Project management technology, namely estimating and takeoff software, can provide a more efficient planning process.
An erroneous project quote can cost a contractor plenty. If an estimator is wrong on the figures or off on the timeline, it can be corrected, but at what cost? The price of materials may cost the company in profits, and mistakes can cause the client to lose faith in the contractor. The answer may be found in your project management technology — estimating and takeoff software, to be exact.
Estimating and takeoff are just two aspects of a project bid, and it's important to know the differences between the two.
With estimating software, a contractor can provide the client with more accurate figures a lot sooner.
A construction takeoff is an extensive list of material amounts and costs for a project. All materials including raw and manufactured items are accounted for before a construction takeoff is considered a success.
A takeoff software program allows the contractor to provide the client with a more-complete construction plan. Of course, takeoff and estimating software aren't the only two software options for construction businesses, said Collin Couey of softwareadvice.com.
Other construction software options will integrate with project scheduling, project management or even accounting software.
Which type of software is the most practical investment for your construction business? Do you need both?
"It all comes back to knowing what issues you need your software to solve in order to find the best software solution for your business," Couey said.
Getting Estimate Right
Though the client understands an estimate is not the final number, if it's "way off the mark," you could lose your credibility as a contractor.
Couey said estimating inaccuracies can be the result of incorrect pricing data, faulty schedules or manual errors.
Manual estimating requires extensive research. Project details and client needs have to be figured into pricing lists before numbers can be set. The estimating phase is a time-eater when you're flying without technology and can cost your company if the client rejects your bid.
"If you're facing these issues and are constantly worried that your quotes aren't accurate, it's time to consider using construction estimating software."
Estimating software allows the user to formulate the exact cost of project material quantities and labor, said Couey.
"What might have taken you hours to put together will instead take minutes," he said.
Some estimating software can even scan material costs from a large database from your area of the country. The user simply provides the system with a zip code or geographical location, and the technology provides them with the best price options.
Couey added that this process not only saves the contractor time, it also ensures they're able to provide an accurate estimate as quickly as possible. Using estimating software can increase the accuracy of your construction quotes and provide your business an edge over your competitors. Plus, the quick turnaround "will net you more work and happier clients," he said.
The user no longer has to worry about complex codes or formulas because the software will do all the calculations for them.
"Also, if your client wants to add or subtract something [in] the initial bid, you can make adjustments on the fly," said Couey.
Ensuring Smooth Takeoff
The size and scope of a project can determine how simple or complex the takeoff phase of a project will be, said Meghan Townley of Buildertrend.
"Using takeoff software is one of the best ways to start your construction estimate," she said.
Townley believes the technology can improve accuracy, save time and money, increase efficiency and give the contractor a competitive edge.
"At a time when material costs are at a premium, the margin for error is small," she said. "It's essential to ensure the measurements for your construction projects are as comprehensive and accurate as possible."
Using takeoff software is the contractor's "key to success" when it comes to estimating and bidding precisely. Consider how many interruptions happen in the middle of figuring quantities of construction materials.
"How long did it take you to get back to where you were? Did you have to start over?" asked Townley. "With takeoff software, you're able to measure directly from the blueprints using a scale tool."
She said, in fact, the software's digital, color-coded calculations can keep your estimates organized and accurate, so nothing gets missed. Using digital blueprint features mean less miscommunication and rework. No more manually hunting for discrepancies or changes in blueprints.
"Instead of hunting for the differences between revised blueprints, the digital overlay feature highlights the changes for you," said Townley. "With paper blueprints, it's easy to miss the little details that may have shifted, but with digital drawings, you'll catch mistakes before they happen."
The benefits are reduced labor costs, fewer risks, a higher bid win ratio and happy clients, she said.
"This competitive advantage won't just save you money but will hopefully bring in some new business."
Digitizing blueprints means the contractor no longer has to worry about continuous reprinting of the project plan for various teams and crew members. The entire operation can have access to updates in real-time, "so everyone's on the same page," said Townley.
"In an industry as competitive as construction, the more you can do to stand out, the better," she said.
Being able to create estimates quickly allows the contractor more time to review and even present bids ahead of schedule.
"Implementing takeoff software will give you an advantage over your competitors who are still using a manual estimating process."
Determining What You Need
Couey suggests that if you're shopping for the best type of software for your construction business needs, focus on "specific pain points" you want alleviated.
"For instance, if you find yourself unable to provide quotes to potential customers in a timely fashion, you might be losing out on revenue."
Additionally, you might find that the quotes you're giving out aren't accurate, he said.
"Generally, as a business owner, you will need to figure out what part of your business is lacking automation."
Ask yourself what part do you spend the most time on. If it's scheduling, invest and focus on software suites with more robust scheduling features. During your workday, note the parts of your job that eat up the most time. Is it managing the project schedule? Calculating quotes? Measuring the takeoff?
"That's how you'll figure out what you need your software to solve," said Couey.
Based on the quantity of projects you're completing or the estimates you're providing, you might not need the added efficiency takeoff software provides. But if you're overwhelmed and unable to keep up with the demand, takeoff software will provide more complete, detailed construction plans with less effort.
In selecting software, Couey advised contractors to try multiple free trials and product demos. He also suggests having a backup plan if your first choice doesn't offer a free program trial.
"Free trials aren't always available, so it's important to have a game plan if your top choice doesn't let you take a test drive before purchasing."
Keep in mind, as well, that you can almost always get a hands-on demonstration with the software before making any decisions, he said.
And "utilize free trials with intention," said Couey. "Use the free trial during your next job to see if it helps alleviate the pain points you need it to."
Write down any questions you might have so that you can ask the vendor about them.
"With a free trial, you'll be much more informed and equipped to go into a demonstration with a vendor to maximize the information you get."
Also be sure to provide the vendor with specific use cases. Think through what makes your job inefficient and provide a specific, real-world example. That way the vendor can show you exactly how their software can help solve that issue, said Couey.
Complete multiple demos before you decide. The first can just be you and the vendor. But bring in other potential users of the software for subsequent demos.
"They might have different questions or concerns that you hadn't considered before," said Couey.
Consult peers in your software search. Even if you start from ground zero, so many resources are available to help you out, he continued.
"The first place you can start is asking your colleagues what software they use." Word of mouth is "king" when it comes to finding solutions.
"Don't tackle software selection alone," said Couey. "Listen to the advice from your peers who have gone through the same struggles. Ask for help."
He also suggested reading reviews, talking to vendors and trying out multiple options.
"As long as you utilize the resources available to you, you will almost certainly be in a better position once you've acquired software."
In the end, you'll be more efficient operationally and you'll be able to provide more accurate quotes in a quicker time frame.
"You'll spend less time worrying about takeoff or estimating, and your project management will be more smooth," said Couey. CEG
Lucy Perry
Lucy Perry has 30 years of experience covering the U.S. construction industry. She has served as Editor of paving and lifting magazines, and has created content for many national and international construction trade publications. A native of Baton Rouge, Louisiana, she has a Journalism degree from Louisiana State University, and is an avid fan of all LSU sports. She resides in Kansas City, Missouri, with her husband, who has turned her into a major fan of the NFL Kansas City Chiefs. When she's not chasing after Lucy, their dachshund, Lucy likes to create mixed-media art.
Read more from Lucy Perry here.
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