Construction Estimating Software

Construction estimating software is not a luxury for contractors today, it’s a necessity. If you’re a building contractor it’s almost impossible to compete if you’re still writing estimates on the back of an envelope or on a hand written worksheet. This is true for numerous reasons.

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Construction Estimating Software on a laptop

One of the common themes I’ve heard from many contractors is the lack of accuracy in their estimates. And, because of the lack of accuracy, they frequently lose money on their jobs. With the other side of the coin being that they don’t get the job because their estimate is too high. Losing money on the job is probably worse than not getting a job, but it’s close to a toss up.

Most frequently, the ones that are complaining about the accuracy of their estimates are the contractors that are doing the estimates by hand. The accuracy problem is not only the cost of materials, but how long it will take to do the job. As I’ve commented on numerous occasions, most of them are “guesstimating”, not estimating.

Here’s Why You Need Construction Estimating Software

I’m making an assumption and you know what they say about that. I’m assuming that most construction estimating software whether it’s construction estimating freeware or commercial construction estimating software it’s going to do the calculations correctly to produce an estimate. So, with that assumption, just the fact that you’re using construction cost estimating software means that your estimates are going to be accurate.

I must say that assumption is only partially correct because if you don’t have accurate material prices and labor production rates you’re still going to be in trouble. Many contractors, and maybe you are one of them, use generic cost books, like the National Construction Estimator, or Mean’s Cost Data, which will get them, or you, into what’s hopefully a ballpark of the actual costs for doing the job. Even though there are regional adjustments to the prices, they’re still only ballparks.

Tracking Labor Production in Contractor Estimating Software

One thing while I think about it. You should be tracking labor production rates, i.e. how long it take to build one unit of something. For example, how long for a carpenter, or a carpenter and helper, to build 1 foot of  a 2X4 interior wall with drywall on both sides. The reason is that if you know the production rate you can always calculate the actual cost. Your labor rates are going to vary from time to time and it’s much easier to change one calculation the dozens or hundreds in your database.

Learn about Construction Estimating Programs