Estimating smarter, not harder

By Dave Chapman, Estimating Edge. 

Outdated estimating methods are costing construction firms time, money and bids. 

If you’re still buried in spreadsheets and chasing down material prices from last month’s emails, you’re not just estimating, you’re gambling. In today’s fast-moving construction world, where razor-thin margins and rapid turnaround times are the norm, outdated estimating practices can sink a project before the first shovel hits the dirt. Fortunately, the tools to fix it already exist. With solutions from Estimating Edge, this isn’t a crash course in theory, it’s a no-nonsense guide to solving the most common estimating pain points with real-world tech that works. 

1 – Pain point: Manual estimating calculations 

One of the most significant challenges in construction cost estimating is the time it takes to perform manual calculations. 

Estimators must gather data from a variety of sources — project plans, specifications and similar past projects — and personally calculate quantities, labor rates and materials, which can take hours or even days. 

This manual approach is not only slow but is prone to costly human errors. And this strategy of estimating limits the number of bids a construction business can submit each season. 

Solution: Automated calculations 

Construction estimating software automates the measuring and counting process with built-in features that quickly calculate the required quantities, labor hours and material costs. 

This eliminates time-consuming manual work, freeing up estimators to focus on refining the project scope, improving accuracy and taking on additional projects. 

By integrating with digital blueprints and trade-specific databases, the construction estimating software ensures that all calculations are consistent and up to date, saving time and reducing errors. 

2 – Pain point: Inconsistent data 

Inconsistent information is a major issue in traditional estimating methods. When different estimators from the same company use different templates or formats or tools, the result is often a lack of uniformity in construction cost estimates. 

Additionally, significant budget overruns and delays can occur due to the discrepancies between: 

• Material costs 
• Subcontractor quotes 
• Labor rates 

When a construction company can’t provide evidence of accurate, uniform construction estimates over a period of time, they lose credibility. 

Solution: Streamlined data management 

Construction estimating software puts all project data in one place, ensuring consistency. It uses up-to-date, trade-specific databases for material costs, so estimators are always working with the most current information. 

Contractors can also set conditions and create pre-built templates within the software to ensure estimators use the same methods across the company to build accurate, consistent estimates in construction projects. 

Additionally, some construction estimating software also allow for integration with project management systems and accounting software, enabling a more cohesive flow of information between different teams and departments. 

3 – Difficulty in handling scope changes 

In the construction industry, projects are rarely static and changes to the scope — whether it’s a design modification, a change in materials in construction projects or an unforeseen issue — are common. 

When these changes occur, manually adjusting the estimate to reflect the new conditions can be time-consuming and error prone. 

Solution: Change order management 

Construction estimating software allows users to easily update and revise estimates in response to scope changes. 

Estimators can adjust quantities, material specifications, labor rates or project timelines in real time and the software will automatically recalculate the cost implications of these changes once its approved by stakeholders. 

This flexibility allows for quicker response times to scope adjustments and reduces the risk of underestimating costs or missing critical details. 

4 – Pain point: Managing complex projects 

As the scale of construction projects grow and become more complex, the estimating and bidding process can become overwhelming. Large-scale projects with multiple subcontractors, extensive material lists and detailed timelines are difficult to manage manually and there’s a higher chance of oversight that can lead to lost profits and project delays. 

Solution: Cost breakdowns 

Construction estimating software is specifically designed to handle the complexity of large projects. 

It allows for detailed breakdowns of costs by phase, trade or location and can handle multiple cost categories, including: 

• Labor 
• Materials 
• Equipment 
• Overhead 

By breaking the project down into manageable sections, the construction estimating software makes it easier to track costs, monitor progress and identify potential risks. 

Many estimating tools also offer advanced reporting capabilities, which provide real-time insights into project costs and allow for more accurate forecasting. 

Solve your construction estimating challenges with The EDGE® 

As shown throughout this honorary construction estimating course, estimating software — like The EDGE — has transformed the way estimators approach their work by addressing the common pain points of time-consuming calculations, inconsistent data, scope changes, poor communication and complex project management. 

The EDGE helps construction companies create successful construction estimates and improve accuracy, reduce risks and deliver projects on time and within budget by: 

• Automating manual processes 
• Ensuring data consistency 
• Improving collaboration 

To see how The EDGE can help you with your construction estimating process, speak with an industry expert today!

Original article and photo source: Estimating Edge