5 Questions to Ask Before Investing in Estimating Software 

what to ask before investing in estimating software

So, you’re in the market for a new estimating solution. Before getting any further, it’s important to evaluate the tangible results you expect from new estimating software. For instance, will a new tool cut estimating time? Eliminate errors? Improve profit margins? What is the real problem—or problems—that your construction company needs to solve?  

In this blog, we’ll look at five things every construction company should consider before making a new investment in estimating software—from the urgency of the business need to the reputation of the provider you select. Let’s explore how you can make the best decision for your business needs.  

#1: Urgency: How immediate is the problem that needs to be solved? 

By the time most construction companies start to actively explore new cost estimating software, they’ve usually recognized issues with their current process they need to fix. For many, it’s a matter of efficiency; estimates take too long to produce or contain errors, or systems that are unusable for back-office tasks. When even a tolerable level of inefficiency starts to impact business productivity and profitability the scales begin to tip and getting a new solution becomes a more urgent matter. 

Less obvious are issues with back-office system integrations. For many construction accounting and project management teams, taking the time to reenter estimate data into a different program is a familiar “business as usual” task. Moreover, it can be almost impossible to accurately measure the amount of waste. If you see process bottlenecks that produce a cascade of negative impacts over the project lifecycle, an alternative estimating solution should be implemented before the problem grows. 

Alternatively, construction companies who anticipate active growth mode can avoid potential business disruption and process glitches by implementing a robust and scalable estimating solution ahead of time. 

Applying a “what if” scenario can be a useful exercise for contractors who are unsure of their level of urgency. Imagine, for example, that your company could increase the number of estimates you prepare next month by 50%. How would that affect your revenue? Would it enhance your ability to take on more projects, hire more workers, and grow as a company?  

Questions to ask: 

  • Are manual estimating tasks impeding our workflow and taxing our resources? 
  • Are our accounting teams forced to reenter and reconcile estimate data? 
  • Are we limiting transparency with siloed, inaccurate, or hidden information? 
  • Does our near-term growth strategy include more estimates, users, and projects? 

If you answered “yes” to even one of the questions above, your company may have an urgent need for a more powerful and productive estimating system. 

#2: Consequences: What are the impacts if you don’t take action? 

We’re all familiar with what can happen if a company lives on the bleeding edge, blindly adopting untested strategies and technologies that don’t deliver on promises. It’s expensive, disruptive, and can lead to resistance to change among key decision-makers. But what are the impacts of resisting change to the point that your construction company does too little, too late? 

Project estimating is the perfect example. For years, construction companies of all sizes relied on pencil-and-paper estimates that were slow to produce and prone to error—and many still do. Others adopted Excel as their primary estimating tool and now feel stuck using a generic tool that lacks the power needed for complex calculations and is difficult to customize for many construction estimating requirements. 

So, to what degree are the limitations of manual calculations and Excel spreadsheets affecting your company’s ability to produce winning bids, strengthen client relationships, profitable jobs during construction project closeout, and maintain a healthy growth strategy? 

Questions to ask: 

  • Is our business being affected in a negative way because we’re slow to embrace change? 
  • Is our revenue tied to outdated manual estimating processes and generic spreadsheets? 
  • Do we have low visibility into the true cost of manual estimating errors and limited back-end integration? 
  • Are we missing out on sizable market opportunities because we have limited estimating speed and scope? 

If you answered “yes” to even one of the questions above, your company is probably suffering the consequences of inaction and could realize significant benefits from new estimating system. 

#3: Acceptance: Will you be able to achieve buy-in from every stakeholder? 

Even the best construction estimating software can’t deliver the business outcomes you want if your people are unable or unwilling to use it. That’s what made Excel spreadsheets a popular choice among construction estimators when alternatives were few and far between. 

Spreadsheets represented a major step forward from pencil-and-paper calculations in terms of speed and accuracy, and because they were relatively easy to use, estimators were willing to make the leap. Fast forward to today’s more advanced, construction-specific estimating solutions, and to many, Excel looks generic, clunky, and dated by comparison. Still, some estimators cling to the familiarity of Excel and try their best to ignore its deficiencies. 

So, how can you be sure that your estimators will embrace a new estimating platform before you invest? Doing so requires choosing a solution that combines powerful functionality with convenience and ease of use. Here are three important things to look for: 

A simple interface. A simple and user-friendly interface can do a lot to encourage new users to engage with and use an unfamiliar estimating platform, speeding adoption and offering the reward of improved productivity. One-click functionality and graphical dashboards are a boon to novice and non-technical users, which shortens the learning curve. 

Customized training. Having a range of training options to choose from is essential to catering to different learning styles and company cultures. Hands-on, face-to-face training sessions combined with online tutorial and practice sessions have been shown to be most effective in developing new skills, improving morale, and encouraging adoption.  

Ongoing support. No one likes to think they’re on their own, especially when it comes to resolving issues with new software. Higher levels of buy-in for your new estimating platform will come from knowing that expert support teams are ready, willing, and able to answer user questions and address any problems that arise, especially during the implementation period. 

Questions to ask: 

  • Can we quickly and easily demonstrate the benefits of a new estimating solution to our users? 
  • Are we choosing a software platform that even non-technical personnel will feel comfortable using? 
  • Will training be available that aligns with a variety of learning styles if needed? 
  • Does the selected solution include readily available customer service and technical support? 

If you answered “yes” to all the questions above, your company should expect company-wide buy-in for your new estimating system. 

#4: Alternatives: How does it compare to other solutions? 

As estimating platforms advance and user adoption accelerates, product options are proliferating. All of them will tell you that their solution is the one: cheaper, faster, easier, etc. Sorting out the differences, strengths, and weaknesses can be taxing.  

It’s important to know exactly what you’re buying. Some key definitions to know: 

  • Bidding software focuses on project bids/proposals, subcontractor and project scheduling, client management, and bid analysis/reporting. 
  • Takeoff software pulls information out of digital plans and spec-sheets to generate cost estimates. 
  • Estimating tools help estimators create line-by-line cost and quantity estimates for materials and supplies. These tools can include cost summary templates, pre-added formulas and calculations, and regional part/material cost databases

When it comes to an estimating solution, you have a choice. Either (1) install the software on desktop computers or servers that you own, or (2) gain access to the tool online, via a web browser and mobile devices that connect to the cloud. Many contractors find that the convenience of a cloud-based estimating platform is hard to beat with always on access to data, automatic updates, and scalability depending on estimating volume. 

Before you spend a dime on construction estimating software, take a good, hard look at the cost of the estimating solution(s) your company is considering. Generally, construction estimating software returns on its investment quickly. For instance, it can save your estimators significant time as compared to manual methods of cost calculation. But keep in mind that different providers use different pricing models, some more flexible than others. 

Lastly, take consider the following before you make your decision: 

  • Reputation & customer service. You’re starting a long-term partnership, so make sure that your provider is both reputable and responsive with A+ ratings and reviews. 
  • Accessibility. Hands down, cloud-based estimating platforms offer the highest levels of 24/7/365 accessibility for your users, who can connect from any mobile device. 
  • Product design. Good design asks less of the user, not more. Make sure the experience is intuitive for even non-technical users; a product demo can provide clarity. 
  • Features. Confirm that the estimating software has all the features to meet all your estimating and digital takeoff needs and can be scaled up or down as necessary. 
  • Training. Training helps speed up adoption by new users and boost productivity, so choose a company committed to education. 
  • Pricing. Paying up for powerful features that fit your needs makes sense but beware of overpaying for a substandard product or getting locked into an unwieldy contract. 

Questions to ask: 

  • Have we done all we can to understand what options are available and compare their features, functionality, and pricing models? 
  • Does a smaller upfront capital investment in estimating software make sense for our company? 
  • Could we benefit from the added flexibility of an estimating platform that’s cloud-based? 
  • Are we considering the history, experience, and reputation of each software provider under consideration? 

If you answered “yes” to all the questions above, you have a clear sense of what product options are available to you and how they align with your estimating needs to make an informed investment decision. 

#5: Value: What can you expect in return for your investment? 

“Price,” “cost,” and “value” are all three separate things. For a construction business, bottom-line value is often defined by how much return on its capital investment can be reasonably expected, the higher the better. 

Before purchasing construction estimating software, contractors should specify, even quantify their expectations of the business value it will deliver, now and over time. That way, you’ll have a realistic before and after picture of what you’ll get in exchange for your money that will inform your investment decision. 

If you’ve identified an estimating issue that you know for a fact is costing you money—e.g. lost bids or unprofitable jobs—the value of resolving it quickly with a new estimating solution is clear. Less dramatic, but more important for the long-term success of your company, are underlying process issues that have been tolerated or ignored in favor of maintaining the status quo. Making a major change to your estimating process requires a certain amount of inertia among stakeholders, but delaying the decision to upgrade may be costing your company more than you realize.  

Let’s use integration as an example. Integration essentially eliminates bottlenecks (such as data transmission and conversion) and reduces the inefficiencies of dealing with multiple software solutions, saving time and money. 

Questions to ask: 

  • Are we winning fewer bids than we’d like, or losing money on projects generally? 
  • Do we have urgent needs or underlying issues that are negatively impacting our business? 
  • Have we experienced data transition bottlenecks that affect the productivity of our teams? 
  • Would an unexpected increase, or decrease, in estimating activities result in disruption? 

If you answered “yes” to even one of the questions above, your company could expect a positive return on investment for a new construction estimating system. 

Final words 

Ultimately, every construction company must decide on its own if making an investment in estimating software is the right thing to do. By asking yourself the above questions, you will have a better picture of your own business needs, wants and expectations, as well as what next steps to take. 

Are you ready to explore powerful cloud-based estimating software that combines estimating, takeoff, and bidding workflows? Learn more about ProEst. 

Jeff Gerardi

Jeff Gerardi is the general manager of preconstruction technology at Autodesk. In his role at Autodesk, Jeff oversees the vision and strategy of Autodesk’s preconstruction portfolio of products. He is involved in the development, marketing and driving the success of these products. Prior to Autodesk, Jeff founded ProEst Estimating which was acquired by Autodesk in late 2021. Under Jeff’s leadership, ProEst grew into a thriving, cutting edge SAAS technology firm that served thousands of contractors across the globe. Born into a family of business owners, Jeff has long had an entrepreneurial spirit which helped this company’s growth and success. Jeff is based in San Diego with his wife and three children. They are all avid athletes always looking for life’s next adventure.
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We use Bing to deploy digital advertising on sites supported by Bing. Ads are based on both Bing data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that Bing has collected from you. We use the data that we provide to Bing to better customize your digital advertising experience and present you with more relevant ads. Bing Privacy Policy
G2Crowd
We use G2Crowd to deploy digital advertising on sites supported by G2Crowd. Ads are based on both G2Crowd data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that G2Crowd has collected from you. We use the data that we provide to G2Crowd to better customize your digital advertising experience and present you with more relevant ads. G2Crowd Privacy Policy
NMPI Display
We use NMPI Display to deploy digital advertising on sites supported by NMPI Display. Ads are based on both NMPI Display data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that NMPI Display has collected from you. We use the data that we provide to NMPI Display to better customize your digital advertising experience and present you with more relevant ads. NMPI Display Privacy Policy
VK
We use VK to deploy digital advertising on sites supported by VK. Ads are based on both VK data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that VK has collected from you. We use the data that we provide to VK to better customize your digital advertising experience and present you with more relevant ads. VK Privacy Policy
Adobe Target
We use Adobe Target to test new features on our sites and customize your experience of these features. To do this, we collect behavioral data while you’re on our sites. This data may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, your IP address or device ID, your Autodesk ID, and others. You may experience a different version of our sites based on feature testing, or view personalized content based on your visitor attributes. Adobe Target Privacy Policy
Google Analytics (Advertising)
We use Google Analytics (Advertising) to deploy digital advertising on sites supported by Google Analytics (Advertising). Ads are based on both Google Analytics (Advertising) data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that Google Analytics (Advertising) has collected from you. We use the data that we provide to Google Analytics (Advertising) to better customize your digital advertising experience and present you with more relevant ads. Google Analytics (Advertising) Privacy Policy
Trendkite
We use Trendkite to deploy digital advertising on sites supported by Trendkite. Ads are based on both Trendkite data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that Trendkite has collected from you. We use the data that we provide to Trendkite to better customize your digital advertising experience and present you with more relevant ads. Trendkite Privacy Policy
Hotjar
We use Hotjar to deploy digital advertising on sites supported by Hotjar. Ads are based on both Hotjar data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that Hotjar has collected from you. We use the data that we provide to Hotjar to better customize your digital advertising experience and present you with more relevant ads. Hotjar Privacy Policy
6 Sense
We use 6 Sense to deploy digital advertising on sites supported by 6 Sense. Ads are based on both 6 Sense data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that 6 Sense has collected from you. We use the data that we provide to 6 Sense to better customize your digital advertising experience and present you with more relevant ads. 6 Sense Privacy Policy
Terminus
We use Terminus to deploy digital advertising on sites supported by Terminus. Ads are based on both Terminus data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that Terminus has collected from you. We use the data that we provide to Terminus to better customize your digital advertising experience and present you with more relevant ads. Terminus Privacy Policy
StackAdapt
We use StackAdapt to deploy digital advertising on sites supported by StackAdapt. Ads are based on both StackAdapt data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that StackAdapt has collected from you. We use the data that we provide to StackAdapt to better customize your digital advertising experience and present you with more relevant ads. StackAdapt Privacy Policy
The Trade Desk
We use The Trade Desk to deploy digital advertising on sites supported by The Trade Desk. Ads are based on both The Trade Desk data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that The Trade Desk has collected from you. We use the data that we provide to The Trade Desk to better customize your digital advertising experience and present you with more relevant ads. The Trade Desk Privacy Policy
RollWorks
We use RollWorks to deploy digital advertising on sites supported by RollWorks. Ads are based on both RollWorks data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that RollWorks has collected from you. We use the data that we provide to RollWorks to better customize your digital advertising experience and present you with more relevant ads. RollWorks Privacy Policy

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