Are you drained from the predicaments that always seem to arise when you're trying to estimate residential construction costs? It is commonplace for contractors to get fed up with the dilemmas of computing an estimate, so many will end up guessing instead. This is very harmful to your organization: if you overestimate, you probably won't get the job, but if you underestimate, you can really wind up losing money. Do not allow these frustrating complications to injure your business any longer; purchasing a construction estimating computer program will save you cash, suffering, and time. Some contractors are unwilling to invest money in estimating software. Possibly you have never trusted computers. And chances are that you're already fighting to earn a profit, so you are not about to throw away your hard-won money on some ineffectual technology that you will have no use for. But this software system oftentimes changes into a contractor's best friend... What Is Construction Estimating Software Going To Do For Me? Once you acquaint yourself with the software system, it will be much simpler for you to compute reliable estimates. First you simply enter the numbers for the contract you are estimating, and the software system will produce a thorough, extremely meticulous report of the estimate for your project. It is also facilitative because it will store the measurements from your previous contracts. Every contractor learns the need for keeping track of the statistics from past businesses so that forthcoming estimates are more meticulous. The construction estimating software will allow you to record this data quickly. Then it will collect a database of past bids for simple reference when you're estimating forthcoming projects. You can work without the irritation of flipping through a bunch of aging papers and notebooks to find some hidden number that you scribbled down a long time ago. Construction Estimating Software Does More Than Facilitate Estimates An estimating program comes equipped with a variety of helpful features other than organizing bids. Some of the other tasks it is capable of that will help with the organization and government of your business include: *Managing labor costs and crew rates *Creating contracts and bid proposals *Tracking purchase orders and inbound inventory *Providing current material prices which are frequently updated Most contractors who have purchased a construction estimating program have found that it is a priceless benefit they just cannot manage without. As a matter of fact, after familiarizing themselves with the software system, many contractors have been able to preserve their dying businesses. Possibly if you give the software system a chance, you will realize why it is such a necessity.
Technology is not the answer to all the problems of the world, but it is a great solution to the needs of construction management. And unconditionally the most important first step in embracing technology is selecting and utilizing the best construction estimating software. Remember, without good construction estimating you do not need accounting, sales, crews, buildings, trucks etc; without a good construction estimating you won't be able to stay in business.
Remember in today's brutal market, survival is directly related to being a leading company that stays ahead of the competition, maintains loyal customers, and always makes an above average profit. Proper automation and utilization of construction estimating software can allow a struggling construction company to get out of the doldrums and become seriously profitable.
Sadly, some surveys even indicate that staying on the cutting edge of technology was just not a priority with many construction companies. For those that do care, most of these companies are scrambling to catch up with computerization, construction estimating software, backend software management systems, etc. and are too often content doing the minimum to stay even with their competitors and customers.
One of your company's goals should be to become a technology leader. Consider hiring only those project managers or superintendents who are totally literate in email, word processing, scheduling, and construction estimating software.
Failing to cater to your customer's needs and demands for your implementation of technology can cost you business; it can make or brake your company. It is estimated that 65% of construction companies communicate with architects and engineers with email, and more than 75% use email to be in contact with customers. A growing number of contractors use the internet for job correspondence with other contractors, subcontractors, or suppliers. Virtually all construction buyers feel that contractors using construction estimating software provide more accurate quotes.
Quite often we find contractors that pay "lip service" to their clients and make claims of their companies being computerized, but in reality most do not manage their business with any type of automation. Only about 10% use the internet to submit invoices or progress payments to customers, and virtually none use the internet to transmit their construction estimating software bids.
The construction industry is considerably behind the times compared to others. In the retail business, products are ordered, produced, shipped, paid for, and re-ordered without a single piece of paper.
Construction still requires paper invoices, original and notarized signatures, conditional and final lien releases, joint checks, architect and bank inspector approvals, and copies for everyone involved. This is distressing because most of these paper functions could be made completely paperless it the proper technology, processes and construction estimating software is implemented.
Computers are becoming more of a required tool as at least 50% of project managers carry laptops while only around 25% of field supervisors have or use a computer. Many of these computers are used only for email and basic communications but very few are using these computers to dynamically link their construction estimating software and backend systems to the field
About one half of construction companies use some type of scheduling software. Strongly consider upgrading your scheduling software to a more sophisticated, cutting- edge, comprehensive package that allows you to import bids from your construction estimating software. By doing so, your proposals for projects will be put ahead of your competition and often is a major factor in winning the job.
Technology will save you cash.
Overhead expenses can most often be reduced by at least 25% by implementing and maximizing the use of technology and construction estimating software. It can help you become much more efficient as you eliminate paper, faxes, mail for project minutes, job correspondence, shop drawing tracking, subcontract logs, change order requests, daily job reports, and many other items.
It's very surprising that only 20% of subcontractors and 33% of general contractors use a comprehensive project management software package. Regrettably, very few construction companies are dynamically linking their project management and scheduling software with their construction estimating software.
Remember, the construction estimating software bid in the start of every project. It is the heart of your business. Failing to link the construction estimating bid to the rest of the project functions will guarantee that labor and material functions will be missed, or inefficiently accomplished.
Of course, all of these statistics may not really surprise you. Many contractors consider themselves computer illiterate, and most feel that they have only the most basic skills in using a computer. Maybe that's not surprising when most contractors would say that their kids know more about computers than they do.
The world is changing and technology is a reality. Companies who realize these facts become leaders, while those who don't fall behind and never catch up. Using construction estimating software coupled with other basic technology can make you more efficient, more professional, help you win more profitable contracts, keep track of job costs, and make you money.
Both Mauinick & Phillip Gilliam are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Mauinick has sinced written about articles on various topics from Personal Desktop, Phone Cards and Legal Matters. Nick Hurd is the developer of LiteningFast Estimating and the Contractors Profit System. Discover how you can benefit from