdown of the functionality included in a typical contractor estimating software package.

In case you aren’t familiar with these terms, here is a plain English description of the function of each module.

Many contractors require specialized construction estimate software to handle their trade-specific requirements. As such, specialty contractors should evaluate products designed for their unique needs. For example, a mechanical contractor who needs to estimate custom sheet metal work for HVAC ducts would benefit from a specialized application such as Wendes Systems WenDuct.

Or, a residential contractor who is performing his own project estimates might want a straightforward, affordable residential estimating solution where ease of use trumps depth of functionality and sophistication. Other contractors that we often find have unique needs include electrical and earthwork contractors.

How This Application Can Help You

Last year, we surveyed contractors, estimators, building owners and other construction professionals about their estimating processes. In our survey, we asked industry professionals about their top priorities for 2013 and beyond, and the benefits of using technology to support these processes.

The top priorities of construction firms (improved process standardization, accuracy and speed) mapped closely to the benefits firms say they noticed after deploying construction estimator software.

To gain more insights into industry benchmarks and best practices, check out our 2012 Benchmark Report.

What's the Difference Between Estimating and Takeoff?

We find that buyers sometimes confuse estimating software with takeoff software. The confusion stems partly from the fact that these two programs are often deployed in conjunction, as both are critical to developing accurate bids. But they perform two distinct functions. To simplify it:

• Takeoff systems help measure plans and blueprints to estimate the amount of materials and labor needed to complete a project.
• Construction estimating systems determine how much the estimated materials and labor will cost, and then produces a complete bid in a professional format.

If, after reviewing our table of common pain points, you realize that a takeoff program is what you need, head over to our takeoff systems buyer’s guide to better understand this market.

Market Trends to Understand

These pre-construction application market trends should be considered when evaluating a new system and reading construction estimating software reviews.

• Digital takeoff. Digital takeoff has matured and it provides many efficiencies. It reduces the cost, time and hassle of printing paper plans. It also costs less than a plotter or reprographic service. Most systems can measure .pdf, .tiff, .dwg, AutoCAD and other digital file formats. Buyers should strongly consider (and trial) digital takeoff before investing in another digitizer board.
• Increased competition for jobs. The sluggish economy means that contractors are competing for fewer jobs. GCs and project sponsors are running more intense selection processes with shorter bid turnaround times. Contractors need to produce bids faster and more accurately to compete for more jobs, win, and make a profit.
• Geographic migration. Some companies are now bidding on jobs outside their traditional territory. The availability of electronic plan files via online plan rooms, as well as data from BIM files, makes it easier to identify projects and get the data necessary to produce a bid. To compete, contractors need an efficient infrastructure that will allow them to access these online plan rooms.
• Multi-user estimation. Many contractors are seeing a need to involve more employees in the process. In some cases, this results from growth. In other cases it results from a reaction to turnover of seasoned estimators and the resulting skills gap. And other times it results from a desire to gain consensus on estimates. Regardless, demand for multi-user systems is growing and if this is an important consideration you should evaluate the best construction estimating software vendors that support many users.

The Vendor Landscape

The application landscape is highly fragmented and can be confusing. However, we can simplify the market by matching top-rated solutions to our four buyer types.

Have an opinion on this guide? Email the authors. We appreciate the feedback.